Don't stress or worry about last-minute ITR filing. Trust our expert — File now!
TDS Return
A TDS (Tax Deducted at Source) Return is a mandatory document filed by entities that deduct tax at source. The return details the amount of TDS deducted, deposited with the government, and other related information for a specific period, usually a quarter.
At Accountants Factory LLP, we provide expert assistance in filing TDS returns accurately and on time. Our team ensures compliance with the latest tax regulations, helping businesses and individuals avoid penalties and streamline their tax processes. With our professional support, you can manage your TDS obligations effortlessly and focus on growing your business with confidence.
Very useful to get accounting work done. Startup services like company registration, LLP creation etc are well handled by the team, also they handled income tax returns and guided us with an appropriate investment strategy. They were available all the time for our queries and guided us.
Roshan Chittoor
500+
Happy Clients
10+
CFOs
2+
Offices
What is TDS Return?
A TDS (Tax Deducted at Source) Return is a statement filed by taxpayers (the deductor) to the Income Tax Department reporting the tax they have deducted from payments made to various parties (the deductees). The return contains details about the tax deducted, the parties involved, and the tax paid to the government during a specific period, typically on a quarterly basis.
The purpose of filing a TDS return is to report tax deductions made at the time of various financial transactions like payments of salaries, interest, rent, and more, in compliance with Section 192 to 195 of the Income Tax Act, 1961. This helps ensure that tax is collected at the point of income generation and is deposited with the government.
Who Needs to File a TDS Return?
Individuals or entities who deduct TDS are responsible for filing TDS returns. The following are required to file TDS returns:
• Employers who deduct TDS on salaries.
• Businesses and organizations that deduct TDS on professional fees, interest, rent, commissions, etc.
• Government bodies that deduct TDS while making payments to contractors, professionals, or service providers.
• Any individual, group, or entity who deducts TDS under applicable sections of the Income Tax Act, 1961, including payments made to non-residents.
• Companies required to deduct TDS on payments made to vendors, contractors, or consultants.
Types of TDS Return Forms:
S.No.
Type of Form
Purpose
1
Form 24Q
For TDS on salaries. Employers must use this form to report TDS deducted on employees’ salaries.
2
Form 26Q
For TDS on non-salary payments, including interest, commission, rent, and professional fees.
3
Form 26QB
For TDS on the sale of immovable property, such as land or buildings.
4
Form 27Q
For TDS on payments made to non-residents such as income from interest, dividends, or royalty.
5
Form 27EQ
This form is used for reporting Tax Collected at Source (TCS), applicable to transactions like the sale of goods and services.
When to File TDS Returns?
Quarter 1 (April to June): By 31st July.
Quarter 2 (July to September): By 31st October.
Quarter 3 (October to December): By 31st January.
Quarter 4 (January to March): By 31st May.
Late submission of TDS returns can result in penalties, which will be discussed further below.
File your TDS returns on time to avoid penalties and ensure compliance with tax regulations
What Information is Included in a TDS Return?
A TDS return typically includes the following information: Details of the Deductor: This includes the TAN (Tax Deduction Account Number), name, address, and contact details of the entity that is deducting the tax. Details of the Deductee: The PAN (Permanent Account Number) of the individual or entity from whom the tax has been deducted. Amount of Tax Deducted: Total TDS deducted from each deductee during the quarter. Challan Details: Information regarding the challan used to deposit the deducted TDS with the government. Nature of Payment: The type of income on which TDS was deducted (e.g., salary, interest, commission, rent). TDS Deposit Details: The amount of TDS deposited with the government by the deductor. Other Information: Details of corrections or amendments (if any), financial year, assessment year, and other relevant specifics.
Penalties for Late Filing of TDS Returns:
There are several penalties associated with failing to file TDS returns on time: Late Filing Fee: Under Section 234E of the Income Tax Act, if a TDS return is filed after the due date, the deductor has to pay a penalty of Rs. 200 per day for every day of delay until the return is filed. However, the total penalty will not exceed the amount of TDS payable. Non-Filing of TDS Return: If the TDS return is not filed within one year from the due date, the deductor may be liable to pay a penalty ranging from Rs. 10,000 to Rs. 1,00,000. Failure to Deposit TDS: If the deducted TDS is not deposited with the government within the due date, the deductor may face additional penalties and interest, as per Section 201 of the Income Tax Act.
TDS Payment and Challan Details:
After TDS is deducted, the tax must be deposited with the government using a TDS challan. The following challans are used for TDS payment: Challan 281: This is used for the payment of TDS. Challan 282: Used for the payment of TCS.
The challan must be filled with details such as: TAN of the deductor. Amount of TDS deducted and deposited. Nature of Payment: Which section it pertains to. Assessment Year and Financial Year.
How to File TDS Returns Online?
STEP-BY-STEP GUIDE
To file TDS returns online, follow the steps below:
Visit the official e-filing portal of the Income Tax Department or the TRACES website.
Log in using your TAN (Tax Deduction Account Number).
Download the appropriate TDS return form (24Q, 26Q, etc.).
Fill in the details like TDS deducted, PAN of deductees, challan details, and other relevant information.
Validate the return using the FVU (File Validation Utility), available on the NSDL website.
Submit the return and upload the form on the portal.
After successful submission, the system will generate an acknowledgment containing a provisional receipt number (PRN).
Check the status of the return periodically through the portal.
Revised TDS Return:
If errors are identified in the filed TDS return (e.g., incorrect PAN, incorrect challan details, or wrong tax deducted), a revised return must be filed to correct the mistakes.
• A revised return can only be filed if the original return has been successfully processed by the system.
• Key Steps for Filing a Revised TDS Return:
o Identify Errors: Common errors include wrong PAN numbers or challan mismatch.
o Correct Errors: Correct the mistakes in the return and use the same form as the original filing.
o Upload Revised Return: Submit the corrected return following the same procedure as the original return.
TDS Return Verification:
Once the return is filed, you need to verify it to ensure there are no discrepancies. This can be done using the TDS Return Validation Utility (FVU), which checks for errors like:
• Incorrect details in the form.
• Invalid PAN numbers.
• Mismatched challan or amount details.
If errors are found, the FVU tool will provide a report, and the corrections need to be made before submitting again.
TDS and Form 26AS:
Form 26AS is a comprehensive statement that displays the tax credit (TDS, TCS, advance tax) related to a taxpayer. The form is accessible by both the deductee and the deductor. The TDS deducted by the deductor will appear in Form 26AS under the respective sections. This allows taxpayers to cross-check whether the tax deducted is correctly reported.
Common Mistakes in TDS Filing:
Here are some common mistakes made during TDS return filing:
• Incorrect PAN numbers of the deductor or deductee.
• Wrong challan details or mismatch with the actual payment.
• Late filing or filing after the due date, leading to penalties.
• Missing signatures or incorrect data validation.
TDS Return Acknowledgment:
After filing the TDS return, the Provisional Receipt Number (PRN) is issued, which can be used to track the return status and for further reference. The acknowledgment serves as proof of successful filing.
Conclusion:
Timely and accurate filing of TDS returns is crucial for maintaining compliance with tax laws and avoiding penalties. The TDS system ensures tax collection at the source of income generation and helps prevent tax evasion. Proper adherence to filing deadlines and validation processes will contribute to smooth business operations and help avoid legal complications.
Why to Choose Accountants Factory LLP
At Accountants Factory LLP, we specialize in providing expert assistance for TDS (Tax Deducted at Source) return filing. Our team of professionals ensures that your TDS returns are filed accurately and on time, helping you stay compliant with the latest tax regulations. Whether you are an individual, business, or organization, we understand the intricacies of TDS requirements and offer personalized support to simplify the filing process. With our expert guidance, you can avoid penalties, optimize your tax management, and focus on growing your business with confidence. Let Accountants Factory LLP be your trusted partner in managing all your TDS-related obligations.
