What is TDS Return Filing?
TDS return filing is a mandatory quarterly statement submitted to the Income Tax department by deductors, alongside depositing the tax. This statement includes details such as PAN of the deductor and the deductee, tax amount paid to the government, TDS challan information, and others.
Understanding TDS:
Tax Deducted at Source (TDS) is the tax collected by the Government of India at the time of a transaction. It is deducted at the time of payment or credit, whichever is earlier, and covers various transactions like salary payments, life insurance policies, etc.
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Introduction to TAN:
TAN, or Tax Deduction and Collection Number, is a 10-digit alpha number mandatory for entities responsible for deducting tax at source. It’s required for transactions like salary payments, contractor payments, and rent exceeding Rs. 2,40,000 per year.
Eligibility for TDS Return Filing:
Organizations or employers with a valid TAN are eligible to file TDS returns. Individuals making specified payments mentioned under the Income Tax Act are required to deduct taxes at source.
Due Dates for TDS Return Filing:
TDS returns are due on the 7th of the following month after deduction. The due dates for each quarter are as follows:
- 1st Quarter: 31st July 2022
- 2nd Quarter: 31st October 2022
- 3rd Quarter: 31st January 2023
- 4th Quarter: 31st May 2023
TDS Return Filing Procedure:
Filing TDS returns online involves several steps, including filling Form 27A, verifying tax deducted and paid, mentioning TAN, providing correct challan details, and submitting returns either physically or online.
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Types of TDS Forms:
Different types of TDS forms are used based on the income of the deductee or type of deduction. These include Form 24Q for salary, Form 26Q for payments other than salary, Form 27Q for non-residents, and Form 27EQ for collection of tax at source.
TDS Certificate:
After TDS deduction, a TDS certificate is furnished to the deductee. It serves as proof of tax credit and must be preserved. TDS certificates are issued quarterly for payments other than salary and annually for salary.
Penalties for Non-Compliance:
Failure to file TDS returns on time can result in penalties ranging from Rs. 200 per day under Section 234E to penalties up to Rs. 1,00,000 for non-filing or incorrect filing.
Revised TDS Returns:
If errors are detected after filing TDS returns, a revised return can be filed. Prerequisites for submission include acceptance of the original return by the TIN central system and using the most recent consolidated TDS statement.
Claiming TDS Credit:
To claim TDS credit, deductees must mention TDS details in their income tax returns. Incorrect details may lead to discrepancies in tax credit processing.
Frequently Asked Questions
Who needs to file TDS returns?
Entities with a valid TAN who make specified payments under the Income Tax Act are required to file TDS returns.
What are the due dates for TDS return filing?
TDS returns are due on the 7th of the following month after deduction, as per the quarterly schedule.
What is TAN, and who needs it?
TAN, or Tax Deduction and Collection Number, is a 10-digit alpha number required for entities responsible for deducting tax at source.
What is the penalty for non-compliance with TDS return filing?
Penalties range from Rs. 200 per day under Section 234E to penalties up to Rs. 1,00,000 for non-filing or incorrect filing.
Can TDS returns be revised after filing?
Yes, if errors are detected, a revised TDS return can be filed after meeting certain prerequisites.