How to File TDS Return?  Decoding TDS Regulations

In this article, we’ll tell you How to File TDS Return. “TDS stands for ‘tax deducted at source.’ It is a system in India whereby taxes on specific payments such as salary, interest, and rent are collected by the government. TDS is deducted by the payer and remitted to the government on behalf of the payee. TDS (Tax Deducted at Source) return filing is a process in which a person or entity that deducts TDS is required to submit a statement detailing the TDS deducted and deposited during a specific period.

Forms required to file a TDS return

26The yearly report deducting taxes for all payments other than “salaries” under section 206 of the Income Tax Act of 1961
26QOther cases
27Quarterly statement of deduction of tax from interest, dividend, or any other sum payable to certain persons
27EThe annual return of a collection of tax under section 206C of the Income Tax Act, 1961
27QForeign companies, where the deductee is a non-resident
27EQTax Collected at Source

What are TDS returns?

The Income Tax Department of India developed and administers Tax Deducted at Source (TDS), an advanced tax withholding system. This system operates on the fundamental principle of deducting a specified percentage of tax directly from the source of payment.

Under the provisions of the Income Tax Act, any individual or registered entity making payments exceeding specified threshold limits must deduct a predetermined percentage of the amount as tax at the source. The deduction rates for TDS are determined and issued by the Income Tax Department. The party making the deduction after payment is referred to as the deductor, while the party receiving the net amount after deduction is known as the deductee. 

Eligibility Criteria for filing TDS?

  • The payment of compensation or wages.
  • Contribution to National Savings Plans and other comparable plans.
  • The insurance commission is paid.
  • revenue from the racing of horses.
  • money from puzzles, the lottery, and other sources.
  • revenue received through “Income on Securities”

Advantages of filing TDS returns

  • Decrease in tax burden: By distributing the amount over several months, filing TDS returns guarantees a decrease in the lump-sum tax payment at year’s end. As a result, the burden on taxpayers at year’s end will be lessened.
  • Reduction in tax evasion: The TDS amount that the deductor submits is collected by the Income Tax Department. A portion of the deductee’s tax at the time of submission is included in this amount. Thus, one can prevent tax evasion by submitting a TDS form.
  • Maintenance of income flow: TDS enables a steady stream of revenue for the government. To get the most out of the process and file a TDS return as quickly as possible, it is advised to learn how to do so.

Documents Required to Filing TDS Returns

  • PAN cards 
  • Details of TDS challan
  • Other paperwork, if needed

How to File TDS Return?

  • Navigate to the official e-filing portal.
  • Enter your login credentials and click Enter. (Please note, that your TAN serves as your user ID.)
  • After successfully logging in, select the Upload TDS tab located under the TDS section.
  • Upon selecting the TDS tab, a form will appear prompting you to input details such as TAN, FVU Version, Financial Year, Name of the Form, Particulars of the Quarter, and Upload Type. Once all fields are completed, click on validate.
  • You can validate the form using either a Digital Signature Certificate (DSC) or an Electronic Verification Code (EVC).
  • Upon successful validation of the form, proceed to submit it. If all information is entered accurately and the form is accepted, you will receive a provisional/acknowledgment token number. If the form is not accepted, you will receive a non-acceptance memo detailing the reasons for rejection.

FAQ of How to File TDS Return

Q1. What would happen if the return wasn’t submitted by the deadline?

A. According to Section 234E, the assessee will be penalized Rs. 200 per day until the TDS return is filed if they do not file it within the allotted time. Please be aware that the penalty’s total cannot exceed the TDS amount.

Q2. What happens if the TDS return is not submitted?

A. You will be subject to a penalty if you fail to file the TDS return within the allotted year. The range of penalties is from Rs. 10,000 to Rs. 1,00,000. It also applies to assesses who submitted false information in the course of filing.

Q3. How often is it possible to submit an updated TDS return?

A. If you need to make any revisions, you can file a revised return more than once.

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