Here are the details of the penalties for late filing of the TDS returns:
The person who has to collect or deduct the TDS is liable to pay a fine of ₹200/day for each day until they have filed the TDS. The deductor will have to pay the fine for each day till they file the TDS and until the amount of fine that has to be paid is equal to the TDS amount that they have to pay.
For example, suppose you have deducted the TDS of ₹7000 on 12th May 2023, and you finally file the TDS on 18th November 2023 instead of the Q1 deadline of 31st July 2023.
The total number of days that you have delayed is 110 days (from 1st August to 18th November).
The amount that you are liable to pay as a fine will come out to be ₹22000 (200x109 days), but as the amount of TDS is ₹7000, you will have to pay 7000 as a fine.
Also, you will have to pay an interest on the deposit that you have delayed.
If the TDS statement is not filed on the due date, the assessing officer might ask the deductor to pay a minimum fine of ₹10,000 that can go up to ₹1 lakh. This amount is in addition to the penalty that is paid under Section 243E.