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TDS Return Filing

About TDS Return Filing

TDS (Tax deducted at source) is an indirect system of deduction of tax according to the income TAX ACT, 1961 at the point of generation of income. Tax is deducted by the payer and is remitted to the government by him on behalf of the payee. A TDS return is a quarterly statement which has to be submitted to the Income Tax Department of India. Submitting TDS return is mandatory if you are a deducted and deposited by you. The details required to file TDS return are-

  • PAN of the detector and the deductee
  • Amount of tax paid to the government
  • TDS challan information

Penalty for delay in filling TDS return

According to section 234E, if an assessed fails to his/her TDS return before the due date a penalty of Rs 200 per day shall be paid by the assesse until the time the default continues. However, the total penalty should not exceed the TDS amount.

Know the basics

Eligibility Criteria

TDS return filing is done by organizations or employers who have availed a valid tax collection and deduction number (TAN). Any person who is making specified payments mentioned under the Income Tax Act is required to deduct the taxes at the sources and they are needed to deposit the tax within the stipulated time for making the following payments.

  • Salary Payment.
  • Income on securities.
  • Income by winning the lotteries, puzzles, and others.
  • Income from winning horseraces.
  • Insurance commissions.
  • Payment concerning the National saving scheme and many others.

Requirement for filing TDS return

  • You must possess a TAN that is registered for filling TDS online
  • Prepare the TDS statement using return preparation utility
  • Validate the TDS statement using file validation utility
  • You must have a valid digital signature which is registered for e-filing
  • You must provide the bank account details of the bank account details of the principal contact
  • Please ensure that you have linked your Aadhar card to the PAN card to upload your return via EVC.

TDS return filing procedure

  • Step 1

    Firstly, Form 27 A containing multiple columns has to be filled and in case of the hard copy of the Form, it has to be verified along with the E-TDS return that has been filed electronically.

  • Step 2

    In the next step, the tax that is deducted at the source and the total amount that has been paid needs to be correctly filled as well as tallied.

  • Step 3

    The TAN of the organizations is to be mentioned on Form 27 A. There will be difficulties in the process of verification if the mentioned TAN is incorrect.

  • Step 4

    While filing the TDS returns the appropriate challan number, the mode of the payment, and the tax details have to be mentioned. In case of the incorrect challan number or the incorrect date of the payment, there will be a mismatch and the TDS returns also need to be filed again.

  • Step 5

    To bring consistency the basic Form used for Filing the e-TDS must be used. The 7 Digit BSR has to be entered for easing the tallying process.

  • Step 6

    Physical TDS returns are to be submitted at the TIN FC, which is managed by NSDL. In case of the online filing, they can be submitted on the official website of the NSDL TIN.

  • Step 7

    If the provided information is correct then a token number or a provisional receipt is received. This is a proof that TDS return has been filed.

  • Step 8

    In case of rejection, a non-acceptance memo along with the reason for the rejection is issued and the returns have to be filed again.

TDS Return Forms

  • Form 24Q
    Quarterly statement for TDS from “salaries”
  • Form 26Q
    Quarterly statement of TDS in respect of all payments other than “salaries”
  • Form 27Q
    Quarterly statement of TDS from interest dividend or any other sum payments to non-residents.
  • Form 27QE
    Quarterly statement of collection of TAX at source.