TDS Return Filing
Introduction
TDS (Tax Deducted at Source) is a system where tax is deducted at the time of making a payment to a person and deposited with the government. The person making the payment is responsible for deducting TDS and submitting it along with an 'Income Tax Challan.' Apart from depositing the tax, the deductor must also file a TDS Return.
TDS returns must be filed quarterly with the Income Tax Department, including details such as:
- PAN of the deductor and deductee
- Amount of tax paid
- TDS challan details
- Other relevant information
Types of TDS Return Forms
| Form | Purpose |
|---|---|
| Form 24Q | Statement for TDS from salaries |
| Form 26Q | Statement for TDS on all payments except salaries |
| Form 27Q | Statement for TDS on income earned from dividends, interest, or other amounts payable to non-residents |
| Form 27EQ | Statement of TCS (Tax Collected at Source) |
Due Dates for TDS Payment & Filing
- Payment of TDS: The deducted TDS must be deposited by the 7th of the next month (e.g., TDS for April must be paid by May 7th).
- TDS Return Filing Due Dates:
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | 1st April – 30th June | 31st July |
| Q2 | 1st July – 30th September | 31st October |
| Q3 | 1st October – 31st December | 31st January |
| Q4 | 1st January – 31st March | 31st May |
Penalty for Non-Furnishing PAN
- If the deductee fails to furnish a valid PAN, TDS will be deducted at 20% instead of the prescribed rate.
- Providing an incorrect or inactive PAN may result in penalties of ₹10,000.
- PAN status can be checked via the Income Tax Department's 'Know Your PAN' service.
TDS Certificate
- Deductors must provide a TDS Certificate to deductees.
- TDS certificates for salary payments are issued annually, while non-salary TDS certificates are issued quarterly.
- Valid TDS certificates bear a 7-digit unique certificate number and TRACES watermark.
Claiming TDS
- The deductee must mention TDS details while filing their income tax return.
- Incorrect details may lead to discrepancies and delays in processing refunds.
- The NSDL e-Gov offers an RPU (Return Preparation Utility) for easy e-TDS filing.
Prerequisites for Uploading TDS Return
- Valid TAN registered on the e-filing portal
- Return Preparation Utility (RPU) for filing
- File Validation Utility (FVU) for data validation
- Valid DSC (Digital Signature Certificate) for authentication
- PAN linked with Aadhaar (for EVC verification)
Step-by-Step Process for E-Filing TDS Return
- Register TAN on TRACES using a previous return's token number and challan details.
- Download RPU and FVU from TIN-NSDL.
- Download CIN File (Challan Identification Number) from the NSDL website.
- Open RPU, select the appropriate form, and enter details.
- Validate Data using FVU.
- Generate and save the FVU file.
- Convert the .fvu file into a ZIP file.
- Log into E-Filing, select TDS & Upload, and submit the ZIP file along with the Digital Signature.
- Check Status on TRACES after 2-3 days.
Conclusion
TDS return filing is a crucial compliance requirement for businesses and individuals making payments subject to TDS. Timely filing ensures smooth processing and avoids penalties. With online utilities like RPU and FVU, e-filing TDS returns has become simpler and more efficient.