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Kandarp Vanita
| Updated: 01 Nov, 2018 | Category: TDS Return

How to File TDS Return Online?

File TDS Return

The advent of online income tax return filing and the income tax department’s constant up-gradation of its e-filing portal has made the income tax return filing process relatively easier in recent years. Many individual salaried taxpayers and pensioners, remains a dreaded activity which they put off until the last minute even beyond 31 July, the due date for filing the income tax return (ITR). The deadline for filing ITR was extended to August 31, 2018, by the Finance Ministry.

TDS Return filing is done after deducting the TDS in your Income-tax filing. TDS or Tax Deducted at source is a source of collection of tax by the government of India at the time of transaction placed. Any company or person making a payment is required to deduct tax at the source and file the TDS Return if payment exceeds the certain threshold limits. TDS are deducted at prescribed rates by the Income-tax department.

Latest Amendments for ITR filing 2020

  • The deductor while preparing statements of deducted taxis required to furnish particulars of the amount credited or paid on which the tax was not deducted under section 197A(1F). But according to the amended rule the deductor has to additionally furnish particulars of amount that is deducted at lower rate.
  • From July 1st 2020, the deductor while preparing TDS statement furnish particulars of the amount paid on which the tax was not deducted or tax was deducted at lower rate in view of the notification issued under second and fourth provision to Section 194 N or exemption provided in third proviso to section 194 N

How to File TDS Return Online

 The mandated requirements to file TDS Return online is given below –

  • There must be a valid TAN for registering it while E-filing.
  • The TDS statements must be prepared by using the Return Preparation Utility (RPU) and must be validated by using the File Validation Utility (FVU)
  • A valid and registered DSC to upload the same while filing the TDS return.
  • Principal contact’s bank account or demat account to be given otherwise principal contact’s PAN has to be attached with the Aadhaar for uploading using EVC.
  • Form 27A provides with a control chart and all of its columns shall be filled. Then the verification of this form in hard copy form is done with the e-TDS return that is electronically filed.

The income tax department [1] and NSDL direct the taxpayer or individual to file e-TDS in different formats depending upon the nature of payments. Therefore, one can easily download the form from the websites. The following forms submit on the portal-

  • For filing annual e- TDS return- Form 24,26 and 27
  • Form 27E  is for filing annual e TCS
  • Quarterly return-  Form 24Q, 26Q, 27Q and 27EQ

Late Filing and Penalties

Late filing fees – Under section 234E, it is levied when a person fails to file the TDS or TCS return on or before the prescribed date in this reference then he shall be liable to pay the late filing fee which is a sum of amount Rs. 200 for every day until the he continues with the failure. But the late filing fees amount shall not exceed the total amount of TDS.

Penalty – Under section 271H, when a person does not file the statement of TDS/TCS return on or before the prescribed date in this reference, then assessing officer may order such person to pay the penalty under section 271H.

The minimum penalty that can be charges is of Rs. 10,000 which can maximum exceed upto Rs. 1,00,000. Moreover, this penalty shall be charged cumulatively with the late filing fees as has been prescribed under section 234E.

The advent of online income tax return filing and the income tax department’s constant up-gradation of its e-filing portal has made the income tax return filing process relatively easier in recent years. Many individual salaried taxpayers and pensioners, remains a dreaded activity which they put off until the last minute even beyond 31 July, the due date for filing income tax return (ITR). The deadline for filing ITR was extended to August 31, 2018, by the Finance Ministry.

TDS Return filing is done after deducting the TDS in your Income-tax filing. TDS or Tax Deducted at source is a source of collection of tax by the government of India at the time of transaction placed.  Any company or person making a payment is required to deduct tax at the source and file the TDS Return if payment exceeds the certain threshold limits. TDS are deducted at prescribed rates by the Income-tax department.

Latest Amendments for ITR filing 2020

  • The deductor while preparing statements of deducted taxis required to furnish particulars of the amount credited or paid on which the tax was not deducted under section 197A(1F). But according to the amended rule the deductor has to additionally furnish particulars of amount that is deducted at lower rate.
  • From July 1st 2020, the deductor while preparing TDS statement furnish particulars of the amount paid on which the tax was not deducted or tax was deducted at lower rate in view of the notification issued under second and fourth provision to Section 194 N or exemption provided in third proviso to section 194 N

How to File TDS Return Online

 The mandated requirements to file TDS Return online is given below –

  • There must be a valid TAN for registering it while E-filing.
  • The TDS statements must be prepared by using the Return Preparation Utility (RPU) and must be validated by using the File Validation Utility (FVU)
  • A valid and registered DSC to upload the same while filing the TDS return.
  • Principal contact’s bank account or demat account to be given otherwise principal contact’s PAN has to be attached with the Aadhaar for uploading using EVC.
  • Form 27A provides with a control chart and all of its columns shall be filled. Then the verification of this form in hard copy form is done with the e-TDS return that is electronically filed.

The income tax department [1] and NSDL direct the taxpayer or individual to file e-TDS in different formats depending upon the nature of payments. Therefore, one can easily download the form from the websites. The following forms submit on the portal-

  • For filing annual e- TDS return- Form 24,26 and 27
  • Form 27E  is for filing annual e TCS
  • Quarterly return-  Form 24Q, 26Q, 27Q and 27EQ

Late Filing and Penalties

Late filing fees – Under section 234E, it is levied when a person fails to file the TDS or TCS return on or before the prescribed date in this reference then he shall be liable to pay the late filing fee which is a sum of amount Rs. 200 for every day until the he continues with the failure. But the late filing fees amount shall not exceed the total amount of TDS.

Penalty – Under section 271H, when a person does not file the statement of TDS/TCS return on or before the prescribed date in this reference, then assessing officer may order such person to pay the penalty under section 271H.

The minimum penalty that can be charges is of Rs. 10,000 which can maximum exceed upto Rs. 1,00,000. Moreover, this penalty shall be charged cumulatively with the late filing fees as has been prescribed under section 234E.

TDS Payment Due Dates

Month of Deduction Quarter ending The TDS Payment due date through Challan Due Date for filing of Return from the financial year 2020-21
*For Govt. Deductor For Other Deductor
April 30th June 7th May 31st March 2021
May 7th June
June 7th July
July 30th September 7th August 31st March 2021
August 7th September
September 7th October
October 31st December 7th November 31st Jan
November 31st December 7th December
December 7th Jan
January 31st March 7th Feb 31st May (31st July for Q4 of FY 2019-20 that is ending March 2020)
February 31st March 7th March

How to Prepare file TDS Return?

  • 24Q  Form- It requires one to fill the details regarding the tax deductions at source from salary
  • 26Q  Form – This form requires one has to mention the details of tax deduction from all the sources except salary
  • 27Q Form – Here one has to present all the tax deductions from other sources of earning. For example dividend funds, interests from savings or fixed deposit, any sum payable to non-residents, etc.
  • 27EQ Form- the statement collected at the source.

Verify TDS details in Form 26AS

To start with, access to Form 26AS or tax credit statement which is available on the e-filing portal, and check whether the tax deducted by your employer and other deductors tallies with the Form 16 and TDS certificates. All the tax credits for salaries and other income should be verified with 26AS. If there is any mismatch, it should be addressed to the employer or payer of such income.

Changes to note in the ITR forms for Individual Taxpayers

ITR-1

1. More details of salary and house property income

Old ITR forms required taxpayers to report only the taxable amount but the new ITR forms require you to give detailed calculation of income from salary and house property.

2. Penalty for late filing of ITR

A new field has been added where late filers need to provide the details of late filing fees paid.

Penalty for late filing of ITR

ITR-2

1. Capital gains as a result of transfer of unquoted shares

A new field has been added for taxpayers to provide information on unquoted shares in accordance with the amendment in Section 50CA of the Finance Act, 2017.

2. Reporting gifts

A field has been added to report the amount taxable as gift.

3. Credit of refund to foreign bank account

A field has been added where NRI taxpayers can provide the details of foreign bank accounts in which they want the credit of the tax refund claimed by them.

4. Claiming credit of TDS deducted in the name of another person

A new field has been added to facilitate the claim for TDS credit where the TDS was deducted in the name of another person or from a common pool or other similar situations.

5. Change of applicability for a partner in a firm

Partners cannot use ITR-2 for assessment year 2018-19; an individual or a HUF, who is a partner in a firm, shall be required to file his ITR only in form ITR-3.

6. Removal of gender field

Taxpayers now do not need to mention their gender in the form.

Removal of gender field

The Penalty for not Complying TDS Return Regulations

This year, though, such procrastination will mean paying a huge price. The penalty for late filing is Rs 5,000, making it imperative to meet the 31 July deadline. If the delay is beyond 31 December, the fine is higher at Rs 10,000. Therefore, it’s best to kick off the process right away. Getting a grip on what all you need to file your return and some organized effort will see you through to the other side of 31 July without too many hassles.

Prosecution under section 276 (B)

The person if fails to pay the TDS (Tax deducted at source) as required by the provisions of the act to the government, then he shall be liable for the imprisonment of not less than 3 months which can extend to 7 years of rigorous imprisonment or fine or both.

Important factors to consider-

  • The first and foremost step is to procure the Tax Deduction Account Number (TAN). It used for filing the documents related to the TDS.
  • Follow the slab rate
  • The deductee receives the TDS certificates for every TDS return filing over every period.

Conclusion

The Income Tax Department of India keeps track of TDS Return Filing. In addition, it has information such as PAN, TAN, and the particulars of both. The Deductor and the deductee, pay tax to the government and give TDS challan details, etc.

  • TDS stands for tax deducted at source. TDS is an advance tax and paid by every employee and employer. It considers being the fastest and organized way of tax payment.
  • Deductor is a person or company who makes the payment and on the other hand, the deductee is the person or the company receiving the payment.

Read our article:Form 16B – TDS Certificate Regarding Sale of Property

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Kandarp Vanita

Kandarp Vanita has done masters in Corporate and Commercial Law from WB National University of Juridical Sciences. She has 3 yrs of experience in drafting legal documents & dissertations. Being a curious reader, she is also passionately into providing legal backups and comprehensive understandings in every aspect of Law to the firms.

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