According to the government's TDS scheme, the tax has to be deducted at the time of making payment. A person who makes payment deducts as well as deposits TDS with the government. TDS that is deducted is usually deposited to the government by submitting an ‘income tax challan’ along with the payment. As a deductor besides depositing tax, you must also file a TDS Return.
A TDS Return is a quarterly statement that has to be submitted to the income tax department. If you are deductor then submitting TDS Return is mandatory for you. It contains details of TDS deducted and deposited by you and also include detail of PAN of the deductor and deductees, particulars of tax paid to the government.
TDS return can be filed by the employers or organizations that avail of a valid TAN (Tax collection and deduction account number). Any individual making a specified payment mentioned under the IT act is eligible for TDS (Tax deducted at source) and need to be deposit within the time for the following payments given below:
Payment of salary
Income on securities
Income by sources like winning lottery, puzzles, and others
Payment in respect of National saving scheme
Process of filing TDS Return
All the columns of Form 27A that contains a control chart must be filled. The form is then verified in hard copy with the electronically filed e-TDS return.
The total amount paid as well as the tax deducted at source have to be filled correctly and the same has to be filled in all the forms which include Form no. 27A, Form No. 24, Form no. 26 and Form no. 27
Assessees are required to mention their TAN (Tax Deduction Account number) in Form No. 27A. At the time of filing the TDS Return make sure that the details relating to depositing and deducting tax at source have been mentioned clearly.
The basic form recommended by the department for filing the e-TDS return is mandatory to follow because it brings consistency and also better understanding in filling the form.
E-TDS return has to be filled in the ASCII clean text format. You can use the software of your choice to avail of this format. Also, you have the option of using the software available at the NSDL website for filing the return online. The software is known as Return prepare Utility.
The physical return is submitted at any TIN-FC's managed by NSDL
Returns can be submitted directly at the NSDL TIN website if the returns are filed online. In case the return should be signed by the deductor through digital signature.
If all the information mentioned is accurate while submitting the return, then the provisional token/receipt number would be issued. In case the return is not accepted then a memo of non-acceptance will be issued in which the reasons for rejection will be mentioned.
1. What is TDS Return?
A TDS Return is a quarterly statement that has to be submitted to the Income Tax department. Filing a TDS Return is mandatory if you are a deductor. It contains details of TDS deducted as well as collected by you also, it includes details of PAN of the deductor and deductees and particulars of tax paid to the government.
2. Who is required to file e-TDS/TCS return?
According to the Income-tax act, 1961, all corporate and government deductors & collectors are mandatorily required to file TDS/TCS return on electronic media. However, collectors and deductors other than corporate/government can file either in physical or in electronic form.
3. Under what provision e-TDS/TCS returns should be filed?
the e-TDS return should be filed under section 206 of the Income-tax act for electronic filing of TDS return in accordance with the scheme dated August 26, 2003, notified by CBDT (Central Board of Direct Taxes) for this purpose.
the e-TCS return should be filed under section 206C of the Income-tax act for electronic filing of TCS return in accordance with the scheme dated March 30, 2005, notified by CBDT (Central board of direct taxes) for this purpose
4. What is the penalty for non-filing of TDS return?
You have to pay a penalty of Rs. 200 per day if you have not paid TDS return on time. However, a maximum penalty that taxpayers will pay would be subjected to the TDS amount.