What is TDS Return Filing?
TDS is the abbreviation for tax deducted at Source. A Company or any person making payment is required to deduct tax at Source if the payment exceeds the prescribed threshold limit. The Income-tax Department of our country decides the rate at which the TDS will be deducted. The entity/ individual which deducts the said amount is termed as Deductor, and the person whose tax is deducted is termed as Deductee. It becomes the responsibility of the Deductor to deduct the TDS before making the payment and deposit it to the government. With Corpbiz, TDS Return filing becomes easy as we have the Auto-PAN bulk verification to avoid chances of errors in your TDS returns.
What are The Categories Under Which TDS Return is Filed in The Case of Individuals and Businesses?
The employer in a company has a valid TAN (Tax Collection and Deduction Account Number) through which they can file for TDS Return. The payment categories under which TDS Return is filed in case of individuals and businesses are:
- Salary of an individual
- Insurance Commission or the Income from any other sources like lottery puzzles etc.
- Payment from the National saving Scheme.
The assesses needs to file the penalty for delay within the due date. The categories under which there is eligibility to file the TDS Return every quarter are electronically:
- Company
- Individuals whose accounts are audited under u/s 44AB
- Individuals were holding office under the government.
TDS Return Filing
What are The Benefits of Filing The TDS Return?
According to the Income Tax Act 1961, filing TDS Return is mandatory for an individual or any business entity.
- TDS Return filing on time helps the government in tracking the records of the inflow of Income.
- The Return from the TDS Return filing is used for the welfare of the Nation.
- Since the tax is paid on a quarterly basis, so there is no burden of paying the lump sum tax at once.
What are The Documents Required For Filing The TDS Return?
Following documents needs to be submitted while filing the TDS Returns online:
- TAN (Tax Collection and Deduction Account Number) and PAN (Permanent Account Number).
- Incorporation Date of the Business.
- Period for which the TDS is to be filed.
- Last TDS filing details.
What is The Procedure For Filing The TDS Return?
The TDS Return filing contains the details of total TDS deducted and the amount deposited by Deductor, TAN/PAN of the Deductor and Deductee, challan information etc.
Following are the various types of TDS Return filing forms prescribed under TDS:
|
Prescribed Form |
Purpose Of TDS |
|
FORM 24Q |
TDS from Salary |
|
FORM 26Q |
TDS from all payments except the salary |
|
FORM 26QC |
TDS for the rent payment exceeding INR 50,000. |
|
FORM 27Q |
TDS from another source of earning such as Dividend funds, interest from savings, or fixed deposits. |
|
FORM 27EQ |
The tax collected at Source |
A signed Form 27A shall be attached to the return statement for the quarterly TDS. It serves as a summary of the TDS deducted and deposited.
How will CorpBiz Assist You in Filing The TDS Return?
The Due Date For Filing The TDS Return
Though the TDS Return can be filed online, there is a due date for each quarterly submission. For the fiscal year 2019-20,
|
Quarter |
Quarter Period |
Last date of filing |
|
First Quarter |
1st April to 30th June |
31st July 2019 |
|
Second Quarter |
1st July to 30th September |
31st July 2019 |
|
Second Quarter |
1st October to 31st December |
31st January 2020 |
|
Second Quarter |
1st January to 31st March |
31st May 2019 |
The last date for depositing the TDS Deducted under session 1941A for the month of March is on or before 30th April of 2020.
What is The Penalty if The Deductor Defaults in His Duties to File The TDS Return Filing?
Any individual or any business entity who fails to file the TDS Return by the due dates as prescribed has to pay the late filing fee as a penalty.
-
Late TDS Return filing as per section 234E
It is a sum of Rs. 200 for every day for which such TDS return filing failure continues. The late fees shall not exceed the amount of TDS Return filing. Before the TDS Return Filing, the late TDS return filing fee is required to be deposited.
-
The penalty under section 271H
The assessing officer has the power to direct the defaulter to pay the penalty, which can be a minimum of Rs. 10,000 up to the maximum of Rs.1 lakh. This penalty is in addition to late TDS return filing fees mentioned above.
Apart from the delay in TDS return filing, a penalty is also attracted in the event of the incorrect filing of the TDS Return.
Frequently Asked Questions
Any individual who is making payment for specified goods or services needs to file the TDS Return. TDS is not required to be deducted by individuals and HUF (Hindu Undivided family.
TAN is abbreviated as Tax Deduction and Collection Number. It is an alphanumeric ten-digit number for filing the TDS Return. A person needs to make an application within a month of deducting TDS for allotment of Tax Deduction and collection number in FORM 49B. If any individual fails to apply for TAN, he/she will be penalized up to INR 10,000.
Yes, the employees and deductors must submit the PAN.
- TAN is an alphanumeric ten-digit number for filing the TDS Return. Under the Section 203A of the Income Tax Act, 1961, the TAN number allotted by ITD has to be quoted on all TDS returns.
- The application of the TAN number can be made online on the NDSL site or physically by submitting the TAN Application form.
- Individuals who operate a sole proprietorship business are also required to obtain TAN and deduct tax at Source when required as per the applicable laws.
- Once a TAN is issued, it remains valid for a lifetime.
- If a person who is required to apply for and obtain TAN, does not do so, they shall be penalized with a fine of Rs.10, 000.
- Form 24Q – Tax Deduction at Salary
- Form 26Q – TDS except for the salary
- Form 26QC – Tax Deduction at source for the rent payment exceeding INR 50,000.
- Form 27Q – TDS from other sources of earning such as dividend of funds, interest from savings or fixed deposit.
- Form 27EQ – tax collected at source
- Late TDS Return filing as per the Section 234E – A sum of INR 200 every day till the TDS returns filing. Also, the late fee shall not exceed the amount of TDS return filing.
- The penalty under section 271H - A minimum of INR 10,000 and a maximum of INR 1 lakh.
Yes, there is a penalty in case of incorrect TDS return filing.
On the NSDL website, a freely downloadable return preparation utility for the preparation of e-TDS/TCS is available. However, third-party vendors have also made the software for the filing of e-TDS/TCS return.
Bank Branch Code is a unique seven-digit code allotted to each bank branch by the RBI. You need to mention the code of the bank branch where the TDS is deposited.
No, it is not required to file the Form 26Q separately. Form No. 26Q along with separate annexure has to be filed for all the payments made to residents.
One can file the TDS return online by logging in to the NSDL website. In case of any discrepancy, you can take the assistance of Corpbiz.
