Tax Deducted at Source (TDS) is a mechanism introduced by the Income Tax Department of India. Under this, the answerable person is supposed to deduct a satisfied percent of tax before making the payment to the receiver.
The DOs and Don’ts for TDS deposit and TDS statement filing are as follows-
DOs for TDS deposit and TDS statement filing
- TDS Deposit and TDS return filing before the due date to evade last moment and late payment of interest as well as late filing fee, correspondingly. The due date for filing Form 24Q for FY 2019-20 is 31st July 2020.
- Double-check TAN and Annual year before depositing any challan.
- Always keep a check on:-
- PAN/AADHAAR of Deductee;
- CIN/ BIN in TDS statement;
- Enter accurate receipt no. of TDS statement filed;
- Quote accurate information in ANNEXURE II of FORM 24Q.
- Issue of TDS certificate to Deductee:-
- Download and produce FORM 16 from TRACES online portal;
- FORM 16 (for Financial Year 2019-20) should be issued on or before 15th August 2020;
- If any employee has had multiple employers during the financial year:-
(a). Every employer will issue a separate Part A of Form 16 for the period of employment.
(b). The issue of Part B of Form 16 may be done by both employers or only the current one, as per the choice of employee.
- Download latest quarterly TDS statement utilities (RPU & FVU) from the TIN-NSDL website for the preparation of TDS statement
Read our article:Latest guide on TDS under Section 194N of Income Tax Act: Cash Withdrawal
DOs for avoiding demand creation and Facilitating demand closure
- Always verify challan details at the TRACES website before reporting the same in the TDS statement to avoid low payment demand due to challan mismatch.
- If the application is present in 24Q and challan is paid against the same, the deductor must file correction in both Annexures-I and Annexure-II.
- Always raise the correct flag in Deductee rows as per reason for higher/lower/no deduction of TDS.
- Regularly check the demand reflecting on traces login and take necessary action for the closure of application.
DOs while seeking help from TRACES
- For guidance, go through the e-tutorials and faqs published on the TRACES website.
- Always mention complete query with the financial year, form type, and quarter details while creating tickets and mailing the grievance.
- Always provide the contact number of the concerned person who is creating the card.
- If the complaint is regarding the error in online correction/digital signature, then please attach a complete error screenshot for further analysis.
Don’ts for TDS deposit and TDS statement filing
- Don’t share the username or password of traces website with any unauthorized person.
- Don’t report pan details in TDS statement without getting a copy of PAN CARD
- Don’t round-off the TDS amount at the individual Deductee level, as the TDS CPC system does the rounding off at a statement level.
- Don’t report savings, deductions, and rebates without taking proof of the same from employees.
Extension of due dates for TDSdeposit and TDS statement filing
| Nature | Original | New |
| Filing of TDS statement- | ||
| Form 24Q, 26Q, 27Q and 27EQ of Q4 of FY 2019-20 | 31st May 2020 | 31st July 2020 |
| Form 24Q, 26Q, 27Q and 27EQ of Q1 and Q2 of FY 2020-21 | As per Rule 31A/31AA | 31st March 2021 |
| Form 26QB, QC and 26QD of February 2020 | 30th March 2020 | 31st July 2020 |
| Form 26QB, QC and 26QD of March 2020 | 30th April 2020 | 31st July 2020 |
| Form 26QB, QC and 26QD of April-Nov 2020 | 30 days from end of the month which tax will be deducted | 31st March 2021 |
| ISSUE OF TDS/TCS CERTIFICATES: | ||
| Form 16 for TDS on salary during FY 2019-20 | 15th June 2020 | 15th August 2020 |
| Form 16A for TDS on income other than salary for Q4 of FY 2019-20 | 15th June 2020 | 15th August 2020 |
| TCS certificate for Q4 of FY 2019-20 | 30th May 2020 | 15th August 2020 |
Conclusion
Each and every person who is accountable for making payment of nature enclosed under the TDS provisions of Income Tax Act, 1961[1] shall be responsible for TDS. In case you have any queries, contact Corpbiz.
Read our article:How to File TDS Return Online
