What Is the Penalty for Late Filing or Non-Filing of TDS Return?
What Is the Penalty for Late Filing or Non-Filing of TDS Return?
Updated for FY 2024–25 | AY 2025–26
If you're a deductor—be it an employer, business owner, or property buyer—and you fail to file your TDS return on time, you could face penalties and fees under the Income Tax Act.
So the common question is:
“What is the penalty for late or missed TDS return filing?”
Here’s a detailed and updated breakdown.
📌 What Is a TDS Return?
A TDS return is a quarterly statement that must be filed by anyone who deducts TDS (Tax Deducted at Source). It includes details like:
• PAN of the deductee
• Amount paid
• TDS deducted
• Challan details
• Type of payment (salary, contractor, rent, etc.)
Common forms include:
• Form 24Q – for salary
• Form 26Q – for non-salary domestic payments
• Form 27Q – for payments to non-residents
🚨 Penalties & Fees for Late Filing of TDS Returns
| Section | Penalty/Fee | Applicability |
| 234E | ₹200 per day of delay | Until the return is filed |
| 271H | ₹10,000 to ₹1,00,000 | For not filing OR furnishing incorrect details |
| Interest (Sec 201) | 1%/1.5% per month | For non-dedication or late payment of TDS to the government. |
Let’s break it down:
✅ Section 234E – Late Filing Fees
• ₹200 per day of delay
• Maximum = Total TDS amount payable
• Non-waivable and must be paid before filing the return
💡 Example:
• TDS return due on 31st July but filed on 15th August = 15 days delay
• Fee = 15 × ₹200 = ₹3,000
✅ Section 271H – Penalty for Non-Filing or Wrong Filing
• Ranges from ₹10,000 to ₹1,00,000
• Imposed by the Assessing Officer
• Applicable in cases of:
o Non-filing even after notice
o Incorrect PAN details
o Wrong TDS amount, section, or challan info
💡 Waiver is possible only if:
• Return is filed within 1 year
• All late fees & interest are paid
• No intentional default
✅ Section 201 – Interest on Late Deduction or Payment
• 1% per month – if TDS is not deducted on time
• 1.5% per month – if TDS is deducted but not deposited in time
• Interest is mandatory and calculated from the due date till the payment date
📅 TDS Return Due Dates for FY 2024–25
| Quarter | Period | Due Date |
| Q1 | April – June | 31st July 2024 |
| Q2 | July – September | 31st October 2024 |
| Q3 | October – December | 31st January 2024 |
| Q4 | January – March | 31st May 2024 |
✅ How to Avoid TDS Penalty?
• Set reminders for due dates
• Use trusted TDS filing software
• Cross-check PANs and challan details
• File nil returns if no deduction was made
• Always deposit TDS on time (within 7 days of the month-end)
Final Words
Failing to file or filing incorrect TDS returns can attract serious penalties under Sections 234E, 271H, and 201.
Timely and accurate TDS compliance saves you from legal hassles, extra costs, and interest.
