TDS return filing

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*TDS return filing for one quarter

What is TDS return filing?

Apart from depositing the tax the deductor also has to do TDS return filing. TDS return filing is a quarterly statement that is to be given to the Income Tax department. It is necessary to submit the TDS returns on time. TDS return filing can be done completely online. Once the TDS returns are submitted the details will come up on Form 26 AS. 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?

Tax deducted at source or TDS is the tax that is collected by the Government of India at the time when a transaction takes place. Here, in this case, the tax is to be deducted at the time the money is credited to the payee’s account or at the time of payment whichever happens earlier.

In this case of salary payment or the life insurance policy, the tax is deducted at the time when the payment is done. The deductor is required to deposit this amount with the Income Tax Department. Through TDS a portion of the tax is paid directly to the Income Tax Department. The Tax is deducted usually over a range of 10%.

What is TAN?

TAN or the Tax Deduction and Collection Number is a mandatory 10 digit alpha number that is to be obtained by all the people who are responsible for deducting tax at source or tax collection at source on behalf of the government. Salaried individuals are not required to obtain TAN or to deduct the tax at the source.

In the case of the proprietorships businesses and other entities are required to deduct tax at the source while making certain payments like the salary, payments to the contractor, payment of rent that is exceeding Rs.2,40,000 per year. Startupportal can help in obtaining the TAN registrations.

The entities that have a valid TAN registration have to file the TDS returns quarterly. Our TDS experts can help in computing the TDS payments and file the TDS returns while complying with the TDS regulations.

Who can file TDS returns?

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.

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.

What is a TDS Certificate?

After the TDS is deducted by the deductor it is necessary to furnish the TDS Certificate. The deductee can cross-check the tax credit by viewing a valid TDS certificate from TRACES that bears a 7 digit unique certificate number and a TRACES watermark.

The TDS certificates are to be preserved by the deductee. TDS certificates on payments other than salaries are issued every quarter and the TDS certificate for the salary is provided on annual basis.

In case the deductee loses possession of the certificate he can request to get a duplicate TDS Certificate.

Penalty for failure in filing the TDS returns

If the assessee is failing to file the TDS returns before the due date then there is a penalty of Rs.200 under Section 234 E per day by the assessee until the time the default is continuing.

Non Filing the TDS returns

If the assessee has not filed the return within a year from the date of filing then the returns or if the person has furnished incorrect information then he or she will also be liable for a penalty. The penalty levied is not less than 10,000 and more than Rs. 1,00,000.

Revised TDS Returns

Once the TDS returns are submitted and errors are detected like incorrect challan details or the PAN is not provided or incorrect PAN is provided then the tax amount credit with the government will not be reflected in the Form 16A / Form 26AS. To make sure that the amount is properly credit and reflected in Form 16/ Form 16A / Form 26 AS a revised TDS return has to be filed.

Prerequisites for submission of Revised TDS returns

The revised TDS returns can be filed only when the original TDS return is accepted by the TIN central system. The assessee can check the status of the TIN Central System. The assessee can check the status of the TDS returns that are filed online by providing the required details such as the PAN and the Provisional Receipt Number/ Token number on NSDL.

The revised TDS returns have to be prepared by using the most recent consolidated TDS statement. The certificate can be downloaded from the TRACES website.

Claiming TDS return

TDS Credit can be claimed by the deductor to claim the credit of the TDS the deductee must mention the details of the TDS in his returns of income. The deductee is required to take due care to quote the correct TDS certificate number and the TDS details while filing the returns of income.

In case of incorrect details that are provided by the deductee, there will be a discrepancy with the tax credit of processing the TDS returns.

TDS Updates

New FVU and RPU Versions: Key Updates for Efficient e-TDS/TCS Filing

The latest updates to the File Validation Utilities (FVUs) and Return Preparation Utility (RPU) streamline the preparation and validation of e-TDS/TCS returns in India. Effective from April 19, 2024, and June 28, 2024, these updates ensure compliance with the latest tax laws, allow specific deductions under section 16(ia) for different tax regimes, and introduce new validation features for deductee details in Form 24Q, 26Q, 27Q, and 27EQ. Enhancements include handling lower deduction remarks, freezing/unfreezing of rows in correction statements, and updated conditions for deductee details, improving accuracy and efficiency for filing returns from FY 2005-06 onwards.