Tax Deducted at Source (TDS) is an essential part of income tax compliance for businesses across India. In Kerala, businesses—whether small proprietorships, startups, partnerships, or private limited companies—are required to deduct and deposit TDS on eligible payments such as salaries, contract fees, rent, commission, and professional services. Along with deduction and deposit, timely filing of TDS returns is equally important.
Missing a TDS return filing deadline can lead to penalties, late fees, and notices from the Income Tax Department. However, if your business has missed a TDS filing due date, there’s no need to panic. In this detailed guide, we’ll explain how Kerala-based businesses can rectify missed TDS filings, the consequences of delay, and how to manage future compliance effectively.
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What Happens If You Miss the TDS Filing Deadline?
The Income Tax Department requires TDS returns to be filed quarterly in the following forms:
- Form 24Q: TDS on salaries
- Form 26Q: TDS on payments other than salaries to resident individuals
- Form 27Q: TDS on payments to non-residents
- Form 27EQ: For Tax Collected at Source (TCS)
If you miss the filing due date for any of these, the following consequences apply:
- Late Filing Fee (Section 234E): ₹200 per day until the return is filed, up to the amount of TDS payable.
- Penalty (Section 271H): ₹10,000 to ₹1,00,000 may be levied if the return is not filed within a year from the due date or if incorrect information is filed.
- Interest (Section 201): 1% per month for late deduction and 1.5% per month for late deposit of TDS.
- Ineligibility to Issue Form 16/16A: You cannot issue TDS certificates until the return is filed.
- Disallowance of Expenses (Section 40(a)(ia)): TDS defaults may lead to the disallowance of expenses in your tax computation.
Steps to Rectify Missed TDS Filing in Kerala
If your business has missed the TDS return filing deadline, the sooner you take corrective action, the better. Here’s what you should do:
Step 1: Calculate the Delay and Late Fees
Calculate the number of days by which you missed the filing deadline. Multiply that by ₹200 to determine your late filing fee under Section 234E. This amount must be paid before filing the late return.
Step 2: Pay the Late Fee and Interest
Use the Challan No. ITNS 281 to pay the applicable late filing fee and any interest for delayed deduction or deposit of TDS.
Step 3: Prepare the TDS Return Accurately
Ensure that the TDS return is prepared accurately with correct PAN details, deduction dates, payment codes, and challan information. Any mistake can lead to a rejected or defective return.
Step 4: Use TRACES and NSDL Utilities
Use the File Validation Utility (FVU) and RPU software provided by NSDL to validate your return before uploading it on the TIN-NSDL portal or through your TAN login on the Income Tax Department’s website.
Step 5: Submit the Return Online
Once validated, submit the TDS return online. Ensure acknowledgment is downloaded and kept as proof of submission. If there were previous defaults, you may also need to file correction returns.
Step 6: Download Form 16/16A
Once the TDS return is processed, log in to the TRACES portal and download TDS certificates (Form 16 for salary and Form 16A for non-salary payments) to issue to deductees.
If you need help preparing, correcting, or submitting your TDS returns, you can rely on Our Tax Partner—experts in TDS compliance and filing services in Kerala.
Common Mistakes to Avoid During Late TDS Filing
- Not paying the late filing fee before submitting the return
- Incorrect PAN or TAN entries in the return
- Mismatch in challan and deductee details
- Failure to validate the file using the FVU tool
- Delays in filing correction returns after notices
How Our Tax Partner Can Help
Our Tax Partner provides comprehensive TDS filing and rectification services for businesses and professionals across Kerala. Whether you’re a small business owner in Kochi or a mid-sized firm in Trivandrum, our expert team can handle your end-to-end TDS compliance.
Our services include:
- TAN registration and TDS compliance setup
- Calculation of interest, penalties, and late fees
- Accurate preparation and validation of TDS returns
- Online filing and correction returns
- Form 16/16A generation and TRACES support
- Year-round reminders to avoid missing deadlines again
Visit our service page here: www.ourtaxpartner.com/filing-service/tds-compliance/
Future TDS Filing Deadlines to Remember
To avoid missing future due dates, take note of the quarterly deadlines:
| Quarter | Period | Due Date for Filing |
|---|---|---|
| Q1 | April – June | 31st July |
| Q2 | July – September | 31st October |
| Q3 | October – December | 31st January |
| Q4 | January – March | 31st May |
Set up reminders or subscribe to professional services to ensure you never miss a deadline again.
Conclusion
Missing a TDS filing deadline is not the end of the road. With timely action and professional assistance, your business can rectify the lapse, minimize penalties, and stay compliant going forward. The key is not to delay corrective action and to maintain accurate records and systems for future compliance.
Let Our Tax Partner be your dedicated support for all TDS compliance needs in Kerala. From registration to filing corrections—we’ve got your back.
