TDS/TCS Update 2025: On March 7, 2025, the deadline for depositing Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) on their date of income is fast approaching for the financial year 2024-25. Taxes would be paid on that date, so if you owe any, make sure to deposit them on or before March 7, 2025, to avoid the penalties or legal consequences.
This article will tell you everything you need to know about TDS and TCS, who must file them, and how to deposit them in due time.
What are TDS and TCS?
TDS refers to Tax Deducted at Source and means that income tax has to be withheld by the deductor at a prescribed rate on specified payments such as salaries, interest, or professional fees, and deposit the same with the government.
Tax Collected at Source is applicable to a business selling certain commodities like liquor, scrap material, or forest products, etc., wherein the seller collects tax from the buyer at the time of sale and deposits it with the government.
Both forms of deductions are an important part of the tax structure and take their measure of tax collection from time to time, transferring the liability of lump sum tax payment.
Who should Deposit TDS/TCS?
Corporate taxpayers
- Individuals or entities subject to a tax audit under Section 44AB of the Income Tax Act
- Businesses or individuals making specified payments or sales as per tax laws
If you are any of the above, then it is a matter of law for you to deduct or collect taxes and deposit it with the government.
How to Deposit TDS/TCS?
The depositing TDS/TCS process is comparatively easy:
- Electronically Deposit: All corporate taxpayers and those under audit will need to electronically deposit all TDS/TCS.
- Challan ITNS 281: Payments can be made using challan number ITNS 281.
- Online Portal: Official Visit of the Income Tax e-filing portal to complete the procedure.
Deadline for Depositing TDS/TCS
The TDS/TCS for FY 2024-25 can be deposited until March 7, 2025. Missing the date would lead to:
- Interest Charges: Interest would be levied on late payments.
- Penalty: Penalty can be equal to the tax amount.
- Legal Action: Failure to deposit taxes can subject one to prosecution under Section 276B of the Income Tax Act.
Consequences of not Depositing TDS/TCS
There can be serious consequences for failing to deposit TDS/TCS in time: Interest on Late Payment: You will be charged interest for each day that passes late in payment. Severe Penalties: Penalty can go as high as the amount of tax. Legal Action: Failures could mean legal action, fines, or imprisonment.
How To File TDS/TCS?
The simplest process for filing TDS/TCS is online:
- Log on to the official Income Tax e-filing portal: https://eportal.incometax.gov.in
- Navigate to the e-Pay tax section.
- Follow the simple directions to fill in the payment process.
- By filing and depositing the TDS/TCS in time, you can avoid unnecessary penalties and comply with tax laws.