TDS Return Overview

Filing of TDS return is not an easy task. Many tax payers are finding difficulty in submitting or filing their TDS returns. TDS is a quarterly statement given to the income tax department. TDS means tax deducted at source. According to income tax act, 1961 – TDS is an indirect system of tax deduction by government of India at the time when transaction takes place. Tax is deducted by the deductor and transferred to the government by him on behalf of deductee.

TDS return is a statement which must be submitted quarterly to the income tax department. TDS return is submitted by the deductor and it contains details of TDS deducted & deposited by you.

There are two cases where tax is deducted at the time of payment –

  1. Payment of salary
  2. Payment of life insurance policy

Tax deduction ranges from 1% to 10%. Deductor deducts the tax amount from your salary and deposits the same to the income tax department. As some of your tax portion has automatically been paid to the tax department, it is considered as a method of reducing tax evasion. It is mandatory for the deductor to submit TDS return before deadline.

The details required to file TDS return are given below –

  • PAN of deductor and the deductee.
  • Tax amount paid to the government
  • TDS challan information
  • Others, if any
What Is Included In Our Package?

Eligibility Consultation

Document Preparation

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Government Fees

Due Dates For TDS Payments

Due date is one of the most important element of TDS return as TDS should be filed before due date unless it will incur fines, penalties etc.

The due dates for TDS payments are given below in the tabular format –

Particulars Amount paid Due date of TDS deposit
Government office Others
Without challan With challan On perquisites opt to be deposited by employer Same day 7Th of next month 7th of next month
In month of march In other months 30th April 7th of next month

Eligibility Criteria for TDS Return

TDS return can be filed only by employers who are having a valid tax collection & deduction account number (TAN).

TDS needs to be deposited in time for the following payments –

  1. Salary payment
  2. Income from securities
  3. Income from winning horse races
  4. Income from winning, lottery, puzzles & others.
  5. Income from insurance commission.
  6. Payment in relation to national saving scheme & many others.

TDS Return Forms

There are various forms which are used to file TDS returns depending upon the purpose of deduction.

Some of the TDS forms are given below –

Particulars Form no.
TDS on salary Form 24Q
TDS where payee is a non-resident, foreign company Form 27Q
TDS on payment for transfer of immovable property Form 26QB
TDS in any other case Form 26Q

Form no. 27 is used to control the quarterly statements. Every deductor needs to file their quarterly statements with signed verification in form no. 27A. It summarizes the TDS return by bifurcating the total amount paid and “income tax deducted at source” matched with total in TDS return.

TDS Return Submission

Every assesse needs to file TDS return, if TDS is deducted from his or her income. It is mandatory to file TDS return before the due date or the deadline. Failing to pay TDS return before deadline will leads to fines, penalties etc.

Following persons are liable to file quarterly TDS returns online –

  1. Persons holding office under the government
  2. Persons whose accounts are audited u/s 44AB.
  3. Company

Penalty for Delay in Filing TDS Returns

As per section 234E, if a tax payer is unable to file his or her tax return before the deadline or due date, tax payer will be charged Rs.200 each day until the payment has been done. Make sure total penalty amount should not exceed the TDS amount.

Non-Filing of TDS Return

If the tax payer has not filed the tax return within 1 year from the last date of filing return or if a person provided incorrect information in the TDS return, he or she will also be liable for penalty. The penalty amount should not be less than Rs.10000 and not more than Rs.100000.

TDS Return filing Services FAQ’S

TDS means tax deducted at source. It is a source of collecting tax by the government at a time when transaction takes place.
Different types of TDS forms are as follows –
  1. Form 24Q – This form is used for filling TDS return on salary
  2. Form 26Q – This form is used for filling TDS return on payments other than salaries.
  3. Form 27 Q – This form is used for filling TDS on payments made to Non-residents
  4. Form 27EQ – TCS
PAN of the deductor has to be given by Non-government deductors. However, PAN card is a valid document for all the deductee’s.
Due dates of submitting the quarterly TDS Returns are given below –
  1. 31st July for Quarter 1
  2. 31st October for Quarter 2
  3. 31st January for Quarter 3
  4. 31st May for Quarter 4
There are two ways by which you can deposit TDS to central government –
  1. Physical payment can be made by using challan no. 281 at any authorized bank branch.
  2. Payment can be made online through net banking by choosing challan no 281.
TDS is an alphanumeric 10 digit number needed by a person who is liable to deduct TDS and file TDS return. The 10 digit number allotted is mandatory to be mentioned on all TDS certificates issued, returns, challans etc. If a taxpayer fails to apply for TAN, he will be charged up to Rs.10000 as a penalty.
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