TDS Return is filed by the assessee who has deducted tax depending upon the nature of the deduction. It is filed using a tax collection and deduction account number (TAN).
The various tax deductions on a payment such as rent, insurance commission, professional fees, salary, interest, etc.
The returns are filed with NSDL software named as ETDSTCS Return Preparation Utility RPU. This is free software based on MS Excel and can be downloaded from the TIN-NSDL portal.
The return can be filed in two ways; with help of the TIN FC center or through the Income tax E-Filing portal. Deductors are required to make E-TDS or TCS statements with file formats using Protean e-Gov.
Process of TDS Return Filing Online
The online process for return filing using Form 27A with quarterly statements is given in the following steps:
- Form 27A contains the control chart with columns that shall be filled in the form.
- Fill the sections of payment of all the forms 27A, Form 24, Form 26 and Form 27 and then tally it with tax deducted at source in forms.
- Enter the tax deduction account number for verification.
- Mention the details of the deposit of TDS at the time of filing the return.
- A basic e-TDS format must enter the seven-digit bank branch code.
- There is a specific format using a return preparation utility software (e-TDS RPU) from the National securities depositories Limited (NSDL). The file must be in the ‘txt’ extension. To know how to file TDS returns online on the new income tax website, you must register on the e-filing portal.
- Sign the form using DSC and then submit it in the NSDL Tax Information Portal.
- Once the submission is made, an acknowledgment receipt with a token number is received. If the return is rejected, then the deductor will receive a non-acceptance memo with reasons.
Documents Required for Filing Return of TDS
The list of documents required by an individual for filing returns are:
- PAN card of deductee and deductor
- Amount of tax payable to the government
- Details of TDS challan
- Return prepared in return preparation utility software is downloaded for how to file TDS return online step by step as discussed above.
- The return generated (FUV file) from the RPU utility.
- Other documents, if required.
Eligibility for Filing Return of TDS
The company and employers should have a Tax deduction and collection account number (TAN) for filing a return of TDS. The following payments are given in the income tax act for deducting the tax:
- Gains from puzzles, lotteries and other games
- Insurance commission
- Income generated from securities
- Income gained by winning horse races
- Payment made against the Nation savings scheme or other schemes as prescribed.
Forms Filed for Filing Return of TDS
The following forms are filed depending on the type of transaction:
- Form 24Q is used for how to file TDS return for salary
- Form 26Q is used for filing TDS on all payments made to residents other than salary
- Form 27Q is used for filing TDS on all payments made to non-residents other than salary
- Form 26QB is used for filing TDS on the sale of property
- Form 26QC is used for filing TDS on rent
Expertise in Private Limited
Expertise in Private Limited
Details filed in the Form 26Q Online
The form 26Q has an annexure in which the following details are filed:
1. Details of challan
- Serial number of challan
- Amount of tax deducted at source
- Surcharge amount
- BSR code
- Education cess
- Interest amount
- Tax Deposit
- Demand draft number
- Code of collection
- Date of tax deposit
- The method used for tax deposit
2. Details of Payer for how to file 26Q: TDS return online
- PAN number
- Contact details
Details of Payee
- Name of the payee
- Email Address
- Full Address
- Phone number
- PAN number
Process of Validation of Return of TDS
The simple process for the validation of the return is given as follows:
- The details are as given in the file.
- The details shall be updated on the validation utility tool available on the website.
- The tool is given for free on the NSDL portal.
- For any errors occurring in the file, a file validation utility (FVU) is used for reporting the error.
- The changes are made before sending the file for the verification process.
Due Dates of Filing TDS Returns
The due dates of quarterly returns filed should be filed before the dates given below:
- The due date of the return is 31st July for the 1st Quarter i.e., starting from 1st April to 30th June.
- The due date of the return is 31st October for the 2nd Quarter i.e., starting from 1st July to 30th September.
- The due date of the return is 31st January for the 3rd Quarter i.e., starting from 1st October to 31st December.
- The due date of the return is 31st May for the 4th Quarter i.e., starting from 1st January to 31st March.
Due Dates of TDS Payment
The due date of the TDS deposit for how to file a TDS return online demo to a government office and others are given in the following points:
1. For Government office
- The due date of the TDS deposit is the same day for the government office and the amount is paid without a challan.
- The due date of the TDS deposit is the 7th day of the next month for the government office and the amount is paid with challan.
- The due date of the TDS deposit is the 7th day of the next month for the government office and the amount paid on perquisites is to be deposited by the employer.
2. For Others
- The due date of the TDS deposit is the 30th April for others and the amount is paid in the month of march.
- The due date of the TDS return deposit is the 7th of the next month for others and the amount paid in other months.
Penalty for Late Filing of Return
The late filing fees under section 234E for a deductor or collecting tax has to pay a fine of two hundred rupees per day until the return is filed. The deductor has to pay the amount until the fine is equal to the amount paid as TDS.
The penalty under section 271H is directed by an assessing officer to pay a penalty of ten thousand rupees extended to one lakh rupees. The incorrect filing of a return is also covered under this section. You can also download the TDS return filing process step by step pdf from google.
Benefits of Filing Return of TDS
The benefits of return filing are available to the government and taxpayers both. The benefits are given as follows:
- Tax Evasion
The return filing helps in tax evasion from a government perspective. It can keep a track of filing by individuals or companies and penalties are imposed in case of non-filing.
- Source of Revenue
The return filing provides a revenue source for the government. It is filed quarterly which helps in tracking the filing record.
- Tax Collection
The return filing makes the collection of tax broader. After the introduction of an online return filing system against how to file TDS returns online without software. It is filed by an employer and a certificate is given to the employee. It increases the taxpayer's count in the economy.
- Responsibility of the Tax Collection Agency
The Tax Collection Agency has to make sure that an earning person is coming as the taxpayer for payment of tax.
- No Repeated Payment of Tax
The return is filed by the deductor on the income of the deductee. Therefore, the deductee is not liable to file a return again.
- Income Flow Maintenance
It allows to maintain income flow to the government.
Frequently Asked Questions