CBDT has extended the due date for payment or deposit of TDS for March 2021 from April 30, 2021 to May 31, 2021 vide Notification dated only in certain cases. There is a myth that the due date for payment of TDS for the month of March 2021 has been extended from April 30, 2021 to May 31, 2021. But this is not applicable in all the cases which are discussed in this article.
Any tax deducted by a deductor from the payments made to deductees is like advance tax for the deductee for which the deductee gets the credit. The tax is deducted by the deductor and deposits the TDS to the government within the prescribed due date.
Before analyzing the extension of TDS payment due date for March 2021, it is pertinent to discuss the various due date of deposit of TDS under the Income-tax law.
Time Limit for payment of TDS
As per section 200(1) and 200(2A), any tax deducted by the deductor from the payments made to the deductees shall be required to be deposited to the credit of the central government within the prescribed time limit.
Section 200(2A) applies to a government office whereas section 200(1) is applicable to other deductors.
Read More: All about Due Date for TDS/TCS Payment and TDS/TCS Returns and issue of TDS/TCS Certificates
Due date for payment of TDS from Salary Income and Non-Salary Income
Rule 30 of Income Tax Rules, 1962 prescribes the following time limit to deposit the tax deducted -
Thus in case of non-government deductors, the TDS is required to be paid by 7th day of the next month for the month when the tax is deducted except for the month of March of the previous year when the tax is deducted from March 1 to March 31 is required to be paid by 30th April of the next year. This shall apply for deduction of TDS from salary income u/s 192 as well as deduction of TDS from non-salary payment.
Due date for payment of TDS from Immovable Property u/s 194-IA
In case of deduction of income-tax under section 194-IA - TDS from immovable property shall be paid to the credit of the Central Government within a period of 30 days from the end of the month in which the deduction is made.
Due date for payment of TDS on Rent Payments by Individuals u/s 194-IB
In case of TDS on Rent Payments by Individuals u/s 194-IB shall be required to be paid to the credit of the Central Government within a period of 30 days from the end of the month in which the deduction is made. As per section 194-IB, tax shall be deducted in the month of March of the financial year or in the month of vacating the property.
Due date for payment of TDS on payments to contractors, etc. by Individuals u/s 194M
In case of TDS on payments to contractors, etc. by Individuals u/s 194M shall be required to be paid to the credit of the Central Government within a period of 30 days from the end of the month in which the deduction is made.
To sum up, we have the following categories of TDS provisions which requires deposit of the same on different dates-
Note: In case of -
(i) TDS on immovable properties u/s 194-IA
(ii) TDS on Rent Payments by Individuals u/s 194-IB
(iii) TDS on payments to contractors, etc. by Individuals u/s 194M
No TAN is required to be obtained by the deductor and TDS can be deposited with the PAN of the deductor
Now, the government has issued a press release dated 1.5.2021 as well as an Order u/s 119 vide Circular No. 8/2021 dated 30.04.2021 which contains the provisions related to extension of due date of TDS payments for the month of March 2021. The Order states that the Challan-cum-statement for tax deducted under section 194-IA (TDS on purchase of immovable property), Section 194-IB (TDS on payment of Rent by individuals) and section 194M (TDS on payment of commission, contractors, and professional by individuals) may be furnished till 31-05-2021 where the due date was 30-04-2021.
Thus the Order clearly states that there is an extension of due date of payment of TDS only in case of deduction of tax under the following provisions-
The Order states that where the due date for payment of TDS under these three provisions is 30th April, 2021, the said due date for payment of TDS is extended to May 31, 2021. Since as per Rule 30, any tax deducted under section 194-IA, under section 194-IB and under section 194M is required to be deposited within 30 days from the month in which tax is deducted, thus, any tax deducted under any of these provisions for the month of March 2021 is required to be deposited by 30th April, 2021.
Basically, it's a relief given to individual assessees. However, section 194-IA (TDS on purchase of immovable property) is applicable to non-individual assessees also.
Hence, by virtue of the Order of the CBDT only the due date for payment of TDS for tax deducted under these three provisions is extended from 30th April, 2021 to 31st May, 2021. There is no extension in payment of due date of TDS or TCS in respect of deduction of tax under any other provisions is not extended. In those cases, the due date of 30th April, 2021 shall remain at 30th April for the deduction of tax during March 2021.
Thus tax deduction by any person (individual, company, etc.) under any other provisions say, under section 194C, section 194H, section 194A, section 194J, section 194I section 195, etc. have not been given any relief and there is no extension for payment of TDS from the due date of 30th April 2021 for tax deducted in the month of March 2021. In case there is failure to deposit the TDS by 30th April 2021 all the consequences of failure to deposit the TDS by the due date will follow.
Read Also
Is TDS Return Due Date For Quarter 4 FY 2020-21 Extended
Update:
CBDT vide Circular No. 9/2021 dated 20.05.2021 once again extended certain compliances due date which includes extension of due date for furnishing TDS statements for 4th quarter of the FY 2020-21 from 31st May 2021 to 30th June 2021. However, no extension is given for the payment of TDS due dates. There is no extension for payment of TDS during April 2021 which is required to be paid by the due date of 7th May 2021. This is despite the fact that almost every state of the nation is under lockdown during this period and still continuing.
0 Comments