The Income Tax (IT) Department issued a caution to TDS (tax deducted at source) deductors to adhere to the stipulated deadline of May 31 for filing their statements and said that failing to do so would invite a penalty of Rs 200 for each day of default.

The Central Board of Direct Taxes (CBDT), has issued an advertisement in leading national dailies in this context. The advertisement said: "Attention tax deductors. The last date to file Tax Deducted at Source (TDS) statement for the January-March quarter is May 31. For delay in filing TDS statement, you pay a fine of Rs 200 for each day of default."

It also additionally mentioned that the deductors tax who have not deposited the same by the due date should do so "immediately" and register themselves at the official website www.tdscpc.gov.in.

Points to be noted:

• The deductors should correctly quote their TAN (Tax Deduction and Collection Account Number).
• Correctly quote deductees' PAN (Permanent Account Number) so that they get their due tax credit.
• PAN or TAN not quoted in the TDS statement may lead to levy of penalty.
• If there is no transaction liable to TDS/TCS (tax collected at source) for the quarter report it through the portal (www.tdscpc.gov.in) using 'declaration for non-filing' functionality.
• A penalty of Rs 200 for each day of default will be charged after the deadline has expired.

TDS is to be deducted by the deductor (employer) from the salary of the employee and has to be filed every quarter (three months period) with the income tax department.