Introduction to TDS:
Tax deducted at source, abbreviated as TDS, is a mode of income tax collection under the Income Tax Act, 1961. Any person/company is liable to deduct tax at source during payment if the amount is higher than the specified limits. All payments that come under the ambit of TDS must be paid after making the recommended deductions. The deduction has to be made at the rates prescribed by the government.
The person/company who pays the amount after deducting TDS is known as the Deductor and the person/company who receives the amount after deduction is known as the deductee. Since it is an advance tax, TDS is required to be deposited with the government on a periodic basis. The deductor is responsible for the remittance of the deducted tax in the government’s bank account. The deductee can claim the deducted TDS as tax refund after filing their Income Tax Returns (ITR).
TDS Return Form:
So as to file TDS, you have the option of going in for an e-TDS these days. Yes, the wave of digitalization has not spared the Income Tax Department, making it more convenient than ever for the filers to rush through the procedure. To file your e-TDS return, the first thing to do is prepare your data format which is validated by the e-filing manager. You can download this from any of their online portal.
The D-date to file your TDS return is impending. Since TDS return is needed to be provided online in certain cases, this can be arranged with the aid of return preparation utility. Thanks to the digitalization, this erstwhile hassling process is no more so. The government has initiated a TDS Return Preparation Utility (RPU) facility and can be directly downloaded from the website.
Brief about TDS Return Forms:
|TDS Return Form Number||Particulars|
|24-Q||Statement of TDS subtracted from monthly income.|
|26-Q||Statement of TDS subtracted from every disbursement other than remunerations.|
|27-Q||Statement of TDS reduced from Interest, bonus (any added income) or any other sum owed to any Non- Resident.|
|27-EQ||Report of TCS|
Persons/companies who are liable to deduct tax at source
Entities who are mandated to make tax deduction at source while making payment:
- Person or HUF, if covered under Tax Audit u\s 44AB during the 2009-2010 fiscal
- Limited companies
- Partnership enterprises
- Body of Individual
- Association of an individual
- Local authorities
Kinds of assessees who are liable to pay taxes to the government
Obligation of filing TDS return online is pertinent on class of assesses mentioned below:
- Every corporate assessee as well as collector
- Every government deductor along with collector
- Where collector and/ or deductor is expected to avail his/ her accounts assessed u/s 44AB of the Indian Income Tax Act (1961) in the directly preceding fiscal.
- Where the number of collector or deductor records per financial quarter report of the previous financial year is the same or more than 20.
- All other Assessees other than mentioned above can furnish their TDS return either in physical format or electronic format.
How to download TDS return form?
The basic requisite to file your TDS return is to download the TDS return forms. The process of downloading Tax Deduction Return forms is easy and just a matter of a few seconds. The forms can be downloaded either from the official website of the Income Tax Department or from the TIN NSDL website.
The TDS Return Forms has been sub-divided into four categories, namely, 24Q, 26Q, 27Q, and 27EQ, and all the forms are available on the mentioned website. Hence, before starting with the process, the taxpayer has to choose the exact form as per his/her job nature, income or profession. The assessee, at first, needs to select the category for which he/she has to file the TDS Returns. Once the assessee decides which form he/she needs to file the TDS, they need to download the required forms from the portal.
Download from the Income Tax Department Website
Here are the steps to download TDS forms from the website:
Step 1: Visit the official website of the Income Tax Department at https://contents.tdscpc.gov.in/
Step 2: Go to the ‘Quick Links’ section present on the left side of the main page
Step 3: Click open the ‘Forms’ tab from the given options
Step 4: As per your requirement choose the TDS Return Form from the list available and tap the icon given next to it
Step 5: Next, click on the ‘Download’ icon present on the top right side of the page to download the form on your computer.
Download from the TIN NSDL website
Follow the step-by-step process given below to download the TDS return forms from the portal:
Step 1: Log into the official website of NSDL at https://www.tin-nsdl.com
Step 2: Click on the ‘Downloads’ tab to get the drop-down list
Step 3: Next, select ‘E-TDS/E-TCS’ from the given menu
Step 4: In the next step, choose ‘Quarterly Returns’
Step 5: Then click on the ‘Regular’ tab and you will be redirected to a new page
Step 6: Based on your requirement, select the TDS Return Form given under the section labelled ‘Form’
Step 7: Click on the ‘Download’ icon present on the top right side of the page to download the form on your system.
Once the required forms are downloaded, the assessee needs to duly fill up the form with all the information and particulars as required. Then, the filled-up form has to be uploaded to the portal again to complete the TDS return filing process.
Note - The forms can also be downloaded from other reliable third-party websites which also allow e-filing of the TDS return.
Payment of TDS in verifying the bank while filling your e-TDS Return Form:
- Challan number 281 must be utilized for entering the values in the TDS.
- A precise 10-digit TAN (Tax-deduction Account Number) along with the name and contact details of the assessee or collector must be mentioned on each challan individually. TAN info shall be substantiated from Income Tax Department online portal.
- Different challan slips must be utilized to deposit TDS reduced under various sections. Apart from that the code for nature of disbursement must be cited in the concerned column in the challan. For instance, the 94-C for paying to servicers and sub-contractors, 94-J for procedural charges, royalty among others.
- Individual challans must be utilized to deposit TDS for various kinds of commercial as well as non-corporate assesses.
Facts to remember when you file your e-TDS Return:
- The statement issued per financial quarter must be submitted along with a hard copy of Form 27-A, duly filled and signed.
- Each and every return must be given in CD or Floppy Disc. It must be distributed over several floppies.
- Return must be compacted only by utilizing Ziptfast 3.0 or Winzip 8.1 compression value to make sure quick and hassle-free acceptance of file.
- Label signifying TAN, name and contact info of assesse and/ or collector, time period to which return relates together with the form number is copied on every CD for the purpose of easy documentation.
- There must not be any overwriting or smudges in the TDS Form 27-A. In case there is any instance of that, it must be corrected by any accredited signatory.
- Once the e-TDS return gets accepted, the virtual media will return to the deductor.
- If the TDS return form is filled as directed, TIN-FC will provide you a temporary receipt to you which will considered as the proof of e-return for the time being.
- If your return form is incomplete or has error of any kind, it will be denied and TIN-FC will give out a non-acceptance memorandum specifying the cause of default.
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