Follow ICAI page

CAs/Students can now directly access the relevant updates relating to our Profession here is the link
 https://www.icai.org/

TDS RETURN DUE DATES

Tax Deducted at Source (TDS): Due Dates for E-Filing Of Returns

Every assessee whose TDS has been deducted will have to file his/her TDS return. These returns should be filed after particular intervals of time, and the information that must be submitted to the income tax authorities include Tax Deduction and Collection Account Number (TAN), amount deducted, Permanent Account Number (PAN), TDS payment, kind of payment, etc. The following are the TDS return forms and the purpose for which they are used:

Form Number	Purpose
Form 24Q	TDS from salaries
Form 26Q	TDS on all payments apart from salaries
Form 27Q	Subtraction of tax from dividend, interest or any other amount payable to non-residents
Form 27EQ	Collection of tax at source

Late Filing Fees

Failure to file your returns within the due date will mean that you will be subject to a late filing fee of Rs.200 per day. The fee will be charged for every day after the due date, until the date on which your return is filed. However, the maximum fees that you will have to pay will be limited to the TDS amount.

For instance, in case your TDS payable amount is Rs.7,500 on May 14, and the amount is paid on November 19, the total number of days between the aforementioned dates is 190. Therefore, Rs.200 per day for 190 days will be Rs.38,000. However, since your TDS payable amount is Rs.7,500, your late filing fees will be only Rs.7,500 and not Rs.38,000. But, an interest will be charged to you.

Penalty

In case TDS returns are filed after the due date, or there are discrepancies in the return forms, the following penalties shall become applicable:

• Penalty under Section 234E: Under this section of the Income Tax Act, the deductor will be charged Rs.200 per day until TDS is paid, but the penalty amount cannot be more than the TDS amount.
• Penalty under Section 271H: A penalty which may range between a minimum of Rs.10,000 and a maximum of Rs.1 lakh shall be applicable in case wrong details have been submitted, such as incorrect PAN, incorrect tax amount, etc.

A penalty will not be charged under Section 271H of the Income Tax Act in case TDS/TCS returns are not filed within the due date, provided that the following conditions are applicable:

• The TDS/TCS is paid to the government’s credit.
• The filing of the TDS/TCS return is done prior to the expiry of 1 year from the due date.
• The interest and late filing fees (if any) have been paid to the government’s credit.

Interest

Under Section 201(1A) of the Income Tax Act, 1961, if tax is not deducted at source, either partly or fully, an interest rate of 1% per month will be applicable from the date on which tax was supposed to be subtracted to the date on which it is actually subtracted. In case tax has been deducted, and has not been paid either partly or fully, an interest rate of 1.5% per month will be applicable from the date on which tax was deducted to the date on which it was paid.

For instance, in case the TDS payable amount of an individual is Rs.7,500 and the date on which it was deducted is January 14, and TDS was paid on May 18, the interest charged to the individual shall be Rs.7,500 x 1.5% per month x 5 months = Rs.562.5.

GST AUDIT

1. Audit

Audit under GST is the examination of records maintained by a registered dealer. The aim is to verify the correctness of information declared, taxes paid and to assess the compliance with GST.

a. Audit by Registered Dealer

Every registered dealer whose turnover during a financial year exceeds the Rs 2 crore has to get his accounts audited by a CA or a CMA.

ICAI clarifies through an announcement dated 28th September 2018 that an Internal Auditor cannot undertake GST Audit simultaneously

b. Audit by GST Tax Authorities

General Audit: The commissioner or on his orders an officer may conduct an audit of any registered dealer.

Special Audit: The department may conduct a special audit due to the complexity of the case and considering the interest of revenue. The CA or a CMA will be appointed to conduct the audit.

2. Assessment

Assessment under GST means the determination of tax liability under GST. Assessment under GST has been divided into 5 types:

a. Self Assessment

Under GST, every registered taxable person shall assess the taxes payable by them on their own, and furnish a return for each tax period.This is called self-assessment.

b. Provisional Assessment

A registered dealer can request the officer for provisional assessment if he is unable to determine the value of goods or rate of tax. The proper officer can allow the assessee to pay tax on a provisional basis at a rate or a value specified by him.

c. Scrutiny Assessment

A GST officer can scrutinize the return to verify its correctness. The officer will ask for explanations on any discrepancies noticed in the returns.

d. Summary Assessment

Summary Assessment is done when the assessing officer comes across sufficient grounds to believe any delay in showing a tax liability can harm the interest of the revenue. To protect the interest of the revenue, he can pass the summary assessment with the prior permission of the additional/joint commissioner.

e. Best Judgement Assessment

1. Assessment of non-filers of returns

If a registered taxable person does not file his return even after getting a notice, the proper officer will assess the tax liability to the best of his judgment using the available relevant material.

2. Assessment of unregistered persons

This assessment is done when a taxable person fails to obtain registration even though he is liable to do so.

The officer will assess the tax liability of such persons to the best of his judgement. The taxable person will receive a show cause notice and an opportunity of being heard.