1. Who is deducting/collecting the tax:

• Government office: If the tax is deducted/collected by an office of the Government, it must be deposited on the same day of collection.
• Other taxpayers: For all other taxpayers (individuals, companies, etc.), the due dates for deposit depend on the section under which the tax was deducted/collected:
  • General rule: Tax deducted in any month (except March) must be deposited on or before the 7th of the next month.
  • Exception for March: Tax deducted in March can be deposited by 30th April.
  • Specific sections with different due dates: Certain sections have specific due dates for deposit:
    • Rent and property purchase: 30 days from the end of the month in which the tax was deducted.
    • Section 194IA (immovable property): 30 days from the end of the month in which the tax was deducted.
    • Quarterly deposit scheme: The Assessing Officer (AO) may permit quarterly deposit of tax deducted under specific sections (192, 194A, 194D, and 194H). The due dates for each quarter are:
      • June 30: By July 7
      • September 30: By October 7
      • December 31: By January 7
      • March 31: By April 30

2. Mode of payment:

• Electronic mode: For all amounts above Rs.10,000, the deposit must be made electronically through the designated Challan 281 for TCS and Challan 281/ITNS 281 for TDS.
• Physical mode: Only payments below Rs.10,000 can be made physically through authorized bank branches.

                                       EXAMPLE

The deadlines for depositing TDS and TCS vary depending on the specific type of income and the state in India. However, here’s a general overview:

General Rule:

• In most cases, for TDS deducted in any month except March, the deposit to the government must be made by the 7th of the following month.
• For TDS deducted in March, the deposit deadline is extended to 30th April.

Exceptions:

• Rent and purchase of property: For TDS deducted on rent and purchase of property, the deadline for deposit is 30 days from the end of the month in which the TDS is deducted.
• TCS on sale of goods: For TCS collected on sale of goods exceeding Rs.50 lakhs, the deadline for deposit is seven days from the date of collection.

State-specific variations:

While the general rules apply across India, some states may have specific variations in timelines or procedures for TDS/TCS deposits. Unfortunately, your question doesn’t mention a specific state. To provide a more accurate answer, I need to know which state you’re interested in.

FAQ QUESTIONS

General:

• When should TDS/TCS be deposited?
  • The deducted or collected tax should be deposited by the deductor/collector within the prescribed timeframe, following the due date for the specific section under which the TDS/TCS is applicable.
  • These timeframes typically range from within 7 days to 30 days from the date of deduction/collection, depending on the section and type of payment.
• Where can I find the specific timeframes for depositing TDS/TCS?
  • You can refer to the relevant sections of the Income Tax Act, 1961, specifically the “Section” column in TDS/TCS charts available on the official Income Tax Department website (https://www.incometax.gov.in/IEC/foportal).
  • Alternatively, you can consult a tax professional for accurate and up-to-date information.
• Is there a penalty for late deposit of TDS/TCS?
  • Yes, late deposit of TDS/TCS attracts a penalty under Section 234C of the Income Tax Act. The penalty is calculated as a percentage of the tax not deposited on time, ranging from 1% to 1.5% per month for delay.

Specific Situations:

• Timeframe for depositing TDS on salary?
  • For monthly salary payments, TDS needs to be deposited within 7 days from the end of the month in which the salary was paid.
• Timeframe for depositing TCS on sale of property?
  • TCS on sale of property under Section 194IA needs to be deposited within 10 days from the date of receipt of the property sale consideration.
• What about weekends and holidays?
  • If the due date for deposit falls on a weekend or a public holiday, the next working day will be considered the due date.
• Can the time limit for deposit be extended?
  • In certain exceptional circumstances, the Income Tax Department may consider extending the time limit for deposit upon application by the deductor/collector.

CASE LAWS

Unfortunately, there aren’t specific case laws governing the exact time of deposit for TDS/TCS under Income Tax in India. However, the timeline for depositing deducted/collected tax is specified in the Income-tax Rules, 1962, under Rule 7A. Here’s the breakdown:

For income paid or credited before March:

• Deposit the deducted/collected tax within 7 days from the end of the month in which the tax was deducted/collected.

For income paid or credited in the month of March:

• Deposit the deducted/collected tax by April 30th.

Additional Rules:

• If the due date for depositing the tax falls on a non-working day, the tax must be deposited on the next working day.
• Some specific sections of the Income Tax Act may prescribe different due dates for certain types of TDS/TCS. Always refer to the relevant section for specific timelines.
• The deductor/collector is liable to pay interest at 1.5% per month for every month or part of a month for delay in depositing the tax.

It’s important to note that these are the general rules, and there may be exceptions or specific requirements based on the type of TDS/TCS and the relevant section of the Income Tax Act.

MODE OF DEPOSIT OF TDS /TCS

1. Electronic Mode: This is the mandatory mode for:

• All corporate assessees.
• All non-corporate assessees who are subject to audit under section 44AB of the Income Tax Act, 1961.

You can make the e-payment through the authorized bank website or the government’s e-filing portal.

2. Physical Mode:

• If you are not required to use the electronic mode, you can deposit the TDS/TCS in cash or cheque at any authorized bank branch.
• You will need to fill out a Challan 281 form, which you can get from the bank or download from the website of the Income Tax Department.
• The challan will have details like your PAN, the type of tax (TDS or TCS), the amount you are depositing, and the financial year.

Here are some additional things to keep in mind:

• The due date for depositing TDS/TCS is generally within 7 days from the last day of the month in which the tax was collected.
• If you miss the due date, you will be liable to pay interest and penalty.
• You can track the status of your TDS/TCS deposits online through the e-filing portal or the TRACES website.

For more information on the modes of deposit of TDS/TCS, you can visit the website of the Income Tax Department or consult with a tax advisor.

EXAMPLE

The mode of depositing TDS and TCS depends on whether you’re a company or an individual, and the specific state you fall under. Here’s a breakdown:

1. E-payment (Mandatory for companies and high-value transactions):

• All companies and individuals falling under Section 44AB of the Income Tax Act, 1961, must deposit TDS/TCS electronically.
• This includes individuals whose income exceeds the prescribed limit (currently ₹50 lakhs for financial year 2023-24).
• E-payment can be done through the Tax Department’s e-filing portal or online banking platforms of authorized banks.
• You’ll need your PAN and TAN details for the transaction.

2. Physical Mode (Only for individuals not covered under e-payment):

• If you’re an individual not covered under the e-payment mandate, you can deposit TDS/TCS physically at authorized bank branches.
• Use Challan 281 for this purpose. You can download the challan form online and fill it out with the required details, including type of deduction/collection, state code, amount, and deductor/collector information.
• Submit the completed challan with the payment (cash or cheque) at the authorized bank branch.
• The bank will provide you with a counterfoil as proof of remittance.

Specific State Information:

While the modes of deposit remain essentially the same across states, state codes used on Challan 281 and potentially some minor procedural differences might exist. Unfortunately, you haven’t specified the state you’re interested in. Please provide the specific state where you want to deposit TDS/TCS, and I can tell you about any state-specific details or resources.

FAQ QUESTIONS

Q: Who needs to deposit TDS/TCS?

A: Any person responsible for deducting Tax Deducted at Source (TDS) or collecting Tax Collected at Source (TCS) needs to deposit the collected amount to the credit of the Central Government. This includes companies, individuals subject to audit (u/s 44AB), government agencies, and others responsible for specific transactions where TDS/TCS applies.

Q: What are the modes of deposit for TDS/TCS?

A: There are two main modes for depositing TDS/TCS:

• Electronic mode: Mandatory for all corporate assessees and non-corporate assessees subject to audit (u/s 44AB). Deposits can be made through Net Banking or authorized banking websites using Challan ITNS 281.
• Physical mode: Through challan ITNS 281 submitted at any authorized bank branch. This option is available for all deductors/collectors, but encouraged only for those not covered under mandatory e-payment.

Q: What are the due dates for deposit?

A: Due dates for deposit vary depending on the type of income and payment frequency. Generally, the tax needs to be deposited within the following timelines:

• Monthly deductions: Within 7 days from the end of the month in which the deduction was made.
• Quarterly deductions: Within 10 days from the end of the quarter in which the deduction was made.
• Other deductions: Specific due dates as prescribed by the Income Tax Act for different transactions.

Q: What information is required for challan submission?

A: Both electronic and physical challan submissions require the following information:

• Name and address of the deductor/collector
• PAN of the deductor/collector
• Type of tax (TDS/TCS)
• Period of deduction/collection
• Amount of tax deposited
• Head of account

Q: What are the consequences of delayed deposit?

A: Late deposit of TDS/TCS attracts interest at 1% per month or part of the month on the outstanding amount. Additionally, penalties may be levied under Section 221 or other relevant provisions of the Income Tax Act.

CASE LAWS

The mode of deposit of TDS/TCS under the Income Tax Act in India involves a combination of physical and electronic options, depending on the type of taxpayer and the amount deducted/collected. Here’s a breakdown:

General Modes of Deposit:

• Cash/Cheque: Both individuals and non-corporate assessees (not subject to audit) can deposit TDS/TCS in cash or cheque at designated branches of authorized banks using challan forms (26Q, 27Q, etc.).
• Electronic Payment:
  • Mandatory for:
    • All corporate assessees.
    • Non-corporate assessees subject to audit under section 44AB.
  • Optional for:
    • Other non-corporate assessees.
  • Methods:
    • Net Banking of authorized banks using challan forms.
    • Government authorized portal using challan forms or without challan (Form 24G for specific cases).

Specific Cases:

• TCS under section 206C (without challan): If TCS has been deposited without a challan under specific rules, the collector needs to submit Form 24G electronically within 15 days of the month-end.

Case Laws:

While there aren’t specific case laws solely dedicated to the mode of deposit of TDS/TCS, various judicial pronouncements have touched upon related aspects like:

• Interpretation of relevant sections of the Income Tax Act: These cases clarify the scope and applicability of TDS/TCS provisions, which indirectly impact the deposit mode.
• Validity of notifications issued by the Central Board of Direct Taxes (CBDT): Some cases dealt with challenges against CBDT notifications prescribing electronic modes for specific categories of taxpayers.
• Penalty for non-compliance: Cases highlight the consequences of depositing TDS/TCS after due date or through unauthorized methods.