Individuals who have had tax deducted at source on specific types of income and reported it to the government must file TDS returns. Usually, this return must be submitted within a prescribed time frame, along with necessary details about the tax deduction, the deductor, and the deductee, among other required information.
What is a TDS Return?
TDS return is a quarterly summary or statement that outlines all TDS-related transactions within the relevant quarter. It typically includes information about the TDS collected and remitted to the Income Tax Authority by the deductor. Key details found in a TDS return statement include:
- PAN of both the deductor and deductee.
- Details of TDS paid.
- Challan information.
It is important to note that all the details included in the online TDS return form are also reflected in the payee's Form 26AS. Filing is compulsory for individuals falling within the tax slabs defined by the Income Tax Department.
Eligible individuals can typically submit TDS returns through the Income Tax Department's e-filing portal. If an individual fails to file TDS returns within one year of the due date, a penalty of at least Rs. 10,000 must be paid for the delay.
Additionally, a penalty must be paid if incorrect information is provided. As stated in Section 234, if a taxpayer misses the TDS return filing deadline, a penalty of Rs. 200 per day is imposed until the return is filed. However, the total penalty cannot exceed the TDS amount.
Who Is Eligible to File a TDS Return?
Employers and organizations with a valid TAN are authorized to file TDS returns. Individuals whose accounts are audited under Section 44AB, as well as those holding positions within the government or corporate entities, are required to file TDS returns online every quarter.
This means that the deductor could be an individual, a group of individuals, HUFs, companies, local authorities, associations of individuals, partnerships, etc.
According to the Income Tax Act, TDS is filed for the following types of payments:
- Salary income.
- Income from securities.
- Insurance commission.
- Payments made for NSC.
- Winnings from horse races.
- Winnings from lotteries, puzzles, etc.
What is the Rate of TDS Deduction?
Income from sources like salary, professional fees, commissions, rent, interest, etc., is subject to TDS deductions. The TDS rate applied depends on the type of income and the total amount earned.
In other words, the TDS rate varies depending on the income source. It's important to note that tax is levied only on the income that exceeds the specified threshold. Typically, TDS rates range from 1% to 30%, depending on the amount of taxable income.
Different TDS Return Forms
The following table provides a clear overview of various TDS return forms and their respective purposes.
|
S.No. |
Form Type |
Purpose |
| 1. |
24Q |
This form is used for reporting tax deducted at source on salary payments. |
| 2. |
26Q |
This form is used for reporting tax deducted at source on income other than salary. |
| 3. |
26QB |
This form reports TDS on payments made towards immovable property. |
| 4. |
27Q |
This form acts as a certificate for TDS on interest, dividends, and payments to NRIs and foreign companies. |
| 5. |
27EQ |
This document is used to report the Statement of TCS (Tax Collected at Source). |
Deadlines for Filing TDS Returns
The deadlines for TDS payment are listed as follows-
|
Quarter 1 |
July 31st |
|
Quarter 2 |
October 31st |
|
Quarter 3 |
January 31st |
|
Quarter 4 |
May 31st |
Steps to Download TDS Return Forms
Depending on the category of TDS paid, taxpayers should select an appropriate TDS Return Form to file. Here's a step-by-step guide to download the TDS return forms:
Step 1 – Visit the official NSDL website.
Step 2 – Click the 'Download' option.
Step 3 – From the dropdown, choose e-TDS/e-TCS.
Step 4 – Select 'Quarterly returns'.
Step 5 – Opt for 'Regular'.
Step 6 – You will be redirected to a new page where you can select the suitable TDS Return Form under the 'form' section.
Step 7 – Click on 'Download'.
After downloading, individuals should proceed with the online TDS return filing process to ensure everything is filed correctly and promptly.
How to Confirm TDS Return Status?
Here’s how you can verify TDS returns –
- Enter the necessary details in the TDS return file.
- After filing the details, update it using the portal's validation tool available on the NSDL website.
- The File Validation Utility will provide a detailed report identifying any errors in the file.
Once these steps are completed, taxpayers can make necessary corrections and verify them through the File Validation Utility.
Steps for Filing TDS Return Online
Follow these steps to upload your TDS statement –
Step 1 – Go to the official e-filing portal.
Step 2 – Select the ‘Login Here’ option.
Step 3 – Enter the TAN or user ID, password, and Captcha code.
Step 4 – Press ‘Login’.
Step 5 – Go to TDS and choose ‘Upload TDS’.
Step 6 – From the available forms, choose the relevant statement details like FVU version, form name, financial year, upload type, and quarter.
Step 7 – Press ‘Validate’ to check the details of the statement.
Step 8 – Use DSC to upload the TDS Statement.
Step 9 – Upload the ZIP file containing the TDS statement.
Step 10 – Attach the signature file.
Step 11 – Click on ‘Upload’.
To ensure the successful completion of TDS return filing process without issues, individuals must check for any specific requirements for uploading TDS returns.
What are the Requirements for Uploading TDS Returns?
Taxpayers must follow these prerequisites before uploading TDS returns –
- A valid TAN is required.
- Registration in e-filing is necessary.
- The Return Preparation Utility and File Validation Utility must be used to prepare and validate the TDS statement.
- DSC must be registered for e-filing.
- Demat account or bank account details must be provided.
- For TDS return upload via EVC, the PAN must be linked with Aadhaar.
In addition, individuals should be aware of the steps to follow if there are any errors during the TDS return filing process.
What is a Revised TDS Return?
If errors like incorrect PAN or challan details are found in the submitted TDS return, the tax amount paid to the government will not be reflected in Form 16/Form 16A/Form 26AS.
To resolve this, a revised TDS return must be filed. To file a revised return, the following points must be kept in mind –
- A revised TDS return can only be filed after the Tax Information Network system accepts the original return.
- Taxpayers can track their TDS return status using PAN and Provisional Receipt Number on the NSDL website.
- To prepare a revised TDS return, taxpayers can use the latest TDS statement. This statement can be downloaded from the TDS Reconciliation Analysis and Correction Enabling System (TRACES) website.