TDS or Tax Deducted at Source is governed by the rules and regulations of the Income Tax Act, 1961 is a process where an employer deducts tax in advance before paying the salary to his employee or a payee deducts tax before making the actual payment to the receiver. The method of deducting tax is applied on incomes being earned on a regular basis as well as occasionally.
What is TDS Return?
TDS Return is a statement that summarizes the tax that has been deducted showing the details of the TDS entries deducted by the payee in lieu of TDS on a quarterly basis. This statement or the TDS Return is required to be filed with the IT Department every quarter.
How to File TDS Return?
The TDS returns can be filed by using different types of Return forms. They are:-
- Form 24Q is for filing of return when TDS is deducted from salaries of employee. Under Section 192 of the IT Act, 1961 the TDS Return is prepared. Under the same regulation, the online TDS Return or eTDS is also prepared. The Form 24Q consists of 2 Annexure – Annexure 1 is all about the employer and the employee; the Annexure 2 is the one that shows the salary details and tax computations
- Form 26Q is to be filed when TDS is deducted for any and all kinds of payments excluding salary payment. This statement is prepared as per Section 200 (3), 193 and 194 of the Income Tax Act 1961. This Form is applicable in case of tax deducted on fees paid to the directors, other professionals, interest on securities etc.
- Form 27Q is required to be filed on tax that has been deduced at source from incomes received from share dividends, bonus, interest or any other income of non resident Indians and foreigners other than their salary.
- Form 27EQ is meant for to depict the collection of tax at source following regulations of Section 206C of the IT Act, 1961.
What is the procedure of filing online TDS return?
For online TDS return filing, the following steps need to be followed:-
- The file format of the e-TDS and the e-TCS return is present at official website.
- The e-TDS or e-TCS return can be made using the Return Preparation Utility software of NSDL (National Securities Depository Limited) or even a software developed by a third party.
- The prepared statement needs to be verified using NSDL software called File Validation Utility. In case the software reports errors, the same need to be rectified and refiled for verification.
- The verified file can then be uploaded at official website. In order to upload the TDS or TCS return statements at the site above, the organisation has to be registered with the site.
What are the due dates of TDS Return Filing?
At the end of every quarter the TDS for the previous quarter has to be submitted to the Income Tax Department by the payee or the employer. The details have been shown below:-
- The TDS Return for the first quarter i.e. April – June the last date for TDS return filling is 31st July of the same financial year;
- TDS return for the second quarter (July – August) has to be filed by 31st October of the same financial year;
- For the third quarter (October – December), the last date for TDS return filling is 31st January of the same financial year; and
- The fourth quarter (January – March) returns need to be submitted by 31st May of the next financial year.
Late filing of TDS Return
As per a new ruling that has come into force from 1st April 2017, the maximum penalty for late filing of the return is Rs. 10000.
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