Individuals whose tax at source on specific income has been deducted and filed with the government are required to file for TDS returns. Typically, such a return is required to be filled within a stipulated period along with essential details related to the tax deduction, the deductor and the deductee, among others.
What is TDS Return?
TDS return can be best described as the quarterly statement or summary of all TDS-related transactions made during the specific quarter. Typically, it comprises details of the TDS collected and deposited to the Income Tax Authority by the deductor. The essential details disclosed in a TDS return statement include the following –
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Deductor and deductee’s PAN.
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Particulars of TDS paid
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Challan details
Notably, all details included in the online TDS return form are also disclosed in the payee’s Form 26AS. It is mandatory for all individuals who come under the purview of tax slabs prescribed by the IT department.
Typically, eligible individuals can file TDS returns through the IT department’s e-filing portal. In case one fails to file TDS returns within 1 year of filing from the due date, he/she must pay at least Rs.10000 as a penalty for delaying the process.
Similarly, the penalty has to be paid in case one furnishes incorrect information. Notably, Section 234 states that if a taxpayer fails to file TDS return within the due date, he/she must pay a penalty of Rs.200 each day until filed. Regardless, the total liability must not exceed the TDS amount at any given point in time.
Who is Eligible for TDS Return?
Employers and organisations with a valid TAN are qualified for filing TDS returns. Individuals whose accounts are audited under Section 44AB, and hold an office under the government or companies are liable to file online TDS returns every quarter.
It means that the deductor can be – an individual, group of individuals, HUFs, limited companies, local authorities, an association of individuals, partnership firms, etc.
As per ITA, TDS is filed against these following pay-outs -
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Salary income
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Income on securities
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Insurance commission
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Pay-outs towards NSC
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Earnings generated on winning horse race
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Earnings generated on winning a lottery, puzzles, etc.
What is the Rate of TDS Deduction?
Income generated through – salaries, professional fees, commission, rent, interest earned, etc. are subject to TDS deductions. The rate of TDS levied on the earnings is based on the source of income and the total revenues generated.
In simple words, different types of income are subject to a different rate of TDS. It must be noted that tax is paid on the excess amount earned after the maximum threshold level is obtained. Generally, TDS rate ranges between 1% and 30% and relies heavily on the amount of income taxed.
TDS Return Forms
The table below offers a fair idea about the different TDS return forms and their application.
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S.No.
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Type of Form
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Purpose
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1.
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24Q
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It serves as a statement of tax deducted at source on salaries.
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2.
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26Q
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This form serves as a statement of tax deducted at source on non-salaried income.
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3.
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26QB
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It serves as a statement of tax deducted against the payment of the immovable property.
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4.
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27Q
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It is a certificate of tax deducted at source on interest, dividend payable to NRIs, and foreign companies.
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5.
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27EQ
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This document is a statement of TCS.
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Due Dates to File TDS Returns
The due dates for TDS Payment are as follows-
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Quarter 1
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31st July
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Quarter 2
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31st October
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Quarter 3
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31st Jan
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Quarter 4
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31st May
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How to Download TDS Return Forms?
Based on the category of TDS paid, taxpayers must choose a suitable TDS Returns Form to file for the same. A taxpayer can access and download TDS return forms easily by following these steps –
Step 1 – Visit NSDL’s official website.
Step 2 – Click on the ‘Download’ tab.
Step 3 – Select e-TDS/e-TCS from the available drop-down menu.
Step 4 – Click on ‘Quarterly returns’.
Step 5 – Choose ‘Regular’.
Step 6 – On being redirected to a new page, choose a suitable TDS Return Form available under the ‘form’ section.
Step 7 – Click ‘Download’.
Subsequently, individuals should proceed to find out the online TDS return filing online process to ensure that there are no hassles in due course.
How to Verify TDS Returns Fund?
Here’s how one can verify TDS Returns –
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Provide essential details in the TDS return file.
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Once the details are filed, update it on the portal validation utility tool available on NSDL website.
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The File Validation Utility will provide a detailed report about the error identified in the file.
Once these steps are followed, taxpayers can make required changes and verify them with the help of File Validation Utility.
How to File TDS Return Online?
Individuals can upload the TDS statement by using these simple steps –
Step 1 – Visit the official e-filing portal.
Step 2 – Click on the option ‘Login Here’.
Step 3 – Enter TAN or user ID, password and Captcha code.
Step 4 – Click on ‘Login’.
Step 5 – Navigate to TDS and select ‘Upload TDS’.
Step 6 – From the given Form, the taxpayer is required to select relevant statement details related to FVU version, Form name, financial year, upload type, quarter.
Step 7 – Click ‘Validate’ to verify the statement details.
Step 8 – Upload TDS Statement with the help of DSC.
Step 9 – Upload the ZIP file of the TDS statement.
Step 10 – Attach a signature file.
Step 11 – Click ‘Upload’.
To complete the TDS return filing process smoothly, individuals must find out the requirements for uploading TDS returns.
What are the Requirements for Uploading TDS Returns?
Taxpayers must ensure these pointers before uploading TDS returns –
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Taxpayers must possess a valid TAN.
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They should be registered in e-filing.
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Return Preparation Utility and File Validation Utility should be used to prepare and validate the TDS statement.
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DSC should be registered for e-filing.
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Details of Demat account or bank account should be provided.
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To upload TDS return using EVC, one must link PAN with Aadhaar.
That being discussed, individuals must also be aware of the measures to follow if there is an error in filing TDS return.
What is Revised TDS Return?
It must be noted that if an error like mistakes in challan or PAN details is identified in the submitted TDS return, the tax amount deposited with the government will not reflect in Form16/Form16A/Form26AS.
To avoid it, one must correct the errors by filing a revised TDS. One needs to keep these in mind to file the adjusted TDS returns –
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TDS Return can be filed only if the Tax Information Network central system accepts the original return.
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Taxpayers can check TDS return status with the help of PAN and Provisional Receipt Number at NSDL’s official website.
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Taxpayers can prepare revised TDS Return with the help of this new TDS statement. Such a report can be downloaded from the website of TDS Reconciliation Analysis and Correction Enabling System or TRACES.