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Quick and Accurate TDS Return Filing within the due deadlines
What is TDS Return Filing?
TDS return filing is the process of reporting tax deductions made at the source to the Income Tax Department. Entities deducting TDS must file returns on a quarterly basis, detailing the following:
- Amount deducted and deposited
- Type of payment (e.g., salary, interest, rent)
- PAN of the deductor and deductee
The process ensures that taxes deducted are accurately recorded and attributed to the correct taxpayers. Accurate filing is important to avoid penalties and maintain compliance with the law.
Documents Required for TDS Return Filing
For seamless online filing of TDS returns, ensure you have the following details:
- TAN Information: It is necessary for the identification of a deductor
- PAN Information: The deductor as well as his deductee’s PAN details are required so that correct tax payments can be attributed to the same
- Records of Previous TDS Filings: It is needed as a reference or to carry on some earlier record
- TDS Filing Period: This is the quarter or annual for which the return is being filed to be in line with tax periods
- Incorporation Date: The date of business incorporation may have to be provided, particularly for new filers or for the first time filling in a fiscal year
- Transaction Count: Report the total number of TDS transactions covering the period for error-free return processing
- Entity Type: It should be indicated whether the entity is a Proprietorship, Partnership, Company, or LLP as it determines applicable tax norms.
Who Should File TDS Returns?
As per the Income Tax Act of 1961, TDS returns must be filed for:
- Salary payments
- Income on securities
- Winnings from lotteries, puzzles, or game shows
- Income from horse race winnings
- Insurance commission payments (including National Savings Scheme)
Additionally, individuals, groups, HUFs, companies, local authorities, associations, and partnership firms responsible for tax deduction are required to file TDS returns.
TDS Compliance Requirements for Businesses
As per the law, the following businesses should apply for TDS regulations:
- Businesses that pay any employee a salary exceeding ₹2.5 lakhs per annum
- TDS is required if rent payments exceed ₹2.4 lakhs per annum to a landlord
- Deduct TDS for payments over ₹30,000 per bill or aggregate payments exceeding ₹1 lakh annually to contractors
- TDS is mandatory if payments to professionals exceed ₹30,000 in a financial year.
Types of TDS Return Forms
The TDS return forms are required to report any tax deductions made by businesses and individuals. Every form is categorised for different types of payments for proper compliance according to the Income Tax Act of 1961. Here are four principal TDS return forms and their specific purposes.
TDS Form 24Q
Under Section 192 of the Income Tax Act 1961, employers are mandated to deduct TDS on salary payments. Form 24Q is used to file the quarterly TDS returns for salary payments. The form entails details of the salaries paid to employees and the amount of TDS deducted from them. Essentially, Form 24Q is a quarterly statement summarising the salary payments and the TDS deducted by the employer.
TDS Form 26Q
Form 26Q is a form for filing TDS returns on non-salary payments. It records the total amount paid and TDS deducted in a particular quarter for non-salary payments. Taxpayers need to file Form 26Q on a quarterly basis, by mentioning all the details regarding interest, commission, rent, and other such payments.
Form 27Q
Form 27Q is a TDS return, particularly for amounts paid to Non-Resident Indians and other foreign entities. It contains the details of tax deducted on payments other than salary paid to non-residents. The form has to be filed quarterly, with information regarding transactions and TDS deductions collected from NRIs.
Form 27EQ
Form 27EQ is a quarterly return submitted by both corporate and government collectors for reporting TCS under Section 206C of the Income Tax Act 1961. All the TCS transactions will be subject to comprehensive details as laid down in the act.
TDS Deduction Rates
The TDS Rate Chart for the financial year 2023-24 provides a comprehensive overview of the applicable rates for various types of transactions. Here’s the content structured in a table format for better clarity and SEO optimisation:
| TDS Section | Nature of Payment | Threshold (₹) | Rate for Individual/HUF | Rate for Others |
|---|---|---|---|---|
| 192 | Payment made as salaries | ₹ 2,50,000 | Slab Rates | Slab Rates |
| 192A | Early withdrawal of EPF (Employee Provident Fund) | ₹ 50,000 | 10% | 10% |
| 193 | Interest earned on securities | ₹ 10,000 | 10% | 10% |
| 194 | Distribution of dividends | ₹ 5,000 | 10% | 10% |
| 194A | Interest from banks or post offices on deposits | ₹ 40,000 (₹ 50,000 for seniors) | 10% | 10% |
| 194A | Interest from sources other than securities | ₹ 5,000 | 10% | 10% |
| 194B | Winnings from lotteries, puzzles, or games | Aggregate of ₹ 10,000 | 30% | 30% |
| 194BA | Winnings from online games | – | 30% | 30% |
| 194BB | Winnings from horse races | ₹ 10,000 | 30% | 30% |
| 194C | Payments to contractors (per bill) | ₹ 30,000 | 1% | 2% |
| 194C | Payments to contractors (aggregate per year) | ₹ 1,00,000 | 1% | 2% |
| 194D | Commission on insurance sales (domestic companies) | ₹ 15,000 | – | 10% |
| 194D | Commission on insurance sales (non-domestic companies) | ₹ 15,000 | 5% | – |
| 194DA | Maturity proceeds of life insurance policies | ₹ 1,00,000 | 5% | 5% |
| 194EE | Payments from National Savings Scheme (NSS) | ₹ 2,500 | 10% | 10% |
| 194F | Repurchase of mutual fund units | No Limit | 20% | 20% |
| 194G | Commission on the sale of lottery tickets | ₹ 15,000 | 5% | 5% |
| 194H | Commission or brokerage fees | ₹ 15,000 | 5% | 5% |
| 194I | Rent for land, building, or furniture | ₹ 2,40,000 | 10% | 10% |
| 194I | Rent for plant and machinery | ₹ 2,40,000 | 2% | 2% |
| 194IA | Payment for transfer of immovable property (excluding agricultural land) | ₹ 50,00,000 | 1% | 1% |
| 194IB | Rent paid by individuals/HUF (not covered under section 194I) | ₹ 50,000 (monthly) | 5% | – |
| 194IC | Payments under Joint Development Agreement (JDA) | No Limit | 10% | 10% |
| 194J | Fees for professional/technical services | ₹ 30,000 | 10% | 10% |
| 194J | Royalty for cinematographic film distribution | ₹ 30,000 | 2% | 2% |
| 194K | Income from mutual fund units | ₹ 5,000 | 10% | 10% |
| 194LA | Compensation for acquiring immovable property | ₹ 2,50,000 | 10% | 10% |
| 206AA | TDS without PAN | – | Higher of specified rates or 20% | Higher of specified rates or 20% |
| 206AB | TDS for non-filers of ITR | – | Higher of 5%, twice the specified rate | Higher of 5%, twice the specified rate |
Note: The rates are subject to periodic updates. Please refer to the official Income Tax Department website for the latest information.
How to File TDS Return Online Step-by-Step
Filing TDS returns online ensures timely compliance with tax regulations and avoids penalties. This step-by-step guide simplifies the process, helping you accurately file your TDS returns while adhering to the latest guidelines. Here is a complete process:
- Step 1: Prepare the e-TDS/e-TCS return using the notified file format available at Protean TINPAN
- Step 2: Create the e-TDS/e-TCS return in ASCII text format with a .txt extension using Protean’s Return Preparation Utility (RPU) or any compatible software
- Step 3: Verify the prepared file using the File Validation Utility (FVU) provided by Protean
- Step 4: If errors are detected, correct them as per the FVU report and re-validate the file
- Step 5: Submit the validated .fvu file at a TIN-FC or upload it on the Income Tax e-Filing portal.
While step-by-step guides may seem simple, they leave room for errors that can lead to penalties or rejections. This is where expert assistance is required.
How Taxmaan can help in TDS Return Filing?
Taxmaan offers expert-assisted TDS filing services, ensuring your returns are accurate, compliant, and submitted on time.
- Step 1: Share Your Details: Provide basic information and documents to get started
- Step 2: Expert Preparation: Our professionals prepare and validate your TDS returns for accuracy and compliance
- Step 3: Hassle-Free Submission: We file your returns on time, ensuring seamless compliance with tax regulations.
Due Date for Filing TDS Return Online
The TDS return due date is crucial for ensuring compliance with tax obligations. The due dates for TDS return filing are as follows:
| Quarter | Period | TDS Return Due Date |
|---|---|---|
| Quarter 1 | April to June | 31st July |
| Quarter 2 | July to September | 31st October |
| Quarter 3 | October to December | 31st January |
| Quarter 4 | January to March | 31st May |
To fulfill TDS payment obligations effectively, it’s important to adhere to these deadlines and ensure the timely filing of TDS returns.
How to Make Correction on Your TDS Returns
If there are errors in your TDS returns, correcting them online via the TRACES portal is crucial. Follow these steps to make necessary corrections and ensure compliance:
Steps for TDS Challan Correction
- Login to TRACES website using your credentials (user ID and password)
- Go to the ‘Defaults’ tab and click on ‘Request for Correction’
- Choose the financial year, quarter, form type, and token number of the TDS return needing correction
- Select ‘Online’ as the type of correction to proceed.
- Under the ‘Default’ tab, click on ‘Go to Track Correction Request,’ enter the request number, and select ‘View Request.’
- Provide KYC details, choose the correction category, make the necessary edits, and submit the form for processing.
Steps for PAN Correction in TDS Return
- Start with the standard TDS correction steps as listed above
- Click on ‘Submit Correction Statement’ and then select ‘PAN Correction’
- Search for invalid PANs using deductee or challan information and update them with valid PAN details
- Save the corrected PAN details and download the updated consolidated file.
Filing TDS Correction Statement
- Login to TRACES and extract the consolidated TDS file
- Enter the necessary corrections in the TDS file
- Provide the provisional receipt number, validate the file using the File Validation Utility (FVU), and upload it on TIN-FC or the NSDL website.
This streamlined process helps rectify errors efficiently, ensuring your TDS returns are accurate and compliant.
Offline TDS Challan Correction Process
- Get a correction form from the bank, fill it up, and submit it
- Attach a copy of the original challan along with the request form for correction
- Submit one correction request form per challan for correction
- Carry PAN Card while making corrections in forms 280, 282, and 283
- Submit the filled-in challan correction letter to the assessing officer
- For online payment corrections, attach the original authorisation with the seal of a non-individual taxpayer along with the correction form.
Penalty for Failure in Filing the TDS Returns
Failing to file TDS returns on time can result in significant penalties, impacting your business’s compliance record. Understanding the penalties for delayed or incorrect filings helps avoid unnecessary financial setbacks and legal complications.
- Late Filing Penalty: ₹200 per day under Section 234E, accruing until the return is filed.
- Non-Filing/Incorrect Filing Penalty: ₹10,000 to ₹1,00,000 if not filed within one year or if errors are present.
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