TDS stands for Tax Deducted at Source and it is basically something that an employer deducts from his/her employees’ salaries. There are certain forms that one needs to fill up in order to keep their income tax payment and deduction in place.
Filing TDS returns is mandatory as per the prevailing provisions of the Income Tax Act in India. For tax deducted at the source on certain types of payments, the assessee who has deducted the taxes at source should file the returns quarterly by producing TDS/TCS statements along with details such as TAN, PAN, deduction amount, payment type etc. The section below provides details of the various forms involved in the filing process.
- Form 24Q: TDS statement for salaries
- Form 26Q: TDS on all payments except salaries
- Form 27Q: Tax collected from dividend/interest paid to non-resident Indians (NRIs)
- Form 27EQ: Collection of taxes at source
In addition to filing quarterly return statements, the assessee should also provide Form 27A. This form deals with summary of the returns filed which contains tabulations for the amount paid during various transactions and breakup of the IT deducted. The calculations provided in Form 27A should tally with the TDS/TCS statement.
Online filing of quarterly results is a must under the following circumstances. This is mandatory as per section 206 of the Income Tax act.
- Deductors/Collectors from government offices
- Deductors/Collectors from private companies or corporates
- If the Deductor/Collector is a person, whose accounts should be audited u/s 44AB in the last financial year.
- If the number of deductees recorded in the statement during a specific quarter are 20 or more.
All other types of assesses can either choose to file online or over the counter, at the designated offices and centers.
How to File TDS Returns Quarterly?
TDS returns can be easily filed online, on tin-nsdl.com. The returns can be filed with RPU (Return Preparation Utility), available on the same web portal. It is a free-to-use resource, that can be downloaded from the site. Follow the instructions provided on the relevant link to provide the required information on the available form as per the TDS type. As a deductor/collector, you’re required to verify the information by providing digital signature.
Make sure to know the due dates and file accordingly to avoid penalty.
One can also submit the TDS statements and related paperwork at any of the designated TIN-Facilitation Centers managed by NSDL, details of which are available on the website.
These FCs are available at prominent cities and towns at various states in the country. Upon submission of the forms, the representative will issue a provisional receipt as an acknowledgement for the TDS/TCS returns filed. In case of rejection due to some reason, a memo would be provided with the reason for non-acceptance.
Due Dates for Filing TDS Returns:
|April to June (Q1)||July 15|
|July to September (Q2)||October 15|
|October to December (Q3)||January 15|
|January to March (Q4)||May 15|
Charges for Filing TDS/TCS:
|No. of deductees recorded in the TDS/TCS return||Upload Charges (Inclusive of service tax)|
|Up to 100 records||43.50|
|From 101 to 1000 records||204.00|
|More than 1000 records||662.50|
The charges are subject to change without prior notice. Please refer to the TIN-NSDL website for up to date details of applicable charges.
Penalty for Non-filing/Delay in filing TDS Return:
There are monetary penalties if the deductor/collector does not file the return as per the due dates each quarter.
- If the deductor fails to file the TDS/TCS return within an year from the time it falls due or provides incorrect information due to which it gets rejected, the penalty imposed can range between ?10,000 to ?1,00,000 on case to case basis.
- If the return is not filed as per the due date, a penalty at a daily rate of ?200 is payable, until the time valid returns are received by the department. The total penalty however, shall not exceed the tax amount deducted.
Frequently Asked Questions:
Is there a limit on the previous financial years I can file TDS/TCS returns for?
Only statements pertaining to financial years from 2007-08 are accepted. The Income Tax department has discontinued TDS/TCS filing for years prior to FY 2007-08.
What information do I provide in case of unavailability of PAN of the deductees at the time of filing?
If you do not have the PAN of the deductees to show in the statement, tax deduction should be done at higher rate as per Income Tax Department slabs and mark such deductees as “C” in the statement. This process holds good for TDS returns filed.
For TCS deductions, the validation process of quoting the PAN for 85% of the deductees is mandatory. If this condition is not fulfilled, the file will not go through the file validation utility service. In such situations, deductees with valid PAN should be reported first and the ones without PAN be reported once the details are available.
Can you please throw light on the computer media usage procedure at the time of filing for TDS/TCS returns?
You can furnish one or more e-TDS/TCS statements in the same media such as CD or Pen Drive. However, a single return cannot be provided in two or more computer media. You just have to submit the media without any labelling.
Who do I contact in case if I am having issues/difficulties in filing e-TDS/TCS?
All information pertaining to e-filing has been made available on the TIN-NSDL website. In case of any issues, you can visit the nearest facilitation centre for further assistance. Details of FCs are available on the website.
Please list the different types of corrections I can make to the TDS/TCS statement after filing.
Once accepted, the following category of corrections can be be made.
Category of correction Description C1 Deductor’s personal details such as name and address can be updated under this category C2 Relates to changes made to the challan. Details such as serial no.,amount, tender date and BSR code C3 Deductee details can be added/deleted or updated C4 Salary detail records can be added/deleted C5 Update the PAN of the deductee/employee C9 Adding new challan