Last Date Of TDS Return: Quarterly Deadlines CEOs Can’t Miss

Maintaining tax compliance requires corporate finance teams to monitor TDS (Tax Deducted at Source) return filing timelines. Failing to submit returns before the last date results in steep daily late fees and interest penalties.

Understanding TDS return schedules, deposit variations, and accounting procedures is essential to prevent penalties.

1. The Exact Last Date To File TDS Return (All Quarters)

TDS returns are filed quarterly. The due dates for Forms 24Q (Salary), 26Q (Non-Salary Domestic Payments), and 27Q (Non-Resident Payments):

2. TDS Deposit Deadline vs. TDS Return Filing Deadline

Deducting tax requires two distinct actions, each with its own timeline:

• Monthly Tax Deposit: TDS collected during a month must be paid using a tax challan by the **7th of the following month** (e.g., May TDS is paid by June 7). March deductions have an extended deadline of **April 30**.
• Quarterly Return Submission: The returns summarizing these deposits are filed quarterly. Form 24Q or 26Q must be submitted by the end of the month following the quarter (July 31, October 31, January 31, May 31).

3. Penalties for Missing the Last Date of Filing

Delays in depositing tax or submitting returns attract statutory charges:

• Section 234E Late Filing Fee: **₹200 per day** for each day the return is delayed, capped at the total TDS amount collected in that quarter.
• Interest on Late Payment (Section 201(1A)): 1.5% interest per month from the date of deduction to the date of deposit.
• Interest on Late Deduction (Section 201(1A)): 1% interest per month from the date tax was deductible to the date of actual deduction.

4. Case Study: Calculating Late Fees and Interest on TDS Defaults

A company deducts **₹50,000** in TDS on professional fees u/s 194J on October 10. The company deposits the tax on December 15 (a 2-month delay) and files the Q2 Form 26Q on December 31 (61 days after the October 31 deadline).

The accountant computes the default charges:

1. Interest on Late Payment (1.5% per month): ₹1,500 (1.5% of ₹50,000 for 2 months).
2. Section 234E Late Filing Fee (₹200/day): ₹12,200 (₹200 * 61 days). Because this is less than the ₹50,000 TDS liability, the full late fee is payable.
3. Total Penalties Paid: ₹13,700 (deposited via a separate tax challan).
4. The accountant records this penalty expense in Tally:

Entry: Booking Late TDS Interest & Fees (F5 Payment Voucher)
Debit:  Interest & Penalties on Tax Account ₹13,700
Credit: Main Bank Account                         ₹13,700

5. Setting Up Penalty Ledgers in Tally Prime

To track interest expenses separately from standard business costs in Tally: