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BUSINESS & COMPLIANCE

Tax Filings & Compliance

TDS Returns


TDS RETURNS


TDS means Tax Deducted at Source. It is the amount deducted from payments of various kinds such as salary, contract payment, commission etc. This deducted amount can be adjusted against the tax due of the deductee.

TDS RETURNS TDS (Tax Deducted at Source) is an indirect system of deduction of tax according to the Income Tax Act, 1961 at the point of generation of income. Tax is deducted by the payer and is remitted to the government by him on behalf of the payee.

A TDS Return is a quarterly statement which has to be submitted to the Income Tax Department of India. Submitting TDS Return is mandatory if you are a deductor. It has details of TDS deducted and deposited by you.

TAN is an alphanumeric 10 digit number required by a person who is liable to deduct TDS and file TDS return. Thus such person must make an application within a month of deducting TDS for allotment of Tax Deduction and Collection Number (TAN) in Form 49B. This number allotted is mandatory to mention in all TDS Certificates issued, returns, challans etc. If a person fails to apply for TAN he may be penalized up to Rs. 10,000/-.

Different types of TDS forms are as follows:-

Form 24Q -TDS on Salaries
Form 26Q – TDS on payments other than Salaries
Form 27Q – TDS on payments made to Non-Residents
Form 27EQ – TCS

PAN of the deductor has to be given by Non-Government deductors. It is essential to quote PAN of all deductees.

Due dates for submission of quarterly TDS Return is 31st July for Q1, 31st October for Q2, 31st January for Q3, and 31st May for last quarter.

Payment can be made online on NSDL by selecting Challan 281 and making the payment using net banking. These TDS payments need to be made before filing the TDS return.
E-payment is compulsory for all Corporate assesses & non-corporate assesses who are liable for audit u/s 44AB.
Physical payment can be made using Challan 281 in the authorized bank branch.

Every person deducting tax as per provisions of section 203 is required to issue a certificate to the payee in respect of tax deducted by him along with certain other particulars. This certificate is called TDS Certificate. Even banks deducting TDS on pensions issue TDS certificates.

Types of TDS certificate to be issued in different cases:

Salaries: Certificate is to be issued in Form 16 containing details of TDS Payment, tax deducted at source and tax calculation based on which TDS was estimated. The certificate should be issued within 31st May of next financial year.

Non Salary Payments: Certificate is to be issued in Form 16A containing details of payment and tax deducted at source. The certificate should be issued within 15 days of due date of filing the return.

TCS: Certificate to be issued in Form 27D containing the Tax Collected & Paid details. Failure to issue certificate will result in the penalty of Rs. 100 for every day the failure continues but limited to the TDS amount.

Once a tax is deducted the deductor should deposit the tax deducted with Central Government within a time limit specified in the table below :

Type of Deductor Payments made between April – Feb Payments made in March
Government Without Challan: Same day
With Challan: On or before 7th of next month
Without Challan: Same day
With Challan: On or before 7th of next month
Other than Government On or before 7th of next month On or before 30th April
Other than Government (payment u/s 194IA) On or before 30th of next month) On or before 30th of next month

Required Documents:- (All copies of documents should be self-attested by the customer)

  • Bank Statement
  • Evidence of investments
  • 16A Form and TDS Certificate
  • Tax payment Challan and Self-assessment tax
  • Evidence of Investment in property
  • Required of documents on purchase and sale of assets
  • Required TDS Certificate
  • Required home loan Certificate
  • Last year tax return copy Next

Process:

If the deductor opts for submission of return online, he would be required to sign the return through his digital signatures.

At the time of submission of the return, if your return is complete in all aspects, a provisional receipt/token no. would be issued. The provisional receipt/token no. is an acknowledgment of the fact that the return has been filed. In case of non-acceptance of your return, a non-acceptance memo would be issued stating the reasons for rejection