TDS Return Filing

What is TDS return filing?

The deductor must file a TDS return in addition to depositing the tax. The Income Tax division must receive a quarterly statement known as the TDS return filing. The TDS returns must be sent in by the deadline. The TDS return filing process is entirely online. Details will appear on Form 26 AS once the TDS returns have been submitted. While filing the TDS returns the various details to be mentioned are:

• PAN of the deductor and the deductee.
• Amount of tax that is paid to the government
• TDS challan information
• Others, if any.

What is TDS?

The tax that the Indian government collects when a transaction is made is known as tax deducted at source, or TDS. The tax is to be subtracted in this instance at the earliest of the time the funds are credited to the payee's account or the time the payment is made.

In this instance, the tax is subtracted at the time the payment is made for the wage or the life insurance policy. This sum must be deposited with the Department of Income Tax by the deductor. The Income Tax Department receives a portion of the tax payment directly through TDS. In most cases, a 10% deduction is made for tax.

What is TAN?

All those in charge of withholding tax at source or collecting tax at source on behalf of the government are required to get a TAN, also known as the Tax Deduction and Collection Number, which is a ten-digit alphanumeric number. Neither a TAN nor source tax withholding are necessary for people who are paid a salary.

In the case of proprietorships, companies and other organisations are required to withhold tax at the source when making certain payments, such as salaries, payments to contractors, and payments of rent that exceed Rs. 2,40,000 annually. Get the TAN registrations with the aid of IndiaFilings.

Quatriannual TDS returns must be submitted by entities with a current TAN registration. Our TDS specialists can assist in calculating TDS payments and filing TDS forms while abiding by TDS requirements.

Eligibility Criteria

Who can file TDS returns?

Employers and organisations that have obtained a legitimate tax collecting and deduction number (TAN) file TDS returns. Anyone making the payments listed below must withhold taxes at the sources and deposit them within the allotted time frames. These payments are listed in the Income Tax Act and must be made by specific individuals.

• 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.

Due Date for TDS Return filing

What are the due dates for TDS return filing?

The due date for the payment of the TDS deducted is the seventh of the next month.

Note: As per Circular 21/2022, the date of furnishing the TDS Statement in Form 26Q for the quarter ended 30th Sept 2022 has been extended to 30th Nov 2022.

TDS return filing procedure

How to file TDS returns online?

Here is the step-by-step procedure to file the TDS returns online.

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 Form

What are the different types of TDS Forms?

TDS forms are depending on the income of the deductee or the type of deductees paying taxes. The TDS forms are mentioned below:

TDS Form 24Q

Under Section 192 of the Income Tax Act 1961, an employer deducts the TDS while paying the salary to an employee. An employer has to file the Salary TDS returns in Form 24 Q, which needs to be submitted every quarter. The details of the salary that are paid to employees and the TDS deducted from the payment are to be specified in Form 24 Q. In other words, Form 24 Q is the quarterly statement of the payment that is made to the employee and the TDS is deducted that is made by the deductor.

TDS Form 26Q

On some occasions, when a taxpayer pays taxes, the payee deducts TDS. TDS information on payments made other than salaries is filed using Form 26Q. The Form lists the entire amount paid over the course of a specific quarter as well as the TDS amount that has been subtracted. Each quarter, Form 26 Q must be sent in.

Form 27Q

A TDS report or statement, Form 27 Q, contains information about the tax deducted at source from payments made to nonresident Indians and foreigners that are not salary payments. Each quarter, or before the deadline, Form 27 Q must be submitted. Details of payments made and TDS deducted by the deductor on payments made to the NRI are contained in Form 27 Q.

Form 27EQ

The entire source tax information is contained on Form 27 EQ. This form must be filed on a quarterly basis in accordance with Section 206 C of the Income Tax Act of 1961. Corporate collectors and deductors as well as government collectors and deductors must submit the Form.

What is a TDS Certificate?

It is required to provide the TDS Certificate after the deductor has deducted the TDS. A valid TDS certificate from TRACES with a 7-digit unique certificate number and the TRACES watermark is available for the deductee to inspect in order to confirm the tax credit.

The deductee shall maintain the TDS certifications. For payments other than salaries, TDS certificates are granted on a quarterly basis, while annual TDS certificates are given for salaries.

The deductionee can ask for a duplicate TDS Certificate if he misplaces the original or if it is lost.

Penalty for failure in filing the TDS returns

According to Section 234 E, the assessee is subject to a daily fine of Rs. 200 as long as the default continues if the TDS returns are not filed by the due date.

Non Filing the TDS returns

A penalty may also be assessed if the assessee failed to file the return within a year after the due date or if the person provided inaccurate information. The fine imposed ranges from 10,000 to 1,000,000 rupees.

Revised TDS Returns

The tax amount credit with the government will not appear in the Form 16A / Form 26AS once the TDS returns have been submitted and errors have been discovered, such as inaccurate challan details or the failure to give or provision of an incorrect PAN. A updated TDS return must be submitted in order to guarantee that the sum is correctly credited and shown on Forms 16/ 16A/26 AS.

Prerequisites for submission of Revised TDS returns

The initial TDS return must first be accepted by the TIN central system in order for the updated TDS returns to be submitted. The assessee has the ability to view the TIN Central System's current status. By entering the necessary information, such as the PAN and the Provisional Receipt Number/Token number, on NSDL, the assessee can track the progress of the TDS returns that have been filed online.

It is necessary to use the most recent consolidated TDS statement when preparing the revised TDS returns. The TRACES website offers a download for the certificate.

Claiming TDS return

The deductione must include information about the TDS in his income tax returns in order to be eligible for the TDS credit, which can be claimed by the deductione. When submitting income tax returns, the deductee must take care to accurately mention the relevant TDS certificate number and the TDS data.

A problem with the tax credit for processing TDS returns will occur if the deductee provides inaccurate information.