In the general sense, Tax Deducted At source or TDS means a tax that is required to be deducted by a certain person at a certain prescribed percentage and to be submitted to the Government of India. It was introduced with the objective tax should be collected from its very source of income rather than taxing it later. Thus, there are two parties involved – one is the Tax Deductor who is responsible to make any payment of any particular nature to any other person (i.e. Deductee) after deducting a certain portion of such payment and forwarding the amount to the Central Government. Later, the deducted can avail the credit of such amount deducted by filing a form 26AS or the TDS certificate (TDS Returns Filing) granted by the Income-Tax Department of the Central Government.
The TDS deductions are facilitated through a ten-digit mandatory ten-digit unique identification number i.e. TAN number which is required to be obtained by all persons eligible to make tax deductions at source on behalf of the Government of India. However, salaried persons are not required to obtain TAN registration or make tax deductions at sources. Apart from obtaining TAN registration and making TDS deductions, the eligible persons are also required to file TDS returns online on the NSDL-Tin portal which will be presented on form 26 AS.
Further, it is mandatory to provide the following particulars in TDS returns-
- PAN based identification of both parties.
- Actual amount of tax liability paid.
- Particulars of the TDS challan.
- TAN number.
- Other information as may be required.
Who Can File TDS Returns FILING?
Generally, business organizations employing several employees are responsible to deduct TDS from the salaries of the employees and the employer of the organization is made responsible to deduct and submit the tax to the Government. Further, any person making particular payments as prescribed under the provisions of the Income-Tax Act 1961, are required to submit TDS within prescribed time with respect to the following payments-
- Interest received from securities like shares, bonds etc.
- Lottery income i.e. income from puzzles, lotteries, horse races etc.
- Income earned from horse races.
- Income received from insurances.
- Income received from National saving schemes and similar schemes.
Due Date For TDS Return Filing
|Quarter||Period involved||Last date of filing returns|
|First||April- June||31st July|
|Third||October- December||31st January|
TDS Return Filing With Legalmart
The process of filing TDS returns is an easy and simple one involving fewer steps in which the applicant needs to provide details of their incomes received from various sources such as salary, professional fee, interest or dividend income etc. through one or more forms. However, before filing TDS returns, it is necessary for the person to obtain TAN registration that will provide a unique number for TDS form filing purposes and necessary guidance from a reliable source to assess the tax liability correctly and not to end up in the further long complex process of having to pay more amount again or to apply for refund which could be delayed.
For ensuring you file your TDS returns carefully without making any mistake, we have a large team of professionals who have their expertise in the matter of TDS related compliances which will help you to forget all your worries and hassles regarding any delay in submission or penalty and that too at reasonable prices and efficiency.
Benefits Of Filing TDS Returns
- Reducing tax evasions – TDS return filing helps the government to keep a track of people complying with tax procedures and the people avoiding payments for TDS deductions. Those who deliberately avoid payment of TDS are penalized with a penalty of Rs. 200 per day in addition to the actual tax liability.
- Widens Tax Base in the country-The Government of India has made the process of Tax payments simple and easier for the citizens to encourage timely tax payments and to discourage ill practices like tax evasion and others and will finally help in enabling tax compliances among the citizens of the country.
- A steady flow of revenue- An increase in the number of taxpayers in the country along with an increase in the tax base will help the government to receive a steady flow of income for fulfilling its various revenue needs. It will further help them to keep a close watch on people making tax payments regularly and those avoiding tax payments deliberately.
- Helps to relieve Tax burden- TDS payments are made in four instalments at different times of the year i.e. 30th June, 30th September, 30th December and 30th March, thereby reducing the burden of all the tax payments at once with smaller payments.
- Easy mode of tax payment- The process of TDS payment submission is an online process that could be completed within a short period on the Income-Tax portal.
- Acquiring Loan-Generally banks or financial institutions do ask for a TDS certificate as it provides a summary of the income as well as tax liability for any individual and also helps them to make the decision to the permissible loan limit for such individual.
- Processing Visa – Embassies or Foreign Consulates do ask to submit a TDS certificate to assess whether the person concerned is financially stable through the process of visa processing in present as well as in the past two years.
- Claim Refunds- TDS deductors are allowed to seek refunds out of the TDS deductions, if the total amount of tax paid is more than actual tax liability from the Income Tax Authorities.
- Avoid penalties – Any person who is eligible to file and submit TDS returns, and fails to do the same shall be penalized at a rate of Rs. 200 per day until the failure continues as per section234C of the Income Tax Act 1961.
What are the various types of TDS forms?
|S.No||Name of Form||Purpose||Due Date of Filing|
|1.||Form 24Q||It is required for the purpose of preparation of TDS online return for the deductions made from the salary of the individual. It includes two annexures namely, Annexure I & Annexure-II. While Annexure-I includes the particulars of the TDS deductors, deductees and the tax payment challans, Annexure-II, includes salary-related particulars of the deductees.||Annexure I needs to be submitted in each quarter of the year. Whereas, Annexure-II needs to be only submitted in the fourth quarter of the Financial year.|
|2.||Form 26Q||It is required to be submitted for providing TDS details of all the tax payments received except salary deductions including incomes like interest or dividend income, director remunerations etc.||Required to be submitted by the end of each quarter in the financial year by the TDS deductors.|
|3.||Form 27Q||It is required to be filed and submitted by persons who are not the citizen of India i.e. NRIs and other foreigners providing details of deductions made on incomes other than salary i.e. interest incomes, bonuses or any other incomes.||It is required to be submitted by the end of each quarter in the financial year.|
|4.||Form 27EQ||It is intended to furnish particulars related to TCS collections made as per the provisions of Section 206 of the Income-Tax Act 1961 and is generally required to be filed by the corporate deductors except for government deductors after furnishing unique TAN number.||It is required to be submitted by the end of each quarter of the financial year.|
|5.||Form 27A||It is not a separate form, but a summarized version of all the above-mentioned forms that seeks to provide details of all TDS tax payments made along with the deductions of the income and the amount so submitted as tax. The total amount of tax paid should tally with the total amount as prescribed in the TDS/TCS returns filed by the applicant.||It is required to be filed separately for each of the above-mentioned TDS returns.|
Document Required for TDS Return Filing
The documents required for TDS returns filing may differ on the type of form, but provided below is the list of general documents required for filing returns-
- PAN Number of the business organization.
- Scanned copies of challans of Tax payment made (on the basis of Self-assessment or advance tax, if already deposited).
- Copy of TDS certificate( where TDS certificate has been deposited by any other person).
- Bank Account related details.
- Other documents as may be required.
Penalties Related to TDS Returns
- Late Fee for furnishing TDS returns: As per the provisions of section 234E of the Income-Tax Act, any person who fails to submit TDS/TCS returns either before or on the due date shall be penalized at the rate of Rs. 200 per day till such failure continues to take place as late filing fee subject to the maximum limit of the actual tax liability.
- Penalty for Failure to file TDS/TCS returns: As per the provisions of the section 271H of the Income-Tax Act, any person who fails to file and submit TDS/TCS return either before or on the due date of filing returns, such person may be liable to pay any amount between Rs ten thousand to up to Rs. One lakh as decided by the assessing officer. It is important to note that such penalty shall be in addition with the late filing fee for delay in filing of TDS/TCS returns as prescribed under section 234E.
- Online Process for TDS Return: Provided below is the step-by-step process of filing TDS on the Income-Tax Portal-
- Step 1- Log on to the Tin-NSDL of the Income Tax online portal and log on to the portal by filing log in credentials.
- Step 2- Click & select Form 27A and fill in all the required details on the same. Where the applicant has already filled form 27A offline, he/she must verify the form along with the electronically filled TDS returns.
- Step 3- After the correct tally of the TDS liability, the applicant needs to fill the amount and pay the same. It is necessary to provide the correct TAN number of the concerned business entity carefully, as filing incorrect TAN identification number can make the process of verification difficult to be completed.
- Step 4- Further, the applicant must provide details related to the challan number, preferred mode of tax payment , date of payment etc. and others cautiously, as any mistake in providing details may cause mismatch and even lead to rejection of the TDS returns.
- Step 5-For ensuring consistency in the filing procedure, it shall be necessary for the applicant to use the basic form e-TDS for filing TDS returns. Further, the seven digit Basic Statistical Return Code (BSR Code) should be entered for the fulfilment of ease of tally of information filled.
- Step 6-Appliacnts who wish to submit TDS returns offline need to submit the same to the TIN facilitation centre, whereas the applicants filing and submitting e-TDS returns are required to submit the same on the portal of NSDL TIN.
- Step 7- On submission of the e-TDS return, a provisional acknowledgment receipt will be generated that will indicate that the TDS return has been submitted successfully. However, if the submitted return is rejected due to some reason, the applicant will receive an acknowledgement along with a memo providing the reasons for such rejection of the return. In such a case, the applicant will be required to submit the return again taking into consideration, the reasons for such rejection.
Why you Choose Legalmart?
Hence, it is important for every person eligible to fulfil TDS related compliances as they are equally advantageous for the government as a revenue source as well as for the taxpayers as it reduces the burden of tax payments. To encourage tax payments, the Government of India has eased the process of tax payments and return filings through the NSDL Tin portal.
However, before taking a further step, it is necessary to take appropriate knowledge and guidance from some reliable source having years of experience in TDS related registration and compliances and further to make a correct assessment of the actual tax liability so that the applicant doesn’t have to wait longer for making refund application or to receive the same in the bank account.
At Legalmart, we hold a qualified as well as a committed team of professionals having experience as well as updated information related to TDS related compliances including the filing of TDS returns online as well as offline and further are available 24*7 to hear and answer your queries. We offer end to end guidance as well as assistance in undertaking TDS registration and TDS Returns Filing at reasonable costs with utmost efficiency and professionalism.