TDS return filing​
Get your TDS return form 24Q, 26Q, 27Q, 27EQ filed by CA
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Introduction
TDS stands for Tax Deducted at Source, which is a system implemented by the Income Tax Department of India to collect tax from the source of income. TDS is deducted from the income at a specified rate by the person responsible for making the payment. TDS return filing is the process of submitting the details of TDS deducted by a person or entity to the Income Tax Department.
TDS return filing is important for both the deductor and the deductee. It ensures that the tax is collected at the source and deposited with the government, and helps to prevent tax evasion. For the deductee, TDS return filing serves as a means to claim the credit of TDS deducted while computing their total tax liability.
What is TDS return filing?
TDS (Tax Deducted at Source) is a tax collection mechanism in which the payer is required to deduct tax at the source from the payment made to the recipient. TDS is deducted from various incomes, such as salary, interest, rent, commission, etc. and deposited with the government on behalf of the recipient.
TDS return filing is the process of submitting the details of TDS deducted by the payer to the Income Tax Department. TDS returns are required to be filed on a quarterly basis, and failure to file the returns can attract penalties and interest charges.
Types of TDS returns
There are different types of TDS returns based on the type of payment made:
1. Form 24Q:
Form 24Q is the TDS return that needs to be filed by employers who deduct TDS from employee salaries. It includes details of TDS deductions made on salaries and the details of employees such as their name, PAN, and the amount of TDS deducted. The due dates for filing Form 24Q are as follows:
2. Form 26Q:
Form 26Q is the TDS return that needs to be filed by individuals and businesses who have deducted TDS on payments made to contractors or freelancers. It includes details of TDS deductions made and the name, PAN, and other details of the deductee. The due dates for filing Form 26Q are as follows:
3. Form 27Q:
Form 27Q is the TDS return that needs to be filed by individuals and businesses who have deducted TDS on payments made to non-residents. It includes details of TDS deductions made and the name, PAN, and other details of the deductee. The due dates for filing Form 27Q are as follows:
4. Form 27EQ
Form 27EQ is the TDS return that needs to be filed by individuals and businesses who have deducted TDS on payments made for various goods and services. It includes details of TDS deductions made and the name, PAN, and other details of the deductee.
TDS return filing due date
Here are the TDS return filing due dates for FY 2021-22 (AY 2022-23):
Quarter | Due Date |
Quarter 1 (April to June) | July 31, 2022 |
| October 31, 2022 |
Quarter 3 (October to December) | January 31, 2023 |
Quarter 4 (January to March) | May 31, 2023 |
Who is required to deduct TDS?
As per the Income Tax Act, 1961, the following entities are required to deduct TDS (Tax Deducted at Source) from the payments made by them:
- Individuals and HUFs (Hindu Undivided Families) whose accounts are required to be audited as per Section 44AB of the Income Tax Act, 1961.
    2. Companies (both private and public).
    3. Partnerships, including LLPs (Limited Liability Partnerships).
    4. Local authorities, such as municipal corporations, panchayats, and so on.
    5. Statutory corporations, such as LIC, RBI, and so on.
    6. Any other person or entity as notified by the Income Tax Department.
TDS payment due date
The due date for TDS payment varies based on the type of deductor and the month in which the deduction is made. Here are the due dates for TDS payment:
1. For Government deductors:
TDS deducted in March must be paid on or before 30th April of the same year. For other months, the TDS deducted must be paid on or before 7th day of the next month.
2. For Non-Government deductors:
- For TDS deducted in March – 30th April
- For TDS deducted in any other month – 7th day of the next month
Penalties for non-filing of TDS return:
- Late filing fees: If a person or entity fails to file the TDS return within the due date, a late filing fee is levied. The late filing fee is Rs. 200 per day until the return is filed, subject to a maximum of the TDS amount.
    2. Interest on late payment: If the TDS deducted is not deposited within the specified due dates, interest is charged at the rate of 1.5% per month.
    3. Penalty for non-filing: If the TDS return is not filed within one year from the due date of filing, a penalty of Rs. 10,000 to Rs. 1 lakh may be levied.
Steps for filing TDS return
Filing TDS return is an important process that needs to be completed by anyone who has deducted tax at source from payments made to employees, contractors, and other parties. It is important to file TDS return accurately and within the due date to avoid penalties and other legal consequences. Here are the steps to file TDS return:
1. Register for TAN:
The first step in TDS return filing is to obtain a Tax Deduction and Collection Account Number (TAN). TAN is a unique 10-digit alphanumeric number issued by the Income Tax Department to individuals and entities responsible for deducting or collecting taxes at source. TAN can be obtained online by filling Form 49B on the NSDL website.
2. Download the relevant form:
The next step is to download the relevant TDS return form from the Income Tax Department website. The type of TDS return form to be used depends on the nature of payment, type of deductee, and the quarter for which the return is being filed.
3. Enter details of TDS deducted:
Once the form is downloaded, enter the details of TDS deducted from payments made during the quarter. This includes details such as the name and PAN of the deductee, TDS amount, type of payment, and date of payment. It is important to ensure that all details are entered accurately.
4. Verify TDS statements:
Before submitting the TDS return, it is important to verify the TDS statements to ensure that all details are accurate. This can be done using a utility provided by the Income Tax Department or through a third-party software.
5. Submit the TDS return:
Once the TDS statements are verified, the next step is to submit the TDS return. This can be done online through the Income Tax Department website or through a TIN facilitation center.
6. Payment of TDS:
After submitting the TDS return, the next step is to make the payment of TDS if any is due. TDS can be paid online through the Income Tax Department website or through authorized banks.
7. Issue TDS certificates:
After filing the TDS return, it is important to issue TDS certificates to the deductees. This can be done using Form 16 for employees and Form 16A for non-salary payments.
By following these steps, one can easily file their TDS return accurately and within the due date. It is important to ensure that all details are entered accurately and that the TDS return is submitted on time to avoid any penalties or legal consequences.
Consequences of non-compliance
Non-compliance with TDS return filing and related regulations can lead to various consequences. Some of the possible consequences of non-compliance are:
1. Penalty:
The Income Tax Department may impose a penalty for non-filing or delayed filing of TDS returns. The penalty amount can range from Rs. 200 per day to Rs. 1 lakh, depending on the duration of the delay and the amount of tax involved.
2. Interest on late payment:
If TDS is deducted but not deposited or deposited after the due date, the taxpayer may be liable to pay interest on the late payment at the rate of 1% per month or part of the month until the date of payment.
3. Prosecution:
In case of non-compliance with TDS regulations, the Income Tax Department may initiate prosecution proceedings against the defaulter, which can result in imprisonment and/or a fine.
4. Disallowance of expenditure:
If TDS is not deducted or deducted but not deposited or not filed, the Income Tax Department may disallow the expenditure claimed by the taxpayer in his or her tax return.
5. TDS credit mismatch:
Non-compliance with TDS regulations can result in a mismatch between the TDS credit claimed by the taxpayer in his or her tax return and the TDS credit available in the taxpayer’s Form 26AS. This can lead to an additional tax liability for the taxpayer.
6. Loss of reputation:
Non-compliance with TDS regulations can damage the reputation of the taxpayer and the business entity, leading to a loss of credibility in the market.
Therefore, it is essential for taxpayers to comply with TDS regulations and file TDS returns on time to avoid any penalties or legal consequences.
Conclusion
In conclusion, timely and accurate TDS return filing is crucial for both the taxpayers and the government. It helps to ensure that the taxes are paid on time and that the government receives the revenue required to run the country. Failure to comply with the TDS provisions can lead to severe consequences, such as penalties and legal action.
Some key points to keep in mind when filing TDS returns include understanding the eligibility criteria, knowing the due dates for different types of TDS returns, following the correct steps for filing the returns, and being aware of the consequences of non-compliance.
Therefore, it is essential to maintain accurate records and file TDS returns in a timely and correct manner to avoid any penalties or legal actions by the government. By doing so, taxpayers can ensure compliance with the tax laws and contribute to the overall development of the country.
