What is the process for TDS Return Filing in India?
TDS is
the short form for Tax Deducted at Source. Any Company or any person making the payment is required to deduct tax at source if the amount surpasses the
prescribed threshold limit. The Income-tax Department of India decides the rate
at which the TDS will be deducted. The entity or individual who deducts the supposed
amount is known as a deductor, and the person whose tax is deducted is known as
Deductee. It is the responsibility of the deductor to deduct the TDS before
making any payment and deposit it to the government. The procedure of filing
the returns of the Tax Deducted at Source or TDS Return is known as TDS Return filing in India.
What is Tax Deducted at Source?
TDS is
the acronym for Tax Deducted at Source, which means of a collection of Income Tax
in India. Tax Deducted at Source is done under the Income Tax Act, 1961. Under the provision of TDS, any payment enclosed
is paid after withholding the amount as per the set percentage. It is managed by
the Department of Revenue organized by the Indian Revenue Service, which is the
part of the Central Board of Direct Taxes or CBDT. TDS is significant while
conducting audits.
What are the groups under which the TDS return is filed?
The
categories under which TDS Return is lodged are as follows: -
·
Salary of any individual;
·
Insurance Commission;
·
Income from any other sources such as lottery
puzzles;
·
Payment from the National saving Scheme by the
government;
·
The assessee needs to file the penalty for delay
within the due date.
What are the benefits of the TDS Return filing?
According
to the Income Tax Act 1961, filing TDS Return is mandatory for an individual or
any business entity.
- TDS Return filing on time helps the government
in tracking the records of the inflow of Income.
- The Return from the TDS Return filing is used
for the welfare of the Nation.
- Since the Tax is paid every quarter, so there is
no load of paying the lump-sum tax.
What are the documents compulsory for TDS Return filing?
Following
are the necessary documents to be submitted while filing the TDS return online:
What are the various categories of TDS Return Filing Forms?
The
various categories of TDS return filing forms prescribed under TDS are as
follows-
ApprovedForm
|
TDS Purpose
|
FORM-24Q
|
TDS from Salary
|
FORM-26Q
|
TDS from all payments except the salary
|
FORM-26QC
|
TDS for the rent payment above INR 50,000.
|
FORM-27Q
|
TDS from other sources of earning like Dividend funds, interest from
savings, or fixed deposits.
|
FORM-27EQ
|
Tax collection at basis
|
A contracted
Form-27A should be attached with the return statement for the quarterly TDS.
What is the process for TDS Return filing?
The TDS
Return filing comprises the details of total TDS deducted and the amount collected
by Deductor, TAN/PAN of the Deductor and Deductee, challan information etc.
The
process involved is as follows-
· You are required to fill all columns of For-27A,
that contains a control plan. Then the form is verified in hard copy with the
TDS return filed electronically.
· Also, you need to fill in the details of the
total amount paid cautiously and the Tax deducted at source in all the forms, with
Form No-24, Form No-26, Form No-27, and Form No-27A.
· The assesseeis required to mention the Tax
Deduction Account Number (TAN) in Form No-27A. Likewise, this is similar to
what is done in the case of e-TDS Return filing. It is dictated under section
203A(2) of the Income Tax Act in India.
· Similarly, at the time of filing the TDS return,
make sure that the details relating to the depositing of Tax deducted at source
(TDS) have been mentioned precisely.
· Besides, the basic form that has been used for
e-TDS Return recommended by the department is obligatory to track. This is
because it brings reliability and a better understanding of filling of the forms.
Moreover, it is compulsory to mention the Bank Branch Code, which is a 7-digit
code given to banks by the Reserve Bank of India (RBI).
· Additionally, E-TDS return has to be filed in
the ASCII clean text format. To avail of this format, you can use the software
of your choices such as MS Excel, Computer, or Tally. Additionally, you have
the option of using the software available at the NSDL website identified as
(e-TDS RPU Light) Return Prepare Utility for filing the online Return. Moreover,
it is obligatory to make sure that the online TDS file formats come with ‘txt’
as the filename extension lead.
· Similarly, the physical returns are surrendered
at any TIN-FC’s managed by NSDL. Furthermore, TIN-FC’s are found in particular
areas across the country.
· If online returns are filed, then they can be surrendered
directly at the NSDL TIN website. In such cases, the deductor is required to
sign the Return through digital signature.
· Lastly, while sending the Return, if all the
details mentioned are accurate, then a provisional receipt or token number will
be issued. This temporary receipt or token number is considered as an
acknowledgment, maintaining the fact that the Return has been marched. Though,
in case the Return is not acknowledged, then a non-acceptance memo will be
issued along with the reasons for refusals.
What is the penalty in the late filing of TDS Return?
Any
individual or any entity who fails to file the TDS Return within the due dates
as agreed will have to pay the late filing fee. The penalty fee will be as
follows-
·
As Per
Section 234E
A sum
of INR 200 for every day for which such TDS return filing failure continues.
The late fees should not be more than the sum of the TDS Return filing. The
late TDS return filing fine is required to be submitted before TDS Return
filing.
·
As Per Section
271H
The
assessing officer has the control to direct the nonpayer to pay the price,
which can be a minimum of INR 10,000 up to the maximum of INR 1 lakh. The
penalty is in addition to late TDS return filing fees.
Apart
from the delay in TDS return filing, a penalty is also involved in the event of
the incorrect filing of the TDS Return.
What is the Due Date for Filing the TDS Return?
Though
the TDS Return can be filed online, there is a due date for each quarterly
submission. For the fiscal year 2019-20,
Quarter
|
Quarter
Period
|
Last
date of filing
|
First Quarter
|
1st April to 30th June
|
31st July 2019
|
Second Quarter
|
1st July
to 30th September
|
31st July
2019
|
Second Quarter
|
1st October to 31st December
|
31st January 2020
|
Second Quarter
|
1st January
to 31st March
|
31st May
2019
|
Conclusion
Any Company or any person
making payment is required to deduct tax at source if the amount surpasses the
prescribed threshold limit. The Income-tax Department of India decides the rate
at which the TDS will be deducted. The entity or individual who deducts the
supposed amount is known as deductor, and the person whose tax is deducted is
known as Deductee. The deductor should deduct the TDS before making any payment
and deposit to the government. If you want to know more about TDS Return
Filing, contact Corpbiz.
Excellent Informative Article about TDS Return Filing
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