Tax Deducted at Source – Due date and Manner of Payment

Tax deducted by the deductor should be paid with the department within time so that the deductees can take the credit of the same while filing their returns to avoid double taxation on their income. Few important provisions in relation to tax deducted at source (TDS) have been provided below:
Chargeability of tax at source
Tax is to be deducted in the following manner:

• In case of payment of salary, it is to be deducted at the time of payment of salary
• In case of payment of interest or payment to contractor or sub – contractor, it is to be deducted either at the time of credit of amount or at the time of making payment, whichever is earlier.
• In any other case, tax is to be deducted at the time of making payment.

Electronic payment of TDS
Payment of tax via electronic mode has been made compulsory in case of all companies and those tax payers whose accounts are required to be audited. Here “tax” includes interests and penalty.
When tax is to be deducted at higher rates?
Where the deductee fails to furnish its PAN or furnishes incorrect PAN to the deductor, the deductor can deduct tax at a maximum of 20% of the income paid.
Due date for filing TDS Return

Date of ending of the quarter of the financial year	Due date for Government Deductors	Due date for other Deductors
30th June	31st July of the financial year	15th July of the financial year
30th September	31st October of the financial year	15th October of the financial year
31st December	31st January of the financial year	15th January of the financial year
31st March	15th May of the financial year following the financial year in which deduction is made	15th May of the financial year following the financial year in which deduction is made

Default in Tax Deduction
In case of failure to deduct TDS, interest @ 1% per month or part of month from the date on which tax was deductible to the date on which it was deducted will be leviable. In addition to this, interest @ 1.5% per month or part of the month from the date of deduction to the date on which it is paid will be leviable