TDS Return Filing – Ensure Accurate and Timely Compliance
Tax Deduction at Source (TDS) refers to the deduction of tax from income at the point of payment. Entities and individuals responsible for deducting tax at source are legally required to file TDS returns quarterly, providing detailed records of these deductions. At Taxation Point India, we guide you through the TDS filing process, ensuring your returns are accurate, TDS is paid online, and all compliance requirements are met timely.
Understanding TDS (Tax Deducted at Source)
TDS is a mechanism where tax is deducted by the payer (deductor) on specified payments to the payee. This includes salary, rent, interest, professional fees, and commissions. The recipient reports gross income (before TDS) in their income tax return, while the deductor deposits the TDS online and files the quarterly return to ensure compliance.
Who Should Deduct TDS?
- Individuals, Hindu Undivided Families (HUFs), firms, companies, and other entities required to deduct TDS under the Income Tax Act, 1961.
- Entities must register as a TDS deductor and complete the TDS filing process on time.
Deposit of TDS
Deducted TDS must be deposited with the government by the prescribed TDS due date, usually by the 7th of the subsequent month. Timely deposits ensure compliance and avoid penalties.
Common Payments Attracting TDS & Thresholds
- Rent (Sec 194I): Annual rent exceeding Rs. 2,40,000
- Contractor/Sub-Contractor (Sec 194C): Single payment > Rs. 30,000 or annual aggregate > Rs. 1,00,000
- Professional Fees (Sec 194J): Annual payment exceeding Rs. 30,000
- Interest (Sec 194A): Annual interest exceeding Rs. 40,000 (Rs. 50,000 for senior citizens)
- Salary (Sec 192): Total taxable salary exceeding the basic exemption limit
TDS Rates by Key Sections
| Section | Nature of Payment | Basic Rate* |
|---|---|---|
| 192 | Salary | As per Slab |
| 194A | Interest (other than securities) | 10% |
| 194C | Payment to contractors/sub-contractors | 1% (Individual/HUF), 2% (Others) |
| 194I | Rent (Land/Building/Machinery) | 2% / 10% |
| 194J | Professional/Technical Services | 10% |
Who is Required to File TDS Returns?
TDS returns must be filed by employers, organizations, and other deductors with a valid TAN (Tax Deduction and Collection Account Number). This includes entities under audit (Section 44AB) and government or corporate deductors. Returns must be filed quarterly to avoid penalties.
TDS Return Filing Due Dates (Quarterly)
| Quarter | Period | TDS Return Due Date |
|---|---|---|
| Q1 | April – June | 31st July |
| Q2 | July – September | 31st October |
| Q3 | October – December | 31st January |
| Q4 | January – March | 31st May |
Penalties for Non-Compliance
- Late Deduction/Payment: Interest @ 1% per month for late deduction; 1.5% per month for late remittance.
- Late Filing of TDS Return: Fee @ Rs. 200 per day up to the amount of TDS.
- Penalty: Assessing Officer may impose a penalty up to the TDS amount, along with interest and fees.
TDS Return Forms
- Form 24Q: Quarterly statement for TDS on salaries
- Form 26Q: Quarterly statement for TDS on non-salary payments
- Form 27Q: Quarterly TDS statement on payments to non-resident Indians/foreigners
- Form 27EQ: Quarterly statement for Tax Collected at Source (TCS)
Procedure for TDS Return Filing Online
- Gather all required documents including TAN, PAN, TDS challans, and previous TDS records.
- Select the correct TDS return form based on payment type (Form 24Q, 26Q, 27Q, or 27EQ).
- Download the Return Preparation Utility (RPU) from the TRACES portal and input all deductor and deductee details.
- Validate the return using the File Validation Utility (FVU).
- Generate the .fvu file and submit via the Income Tax Department e-filing portal. Attach DSC if applicable.
- Receive the acknowledgement for your records.
Revised TDS Returns
Errors in submitted returns, such as incorrect PAN or challan details, require filing revised TDS returns. Revised returns ensure the correct TDS credit is reflected in Form 16, 16A, and 26AS.
Claiming TDS Credit
Deductees must report TDS details in their income tax return to claim credit. Correct TDS certificate numbers and details must be quoted to avoid discrepancies in tax credit.
Why Choose Taxation Point India for TDS Return Filing?
At Taxation Point India, we provide expert guidance throughout the TDS return filing process. Our team ensures compliance with the latest regulations, accurate calculations, and timely filing. With our support, businesses and individuals can avoid penalties, streamline TDS operations, and maintain accurate tax records efficiently.
Simplify your TDS return filing with Taxation Point India and ensure timely, accurate, and compliant tax submissions.
Contact us today for expert assistance.