The centre in relief to the employers simplified the limitations to the companies for depositing the Tax Deducted at Source (TDS) on salaries of the employee. Starting from October 1, 2024, the employers will have additional time to deduct Tax Deducted at Source (TDS) from their employees’ salaries.
An additional time is been provided to the companies to submit TDS filings to the government under the new rules starting from 1st October.
Tax Deduction at Source is said to be the amount that employers lessen from the salaries of the employees and pay to the government. Based on applicable slab rates the employers should deduct TDS from the salary income as per the Income Tax Act.
The deadline for depositing TDS is the 7th of each month which is the month following it is deducted via the salary of the employee.
How Much Tax is Required to Pay?
The employers starting from October 1, 2024, will have an extended duration to deduct tax deducted at source (TDS) from the salary of the employees. The amended rules permit the companies to deposit TDS till the due date for TDS returns filing furnishing them an additional 20 days over the prior duration.
Earlier businesses have 60 days to deposit TDS before being reported as a default. The companies with the revised standards can provide TDS deposits to the TDS return filing due date, preventing fines.
The rules of TDS have been revised permitting the firms to provide TDS payments to the government on longer due dates. The same revised advantage to companies securing the TDS credits of employees. If the deducted taxes are not submitted by the deadline, the income tax department could send a prosecution notice to the companies for their failure to timely file the TDS return.
What are The Consequences for an Employer Who Fails to Pay TDS?
No TDS credit could be claimed by the employees if the employer deducts TDS but is unable to deposit the same. For the same cases, section 205 of the Income Tax Act safeguards the employees against double taxation, furnished that they can establish the TDS deduction from their income.
Individuals need to submit proof to the income tax department showing that tax has been deducted from their salary to claim TDS credit and prevent additional tax liabilities.
