{"id":16427,"date":"2020-09-16T14:53:56","date_gmt":"2020-09-16T09:23:56","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=16427"},"modified":"2025-02-18T16:33:57","modified_gmt":"2025-02-18T11:03:57","slug":"benefits-of-tds-return-filing-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/benefits-of-tds-return-filing-in-india\/","title":{"rendered":"All about Benefits of TDS Return Filing in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Tax Deducted at Source (TDS) is the advanced tax paid by any individual or entity for making payments, payments of professional fee, interest, salary, dividends and royalty among others as per prescribed tax slabs by the government on behalf of the payee. <a href=\"https:\/\/corpbiz.io\/tds-return-filing\" title=\"TDS Return Filing\"><strong>TDS return filing<\/strong><\/a> helps the government to prevent tax evasions. In this blog we will discuss, benefits of TDS Return Filing.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-tds-return-filing-in-india\/#Overview_of_TDS_Return_Filing\" >Overview of\nTDS Return Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-tds-return-filing-in-india\/#Categories_under_TDS_Return_Filing\" >Categories under TDS Return Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-tds-return-filing-in-india\/#Benefits_of_TDS_Return_Filing\" >Benefits of\nTDS Return Filing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-tds-return-filing-in-india\/#TDS_Return_Filing_Certificates\" >TDS Return\nFiling Certificates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-tds-return-filing-in-india\/#What_are_the_situations_when_TDS_will_not_be_deducted\" >What are the\nsituations when TDS will not be deducted?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/benefits-of-tds-return-filing-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview_of_TDS_Return_Filing\"><\/span>Overview of\nTDS Return Filing <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tax Deducted at Source or commonly known as TDS\nin India. Any company or any individual making payment needs to deduct tax at\nsource if the payment exceeds the prescribed limit by the government. The rate\nat which TDS will be deducted is decided by the Income Tax Department of India.\nThe company or individual which deducts the TDS amount is known as Deductor and\nthe individual whose tax is deducted is Deductee. It is the accountability of\nthe Deductor to deduct Tax Deducted at Source (TDS) before making the payment\nand deposit the TDS amount to the Government of India. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Categories_under_TDS_Return_Filing\"><\/span>Categories under TDS Return Filing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The employer has a Tax Collection and Deduction\nAccount Number (TAN) through which the employer file TDS return. Following are\nthe payment categories under which TDS return filing is done for businesses and\nindividuals. <\/p>\n\n\n\n<p><strong><em>Those are as follows:-<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>&nbsp;Salary of an Individual<\/li>\n\n\n\n<li>Income\nfrom Insurance Commission or income from any other source such as lottery\npuzzles, etc.<\/li>\n\n\n\n<li>National\nsaving scheme payment.<\/li>\n<\/ul>\n\n\n\n<p>If there is delay in TDS return filing the\nindividual or entity will be penalized. The eligible categories under which TDS\nreturn filing is done electronically:-<\/p>\n\n\n\n<ul>\n<li>Any Company\n<\/li>\n\n\n\n<li>Any\nperson whose account is audited under section 44AB.<\/li>\n\n\n\n<li>Any\nperson who\u2019s holding government office.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_TDS_Return_Filing\"><\/span>Benefits of\nTDS Return Filing <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tax Deducted at Source depends on the amount an\nindividual earn. Both the government and the tax payers enjoy benefits of TDS\nreturn filing. When an individual make payment via cheque, cash or credit card,\na certain amount of tax is deducted this gets deposited to Income tax\ndepartment.<\/p>\n\n\n\n<p><strong><em>Following are the benefits of TDS return filing:-<\/em><\/strong><\/p>\n\n\n\n<ul>\n<li>Filing TDS return helps the government agencies prevent people or entities from tax evasions. The government agencies keep track of the TDS filed by the individuals or entities and if someone has missed the due date of filing TDS a penalty will be imposed on such person. <\/li>\n\n\n\n<li>Filing TDS returns provide government of India a steady source of revenue, as the TDS is filed every month by the dedcutors who come under the prescribed slab. It helps the government to keep track and record the people who are filing TDS regularly.<\/li>\n\n\n\n<li>Filing TDS returns widens the base of tax collection for the government. As the TDS is filed by the employer and a certificate is provided for the same to the employee whose TDS ID filed so there are less chances of Tax evasion and increases the number of Tax payers in the country.<\/li>\n\n\n\n<li>The tax collection agencies have a huge responsibility to keep an eye on every earning person who comes under taxpaying slab to make sure that the tax is paid, so the TDS return filing makes it easy for the tax agencies as well as for the deductor as the tax is deducted at the time of payment. <\/li>\n\n\n\n<li>The TDS return is filed by the Deductor on the income of the Dedcutee so the Deductee does not have to file tax again and the job of deductee as tax is deducted automatically.<\/li>\n<\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/procedure-and-due-dates-of-filing-tds\/\">TDS Returns Filing: Due Dates and Procedure for Filing<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TDS_Return_Filing_Certificates\"><\/span>TDS Return\nFiling Certificates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Under <strong>Section 203<\/strong> of the <em>Income Tax Act<\/em>, any person who deducts TDS must provide a certificate to the respected deductee mentioning the deducted amount along with other necessary particulars. <\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter\"><img decoding=\"async\" width=\"580\" height=\"354\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-65.png\" alt=\"TDS Return Filing Certificates\" class=\"wp-image-16428\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-65.png 580w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/09\/image-65-300x183.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/figure><\/div>\n\n\n<h3 class=\"wp-block-heading\">In case of\nSalary Income <\/h3>\n\n\n\n<ul>\n<li>The\nDeductor has to provide Form 16 to the deductee and mentioning the TDS amount\ndeducted.<\/li>\n\n\n\n<li>Form\n16 has all the other necessary particulars related to deduction, computation\nand payment of tax.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">For\nNon-Salaried Cases<\/h3>\n\n\n\n<ul>\n<li>In\nnon-salaried cases Form 16 is provided by the deductor specifying all the\nnecessary details of payments, computation and deductions.<\/li>\n\n\n\n<li>Form\n16 needs to be issued by the deductor to deductee within 15 days of due date of\nTDS Return Filing.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">TCS\nCertificate<\/h3>\n\n\n\n<ul>\n<li>Tax\nCollected at Source (TCS) certificate that specifies the TDS amount collected\nand deposited with the Tax Department of India. TCS certificate is issued\nthrough Form 27D<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Depositing TDS\nto Central Government <\/h3>\n\n\n\n<ul>\n<li>The\nDeductor has to deposit the tax deducted at source to the central government by\nmaking payment via NSDL by using a physical form that can be submitted in\ncertified bank branches.<\/li>\n\n\n\n<li>By\nusing Challan 281 on the official online portal of NSDL the payment can be made\nor by net banking.<\/li>\n\n\n\n<li>Before\nTDS return filing the amount deducted as tax needs to be deposited.<\/li>\n\n\n\n<li>Under\nsection 44AB the e-payment is compulsory for all assesses.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_situations_when_TDS_will_not_be_deducted\"><\/span>What are the\nsituations when TDS will not be deducted?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To answer this question, you must know that when an individual makes a payment to the <strong><em>Reserve Bank of India<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Reserve_Bank_of_India\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> (RBI) or to the Government of India, no TDS will be deducted.<\/p>\n\n\n\n<p><em><strong>No TDS is deducted if the payment is made to the following:<\/strong><\/em><\/p>\n\n\n\n<ul>\n<li>UTI,\nLIC and other cooperative or insurance societies;<\/li>\n\n\n\n<li>Banks;<\/li>\n\n\n\n<li>State\nor Central Financial Corporations;<\/li>\n\n\n\n<li>Interest\nin Indira Vikas Party, KVP or NSC;<\/li>\n\n\n\n<li>Interest\npaid under direct tax or refund from the Income Tax Department;<\/li>\n\n\n\n<li>Interest\nreceived from savings accounts in cooperative societies;<\/li>\n\n\n\n<li>Banks\nor from recurring deposit;<\/li>\n\n\n\n<li>Interest\nreceived in NRE account;<\/li>\n\n\n\n<li>All\nother institutions notified under no TDS.<\/li>\n<\/ul>\n\n\n\n<p>Apart from these institutions, there are other where tax deducted at sources is applicable, <\/p>\n\n\n\n<div class=\"shadow1\"><strong>For Example:<\/strong> Interest earned on the compensation from MVCT (Motor Vehicles Claims Tribunal). It is the duty of the taxpayer to check whether or not tax deducted at source is applicable or not their earned income with a particle institution.<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Tax Deducted at Source or commonly known as TDS in India. Any company or any individual making payment needs to deduct tax at source if the payment exceeds the prescribed limit by the government. Benefits of TDS Return filing are enjoyed by both government and taxpayers. Tax Deducted at Source (TDS) is the advanced tax paid by any individual or entity for making contact payments, payments of professional fee, interest, salary, dividends and royalty among others as per prescribed tax slabs by the government on behalf of the payee.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/tds-under-section-194n-of-income-tax-act-cash-withdrawal\/\">Latest guide on TDS under Section 194N of Income Tax Act: Cash Withdrawal<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tax Deducted at Source (TDS) is the advanced tax paid by any individual or entity for making payments, payments of professional fee, interest, salary, dividends and royalty among others as per prescribed tax slabs by the government on behalf of the payee. TDS return filing helps the government to prevent tax evasions. In this blog [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":16450,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[237],"tags":[1002],"acf":{"service_id":"90"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":11484,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16427"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=16427"}],"version-history":[{"count":7,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16427\/revisions"}],"predecessor-version":[{"id":68780,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/16427\/revisions\/68780"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/16450"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=16427"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=16427"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=16427"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}