Types of TDS Return
Tax Deducted at Source (TDS) returns are filed by entities who have deducted TDS on payments made by them. The type of TDS return to be filed depends on the nature of the deductor (the entity deducting TDS) and the nature of payments on which TDS has been deducted. Here are the common types of TDS returns in India:
- Form 24Q: This form is for TDS deducted on salaries. Employers deduct TDS on salaries paid to employees and file Form 24Q quarterly. It contains details of TDS deducted and deposited against each PAN.
- Form 26Q: This form is for TDS deducted on payments other than salaries to residents. It includes payments like rent, professional fees, contractor payments, interest other than interest on securities, etc. Form 26Q is also filed quarterly.
- Form 27Q: This form is for TDS deducted on payments made to non-residents. It includes payments like interest, dividends, royalties, fees for technical services, etc. Form 27Q is filed quarterly as well.
- Form 27EQ: This form is for TDS deducted on payments made under the provisions of Section 206C of the Income Tax Act, 1961. It includes TDS deducted on sale of goods, TDS on scrap, TDS on certain contracts, etc. Form 27EQ is typically filed quarterly.
- Form 24G: This is a statement cum challan for TDS and TCS (Tax Collected at Source) for Book Adjustment. It consolidates the TDS/TCS of all deductors/collectors.
These are the main types of TDS returns in India. Each form has its own due dates for filing and requirements regarding the details to be provided. It’s essential for deductors to comply with these requirements to avoid penalties and ensure smooth tax compliance.
Why should you timely file your TDS Returns?
Filing TDS (Tax Deducted at Source) returns in a timely manner is essential for several reasons:
- Compliance with Legal Requirements: Timely filing of TDS returns is mandatory under the Income Tax Act, 1961. Failure to file returns on time can attract penalties and interest under Section 234E, Section 271H, and other provisions of the Income Tax Act.
- Avoidance of Penalties: The Income Tax Department imposes penalties for late filing of TDS returns. The penalty for late filing of TDS returns is currently set at Rs. 200 per day of delay under Section 234E, subject to a maximum amount equal to the TDS amount.
- Avoidance of Interest: Apart from penalties, interest is also levied on delayed TDS payments. Late filing of TDS returns may attract interest under Section 201(1A) of the Income Tax Act at the rate of 1% per month or part thereof.
- Smooth Processing of Tax Refunds: Timely filing of TDS returns ensures that the deductee’s tax credit is reflected accurately in their Form 26AS. This helps in the smooth processing of income tax refunds, as any excess TDS deducted can be claimed as a refund by the deductee.
- Avoidance of Compliance Issues: Timely filing of TDS returns helps in avoiding compliance issues with the Income Tax Department. Non-compliance can lead to scrutiny, notices, and other legal consequences, causing inconvenience and unnecessary hassle.
- Enhanced Credibility: Timely compliance with tax regulations enhances the credibility of the deductor in the eyes of the tax authorities. It demonstrates a commitment to adhering to tax laws and fulfilling tax obligations promptly.
In summary, timely filing of TDS returns is crucial for avoiding penalties, interest, compliance issues, and ensuring smooth processing of tax refunds. It also helps in maintaining credibility with tax authorities and promoting good governance in tax matters.
Process of TDS return filling
The process of filing TDS (Tax Deducted at Source) returns involves several steps. Here’s a general outline of the process:
1. Preparation
Gather all the necessary information and documents related to TDS deductions made during the relevant period. This includes details of deductees (those from whose income TDS is deducted), TDS deductions made, and TDS payments.
3. Access the TRACES Portal
Log in to the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal using your login credentials. TRACES is the platform provided by the Income Tax Department for filing TDS returns and other related activities.
5. Validate the Data
Validate the data entered in the TDS return form to ensure accuracy and completeness. Check for any errors or discrepancies that need to be corrected before submission.
7. Submit the Return
Upload the generated TDS return file to the TRACES portal and submit it electronically. Verify the submission to ensure that the return has been successfully filed.
9. Receipt of Acknowledgment
After successful submission of the TDS return, download the acknowledgment receipt from the TRACES portal. This receipt serves as proof of filing the TDS return
11. Retention of Records
Retain all the records related to TDS deductions, filings, and payments for future reference and audit purposes as per the requirements of the Income Tax Act.
2. Select the Correct Form
Determine the appropriate form for filing TDS returns based on the nature of TDS deductions. Forms such as 24Q, 26Q, 27Q, or 27EQ are used depending on whether TDS is deducted on salaries, payments other than salaries to residents, payments to non-residents, or under Section 206C.
4. Fill in the Details
Enter the required details accurately in the selected TDS return form. This includes details of deductors, deductees, TDS deductions made, TDS payments, and other relevant information.
6. Generate the File
After validating the data, generate the TDS return file in the prescribed format specified by the Income Tax Department. Ensure that the file is generated correctly and includes all the required information.
8. Payment of TDS
If there is any TDS amount outstanding after deducting and depositing TDS, ensure that the payment is made before filing the return. Late payment may attract interest and penalties.
10. Reconciliation and Correction (if necessary)
Perform reconciliation of TDS data with deductees’ PAN details and rectify any discrepancies or errors identified through the online correction facility available on the TRACES portal.
12. Follow-Up and Compliance
Monitor the status of the filed TDS returns and follow up with the Income Tax Department for any further actions required. Ensure ongoing compliance with TDS provisions and fulfill any additional obligations as per the tax laws.
By following these steps diligently, you can ensure proper compliance with TDS provisions and timely filing of TDS returns.
Help you to Filing TDS return
1. Associate with us and upload the required details and documents for filing TDS return on our web porta
I can guide you through the process of gathering and organizing the necessary details and documents required for filing TDS returns. Additionally, I can provide advice on any queries you may have regarding the information to be provided.
3. On placing the order, your application will be assigned to one of our dedicated professionals
I can provide you with information about the workflow and the timeline for processing your TDS return filing request. Additionally, I can answer any questions you may have regarding the assignment process and the role of the dedicated professional assigned to your application.
5. Once approved, our professional will file TDS return online
I can provide information on the filing process and assist you in ensuring that the TDS return is filed accurately and on time. Additionally, I can guide you through any additional steps required for online filing, such as obtaining digital signatures if necessary.
2. Choose the appropriate Package and Pay online with various payments modes available
I can help you understand the different packages offered by your service and assist you in selecting the one that best suits your requirements. Moreover, I can provide information on the available payment modes and help you make the payment online securely.
4. Our professional team will prepare TDS return and provide you the statement for approval
I can offer guidance on the preparation of TDS returns and assist you in understanding the statements provided for approval. Furthermore, I can address any queries or concerns you may have during the preparation stage.
6. An Acknowledgement Receipt of TDS return shall be provided to you over the email
I can help you verify the acknowledgment receipt provided and address any questions or concerns you may have regarding the acknowledgment of TDS return filing.
Overall, I’m here to provide support and assistance at every step of the process to ensure a smooth and hassle-free experience with filing your TDS returns through your service. If you have any further questions or require clarification on any aspect of the process, please feel free to ask.
Packages
- Per TDS Return filing 26Q
- Per Quarter Up to 20 Venders
- If More 100 Per Vender
- Per TDS return filing
- Per Quarter Up to 20 Venders
- If More 100 Per Vender
- Generation of Form 16A
- Per TDS return filing
- Per Quarter Up to 20 Venders
- If More 100 Per Vender
- Generation of Form 16A
- For One Financial Year
Packages Salary Return
Per TDS Return filing 24Q
per quarter for first three quarter up to 10 employee and
For 4th querter due to TDS calculation and computation of salary for all employee additional fee Rs 200/ per employee
fee will increase 100/ per employee up to 50 employee and if increase more fee will separately discussed.
-
TDS Return filing with
Generation of Form 16 for first three quarter and employee up to 10, if increase fee will increase 100/ per employee up to 50 employee and above will discussAnd
*For 4th quarter due to TDS calculation and computation of salary for all employee additional fee will levied Rs 200/ per employee for Salary Packege not more than 10 lakh per employee.
If above fee will discussed separately.
-
TDS Return filing with
Generation of Form 16 for first three quarter and employee up to 10, if increase fee will increase 100/ per employee up to 50 employee and above will discussAnd
*For 4th quarter due to TDS calculation and computation of salary for all employee additional fee will levied Rs 200/ per employee for Salary Packege not more than 10 lakh per employee.
If above fee will discussed separately.
Documents Required for TDS Return filing
- PAN Card
- Aadhar No
- Income tax Password
- Email & Mobile no as per your Income tax Record
- Cancelled Cheque for account Information
- Bank Statement
- Form 16 and 16A
- Digital Signature Certificate
Frequently Asked Questions
Retention of Records
Retain all the records related to TDS deductions, filings, and payments for future reference and audit purposes as per the requirements of the Income Tax Act.
Retention of Records
Retain all the records related to TDS deductions, filings, and payments for future reference and audit purposes as per the requirements of the Income Tax Act.
Retention of Records
Retain all the records related to TDS deductions, filings, and payments for future reference and audit purposes as per the requirements of the Income Tax Act.
Retention of Records
Retain all the records related to TDS deductions, filings, and payments for future reference and audit purposes as per the requirements of the Income Tax Act.
Retention of Records
Retain all the records related to TDS deductions, filings, and payments for future reference and audit purposes as per the requirements of the Income Tax Act.
