TDS (Tax Deducted at Source) is the amount withheld as tax from payments of various kinds such as salary, contract payment, commission etc. at the TDS rates prescribed by the government. The tax so deducted from the income of the recipient is deemed to be payment of income tax by the recipient at the time of his assessment and the credit of TDS can be taken at the time of return filing.
TDS return is required to be filed by the assessee who has deducted the TDS. These return are required to be filed quarterly indicating the TAN of the assessee and all the details regarding the TDS collected for the period. The details include amount of payment, amount of TDS, PAN of deductee, type of payment, etc.
TDS Return Forms
There are 4 types of TDS forms prescribed depending on the requirement.
| Form No. | Particulars |
|---|---|
| Form 24Q | Statement of Tax Deducted at Source from Salaries |
| Form 26Q | Statement of Tax Deducted at Source on all payments except Salaries |
| Form 27Q | Statement for Deduction of tax from interests, dividends or any other sum payable to non-residents |
| Form 27EQ | Statement of Collection of Tax at Source |
The TDS returns needs to be accompanied by verification Form 27A, which shows the ‘total amount paid’ and ‘TDS deducted’ which must match with the corresponding amounts on the TDS return.
TDS Return Due Date
The TDS returns are due each quarter. Due dates for all the TDS returns i.e Form 24Q, Form 26Q, Form 27Q and Form 27EQ are same and as follows:
| Quarter | Due Date |
|---|---|
| April to June | 15th July |
| July to September | 15th October |
| October to December | 15th January |
| January to March | 15th May |
Liability to file e-TDS Returns
Following Assessees are required to furnish TDS return in electronic form as per Section 206 of the Income Tax Act:
- All Government deductor/collector.
- All Corporate deductor/collector.
- All deductor/collector who are liable to get accounts audited under section 44AB in the immediately preceeding financial year.
- Where the the number of deductee records in a statement for any quarter of the financial year is equal to or more than twenty.
All other assessee except the above mentioned can file their return either in physical form or electronic form.
How to prepare e-TDS Return
e-TDS returns are prepared using any Return Preparation Utility (RPU). There are many 3rd party software and services available in the market that helps you prepare and file the e-TDS return. To facilitate preparation of e-TDS returns, government has also launched a TDS Return Preparation Utility, that can be downloaded from the NSDL website without any cost.
You can also file correction return using the TDS-RPU provided by NSDL.
Submission of TDS Returns
The TDS return prepared can be uploaded on NSDL website directly. In such case the assessee needs to digitally sign the form. In case of e-filing of TDS return a token number is generated instantly, that can be used as an acknowledgement receipt. In case there’s any discrepancy in the return a non-acceptance memo is issued stating reasons of rejection.
Assessee can also submit the return in a CD/Pen Drive accompanied by a signed verification in Form No. 27A at any TIN-FC (Facilitaion Centres) opened by NSDL at various cities. Following are the charges for furnishing e-TDS return:
| No. of deductee records in e-TDS/TCS return | Upload charges (exclusive of service tax) |
|---|---|
| Returns having up to 100 records | Rs. 31.15 |
| Returns having 101 to 1000 records | Rs. 178 |
| Returns having more than 1000 records | Rs. 578.50 |
Correction of TDS Returns
In case of any discrepancies in original TDS return, a correction return is filed that can be prepared using any RPU. Same fee is applicable for correction return also. An assessee can file a correction return any number of time. There is no due date or time limit for filing correction return.
Penalty provisions in case of Late Filing or Non-Filing of TDS Returns
In case of late filing of TDS return a penalty of Rs. 200 per day is applicable subject to maximum of total amount of tax deducted.
In case of non filing of TDS return within 1 year from the due date, the penalty applicable is minimum Rs. 10000 and maximum Rs. 100000 as decided by the AO.
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