TDS Returns

TDS (Tax Deduction at Service).

Description: TDS is the tax that is collected by the Government of India at the time when a transaction takes place. Here, in this case, the tax is to be deducted at the time the money is credited to the payee’s account or at the time of payment whichever happens earlier.

TDS return Filing: Apart from depositing the tax the deductor also has to do TDS return filing. TDS return filing is a quarterly statement that is to be given to the Income Tax department. Once the TDS returns are submitted the details will come up on Form 26 AS. While filing the TDS returns the various details to be mentioned are:

• PAN of the deductor and the deductee.
• Amount of tax that is paid to the government
• TDS challan information
• Others, if any.

Eligibility Criteria: TDS return filing is done by organizations or employers who have availed a valid tax collection and deduction number (TAN).

• Salary Payment
• Income on securities
• Income by winning the lotteries, puzzles, and others.
• Income from winning horseraces
• Insurance commissions.
• Payment concerning the National saving scheme and many others.

Due Date for TDS Return filing

Quarter                        Period                                    Last Date of Filing

1st Quarter          1st April to 30th June                                   31st July 2021

2nd Quarter         1st July to 30th September                        31st October 2021

3rd Quarter          1st October to 31st December                      31st Jan 2022

4th Quarter          1st January to 31st March                            31st May 2022

Procedure:

Step 1: Firstly, Form 27 A containing multiple columns has to be filled and in case of the hard copy of the Form, it has to be verified along with the E-TDS return that has been filed electronically.

Step 2: In the next step, the tax that is deducted at the source and the total amount that has been paid needs to be correctly filled as well as tallied.

Step 3: The TAN of the organizations is to be mentioned on Form 27 A. There will be difficulties in the process of verification if the mentioned TAN is incorrect.

Step 4: While filing the TDS returns the appropriate challan number, the mode of the payment, and the tax details have to be mentioned. In case of the incorrect challan number or the incorrect date of the payment, there will be a mismatch and the TDS returns also need to be filed again.

Step 5: To bring consistency the basic Form used for Filing the e-TDS must be used. The 7 Digit BSR has to be entered for easing the tallying process.

Step 6: Physical TDS returns are to be submitted at the TIN FC, which is managed by NSDL. In case of the online filing, they can be submitted on the official website of the NSDL TIN.

Step 7: If the provided information is correct then a token number or a provisional receipt is received. This is a proof that TDS return has been filed.

Step 8: In case of rejection, a non-acceptance memo along with the reason for the rejection is issued and the returns have to be filed again.

Types of TDS Return Forms

Form	Periodicity	Particulars
Form 24Q	Quarterly	The quarterly statement for TDS from “Salaries”
Form 26Q	Quarterly	Quarterly statement of TDS in respect of all payments other than “Salaries”
Form 27Q	Quarterly	Quarterly statement TDS interest or any other sum payments to non-residents
Form 27EQ	Quarterly	Quarterly statement of collection of tax at source

 

Penalty for failure in filing the TDS returns: In case a person fails to file the statement of TDS within the due date there is a minimum penalty of Rs. 10,000 which can be extended to Rs.1,00,000.

Duration required for TDS refund: It takes 30-45 days from the date of the E-verification of the income tax return to get the refund credited.