e-Payment of TDS

e-Payment of TDS

The Income Tax Department provides an online option to Pay Taxes Online. The e-Payment service facilitates payment of direct taxes online. The taxpayer will require having the net-banking services from any of the authorized banks.

Penalty for Late Filing of TDS Return

If an individual fails to file the TDS Return within due time, he/she will need to pay a fine of Rs.200 per day until the return is filed. The fee is applicable for every day until the fine amount is equal to the total liable TDS amount.

If the taxpayer exceeds one-year time limit to file the TDS return or furnishes incorrect details of PAN, TDS amount, he/she will need to pay a penalty of minimum Rs.10,000 to Rs.1 lakh.

Reimbursement of Expenses Related to TDS

• The following reimbursement of expenses are considered for TDS:
• Management expenses to parent company are non-taxable
• Per-Diem expenses are non-taxable
• Relocation expenses for employees are non-taxable
• Audit fee is taxable
• Marketing expenses are taxable
• Traveling expenses are non-taxable, however, if it is taxable for FTS
• The reimbursement for visit of a foreign artist is non-taxable
• Consultant fees are non-taxable
• Infrastructure expenses are non-taxable, etc.

Salary TDS Calculator

In order to calculate TDS from salary, you will need to calculate the total gross income from salary as well as other sources, then calculate all the investments and exemptions. Once you have calculated the total amount, you can reduce the allowable investment and exemptions from your salary, this will give you your annual income that will be taxed on the various income slabs.

TDS Return Due Date

TDS return and last dates of FY 2016-17

Quarter	Quarter Period	Last Date of Filing
1st Quarter	1st April to 30th June	31st July, 2016
2nd Quarter	1st July to 30th September	31st Oct, 2016
3rd Quarter	1st October to 31st December	31st Jan, 2017
4th Quarter	1st January to 31st March	31st May, 2017

Advantages of TDS:

TDS is based on the principle of ‘pay as and when you earn’. TDS is a win-win scenario for both the taxpayers and the government. Tax is deducted when making payments through cash, credit or cheque, which is then deposited with the central agencies.

• Responsibility sharing for deductor and tax collection agencies.
• Prevents tax evasion.
• Widens the tax collection base.
• Steady source of revenue for the government.
• Easier for a deductee as tax gets automatically collected and deposited to the credit of the central government.