TDS Return Form

Introduction to TDS:

In simple terms, TDS is tax deducted from your earnings before it is credited to your account. Tax Deducted at Source (TDS) is a way to amass income tax in our country of collecting income tax in India, under the Indian Income Tax Act of 1961.

All the payments covered under the TDS provisions shall be paid once the prescribed percentage is subtracted. It is regulated and monitored directly by the Central Board for Direct Taxes (CBDT). As an inherent part of the Department of Revenue handled by the Indian Revenue Service (IRS), it commands that significance when tax audits are conducted. Assessee is also expected to submit his/ her return to CBDT every three months. In the Returns, the TDS deduction and other payments will be recorded chronologically.

Whether you agree or not, our government loves TDS. Every time, tax gets cut at source, it aids them in broadening their tax-network. With more people registered and recorded, the Indian Income Tax Department takes TDS deduction and tax evasions quite gravely, making TDS as something every tax paying individual should know of. Tax Deducted at Source (TDS) system was initiated to enable the payment of Tax as you get your regular income, following the notion of ‘Pay as you Make’.

The obligation to pay tax on your monthly salary income owed to the employee is also to individual pan card holder and HUF. Currently, rate of deduction is on the basis of the status of recipient rather than the payment mode.

People accountable to deduct TDS:

  1. Person or HUF, if covered under Tax Audit u\s 44AB during the 2009-2010 fiscal
  2. Limited companies
  3. Partnership enterprises
  4. Body of Individual
  5. Association of an individual
  6. Local authorities

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:

SL No. TDS Return Form Number Particulars
1 24-Q Statement of TDS subtracted from monthly income.
2 26-Q Statement of TDS subtracted from every disbursement other than remunerations.
3 27-Q Statement of TDS reduced from Interest, bonus (any added income) or any other sum owed to any Non- Resident.
4 27-EQ Report of TCS

Kinds of Assesses:

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.

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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