Decriminalization of delayed TDS Payments till Due Date proposed by FM in Budget 2024-25

Finance Minister Nirmala Sitharaman, in the Budget 2024-25, proposed the decriminalization of delayed Tax Deducted at Source (TDS) payments until the due date. This move aims to alleviate the harsh consequences faced by taxpayers for minor delays. Currently, delayed TDS payments can lead to prosecution under Section 276B of the Income Tax Act, even if the amount is eventually paid with interest. The proposal is expected to foster a more taxpayer-friendly environment by removing criminal penalties for delays as long as the dues are settled by the specified due date​