📢 Income Tax Alert – Quarterly TDS Return Filing for Banks (Jan–Mar 2025)

Deadline: 30th June 2025

Banks and banking institutions need to stay alert to one of the crucial income tax compliance requirements—filing the Quarterly TDS Return for non-deduction of tax at source on interest from time deposits, as mandated by Rule 31A(4)(c)(ii) of the Income-tax Rules, 1962.

🏦 Who Needs to File?

All banking companies, co-operative societies engaged in banking, and post offices that have not deducted TDS on interest paid or credited on time deposits must file a quarterly return justifying the non-deduction.

📆 Period Covered

This filing pertains to Quarter 4 (January–March 2025) of Financial Year 2024–25.

📅 Due Date

30th June 2025 is the final date to file the return for Q4. Failing to file within this timeline could attract penalties and notices.

🔍 Legal Background

As per Section 200(3) of the Income Tax Act and Rule 31A(4)(c)(ii):

Banks that do not deduct tax at source (due to exemption clauses like Form 15G/15H or threshold limits) must submit a quarterly statement of such cases.

This ensures the Income Tax Department is informed about interest payments even where tax wasn't deducted.

✅ Why This Compliance Matters

  • 🔐 Regulatory Transparency: Helps tax authorities monitor large interest payments.

  • 💰 Avoid Penalties: Non-compliance may lead to late fees under Section 234E and prosecution in severe cases.

  • 🧾 Data Matching: Ensures alignment with Form 26AS and AIS reports.

  • 📈 Audit Trail: Serves as a safeguard during departmental audits and scrutiny.

🛠 What Should Banks Do?

  1. Compile all interest payout data on time deposits where no TDS was deducted.

  2. Verify submission of Form 15G/15H (if applicable).

  3. Prepare the quarterly e-TDS return using TIN-NSDL utilities or approved software.

  4. File Form 26Q, selecting the option for “No deduction” with appropriate reason codes.

📞 Need Expert Filing Support?

At Taxla Services, we ensure your quarterly TDS return is accurately filed and compliant with the latest regulatory norms. Let our expert team handle the paperwork while you focus on banking operations.

📞 Contact us today: +91 9600076134 / 72005 09886
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com

📌 Stay ahead on compliance. Avoid penalties. Trust the experts!

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