TDS return filling

WHAT IS TDS: The concept of TDS i.e tax deducted at source was introduced with an aim to collect tax from the very source of income. A person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.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.

TDS RETURN FILING ONLINE: It is a quarterly statement required to be submitted by those persons who are liable to deduct tax at source. Every deductor is mandatorily required to file TDS return on time.

How to pay tax deducted/collected at source?

Tax deducted or collected at source shall be deposited to the credit of the Central Government by following modes:

• Electronic mode: E-Payment is mandatory for
  • All corporate assesses; and
  • All assesses (other than company) to whom provisions of section 44ABof the Income Tax Act, 1961 are applicable.
• Physical Mode: By furnishing the Challan 281 in the authorized bank branch

TDS return forms

• Form 24Q :Statement for TDS on salaries
• Form 26Q :Statement for TDS on all payments other than salaries.
• Form 26QB :TDS on payment made for transferring any immovable property
• Form 27Q :Statement for tax deduction on income received from interest, dividends, or any other sum payable to non-residents.
• Form 27EQ :Statement of collection of tax at source.

Due Dates for Payment of TDS :

Due Dates for Online TDS/TCS Returns :

Documents reuired

• Your TAN
• PAN of the deductor and the deductee
• Amount of tax paid to the government
• Details of deduction
• Last TDS filing details, if any
• Other information, if any

Benifits of TDS return filling

• It widens the base tax collection
• Ensures a steady source of revenue for the government
• Reduces the burden of lump-sum tax payment. It helps in spreading the entire tax payment over a number of months which makes it easier for the taxpayer
• Prevents people from evading taxes.
• The system of TDS is convenient for both the deductee, and the deductor because the tax is deducted automatically.

Form 16, Form 16A and Form 27D

After successful filing and processing of TDS/TCS Returns TDS Certificates will be generated and will be shared to you on quarterly basis.

Form 16A generated on quarterly basis.

Form 16 generated on yearly basis as it is Form for salaried persons.

Form 27D generated on quarterly basis.

Penalty for Late filing

According to Section234E, A penalty of Rs 200 per day shall be paid by the assessee until the time the default continues i.e until the TDS Return is not filed. However, the total penalty should not exceed the TDS amount. Late fees cannot be avoided.

Non-filing of TDS Return

If the return not filed within 1 year from the due date of filing return or if a person has furnished incorrect information, he/she shall also be liable for penalty. Amount of Penalty will be Rs. 10,000 – Rs. 1,00,000

Revised TDS Return

After submitting the return, if any error is detected, such as incorrect challan details or PAN not provided or incorrect PAN provided, the tax amount credited with the government will not reflect in the Form16/ Form 16A/ Form 26AS.

You are allowed to file a revised return if your first or original return was accepted by the said authority,
To facilitate conformity and make sure that the tax amount is properly credited and reflected in the Form 16/Form 16A/ Form 26AS, a revised TDS return has to be filed.

What is TDS refund

There is a possibility of a difference between the total amount deducted and the actual tax liability. The reasons can be:

• If the TDS is more than the actual tax liability, you are entitled to get a TDS refund.
• If TDS is less than the actual tax liability, you need to pay the difference amount.

TDS refund period and interest theorem

The excess TDS paid by you is refundable. However, the time period of the refund varies from case to case and depends on whether you have filed your IT returns during the stipulated time. If you have filed the return on time, then you can expect a refund to be credited to your account within 3-months to 6-months.  If the IT department of India fails to make the TDS refund within the stipulated time period, you are entitled to get an interest rate of 6% per annum on the refund amount. The interest will be calculated from the financial year’s first month, i.e., April. However, if the amount is less than 10% of the actual tax liability, no interest will be offered.