Tax Deducted at Source or TDS return filing
Tax Deducted at Source, commonly known as TDS is one of the major sources of collecting tax by the Income Tax (I-T) Department, Government of India. Further, the deduction & collection of TDS return filing online takes place at the time when a transaction takes place under the concept of TDS. Then the tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier.
For instance, in case of payment of salary or life insurance policy, there is a deduction of TDS at the time of payment. Thereafter, the deductor, then deposits this TDS amount with the Income Tax (I-T) department. Consequently, through TDS, some portion of the tax is automatically paid to the I-T department. Accordingly, TDS is also works as a method of reducing tax evasion.
Furthermore, the deduction of TDS is in the range varying from 1% to 10%.
What is TDS return filing?
TDS Return is the summary of quarterly statements which is to be submitted with the I-T Department. In addition, this statement shows a summary of all the entries for TDS collections by the deductor. In fact, the TDS payments by the deductor to the Income Tax Authority. Furthermore, the mandatory details to file TDS returns are:
Who has to file TDS Returns?
TDS returns are to be filed by the employers/organistaions/institutions. In addition to this, those who have a valid TAN (Tax Collection and Tax Deduction Number) also have to file TDS Returns.
Steps to be followed for getting your TDS Returns filed by TaxHelpdesk Experts
Once your order is placed, TaxHelpdesk’s expert team for reviewing of documents. Thereafter, our team will check your documents within 24 working hours. Further, after reviewing documents, there will be an assignment of the Tax professional, and your order processing will take place. Then, you also will be able to check the status of the order in your account.
Transactions on which TDS is to be deducted
There is a deduction of TDS on various transactions and following are the some the examples:
- Payment of salary
- Income by way of securities
- On income by way of winning lottery, puzzles, quiz competitions and also several others
- Income from horse races
- On income by way of insurance commission
- Similarly, income by way of National Saving Schemes, etc
Who all are liable to deduct TDS?
Deductors which are liable to deduct tax are:
- Individuals
- Hindu Undivided Family
- Limited companies
- Partnership firms
- Body of individuals
- Association of people
- Local authorities
Forms of TDS return filing
Form 24Q (TDS on Salary)
- The Form 24Q is used to prepare eTDS returns for the TDS deducted on salary under Section 192 of the Income Tax Act, 1961.
- It is submitted on a quarterly basis by the deductor.
- It consists of the details of the salary and TDS deducted by the employer.
Furthermore, it comprises of two annexures
Annexure I: It consists of the details of the deductor, deductee and challans. In addition, it is required to be submitted for all the four quarters.
Annexure II: It consists of the salary details of the deductee. Moreover, it is to be submitted in the fourth and the final quarter. So, it must comprise the details of deductee’s salary of the entire financial year.
TDS on payments other than salary (Form 26Q)
- Firstly, the Form 26Q is used to prepare eTDS returns for the TDS deducted on all payments other than salary under Section 200(3), 193, and 194 of the Income Tax Act, 1961.
- Secondly, it is to be submitted on a quarterly basis by the deductor.
- Thirdly, for instance, this form is used where income on which tax is deducted includes interest on securities as well as dividends on securities, professional fees, etc.
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Lastly, if the TDS is deducted by a non-governmental deductor, then the PAN of the deductor is to be compulsorily provided. However, if the TDS is deducted by the governmental deductor, then after this ‘PANNOTREQD’ has to be mentioned on the form.
Form 27Q (TDS on payments made to NRIs)
- This TDS Form 27Q is used to prepare eTDS returns for the TDS deducted on payments, NRIs and foreigners other than salary under Section 200(3) of the Income Tax Act, 1961.
- It is to be submitted on a quarterly basis by the deductor.
- In addition, the income on which tax is deducted includes interest, bonus income or any other sum to be paid to NRIs or foreigners.
- Additionally, if the TDS is deducted by a non-governmental deductor, then the PAN of the deductor is to be compulsorily provided. However, if the TDS is deducted by the governmental deductor, then ‘PANNOTREQD’ has to be mentioned on the form.
Form 27EQ:
- This form consists of quarterly statements that furnish the details and information. In addition, of the tax collected at source, under Section 206C of the Income Tax Act, 1961.
- It is to be submitted on quarterly basis by the seller and it is mandatory to furnish TAN.
- It comprises of the statement of Tax Collected at Source (TCS), which is the tax collected by the seller. Whenever a buyer purchase certain goods or commodities, consequently the seller collects the tax from the buyer through the TCS medium. Further, this tax can be collected in any mode of payment including credit.
- In addition to the above, if the TDS is deducted by non-governmental deductor, then the PAN of the deductor is to be compulsorily provided. However, if the TDS is deducted by the governmental deductor, then ‘PANNOTREQD’ has to be mentioned on the form
How to file TDS Returns?
Due Dates for TDS return filing
Quarter | Period | Due Date |
1st Quarter | 1st April – 30th June | 31st July |
2nd Quarter | 1st July – 30th September | 31st October |
3rd Quarter | 1st October – 31st December | 31st January |
4th Quarter | 1st January – 31st March | 31st May |
penalties for late filing of tDS
E-Filing Date | Total Income < Rs. 50,000 | Total Income > Rs. 50,000 |
Up To 31st August | Rs. 0 | Rs. 0 |
1st September – 31st December | Rs. 1,000 | Rs. 1,000 |
1st January – 31st March | Rs. 1,000 | Rs. 10,000 |
FAQs
The amount of TDS can be paid online by logging on to NSDL website. And thereby, selecting 281 challan and mode of payment via net banking. Moreover, these payments are to be made before filing the eTDS return.
Every person deducting tax as per the provisions of Section 203 is required to issue a TDS certificate to the payee against the tax deducted.
The document which works as an annexure to the intimation which is to be sent to the deductor is known as TDS justification report. Further, it can be sent to deductor through mail/post.
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