FILE TDS RETURNS

TDS return is a statement given to the Income Tax department quarterly. It is mandatory for every citizen to deposit income tax and file for TDS return on time.

A company or an employer who has a valid TAN (Tax Collection and Deduction Account Number) can file for an online TDS return. Any individual or business who makes a particular payment which is stated under the IT Act needs to deduct tax at source. The deposit for the same has to be made within the specified time. The payment categories include:

• Salary
• Insurance commission
• Income from winning horse races
• Income by way of “Income on Securities”
• Income by way of winning the lottery, puzzles, and others
• Payment in respect of National Saving Scheme and many others

An individual can submit an e-TDS return if the same was deducted from their income. As mentioned earlier, it is the obligation of the individual to file within the due date or be liable to pay a penalty for delay. The categories of individual eligible to electronically file TDS return every quarter are:

• Company
• Persons whose accounts are audited u/s44AB
• Persons holding an office under the Government

Benefits of TDS Return Filing:

As per the IT Act of 1961 filing, a TDS return is mandatory as well as fetches some benefits to a person or company.

• A steady inflow of income to the government.
• Facilitates a smooth collection of taxes used for welfare.
• No burden of paying tax lump sum as the payment is done every three months for the whole year

Files your TDS Returns timely:

To avoid the penalty: No doubt, late filing of the TDS/TCS return would attract a heavy penalty of INR 200 per day till default continues.

To prevent additional penalty: Besides the minimum penalty of INR 200, the tax deductor would also be liable for the additional penalty for failure to file TDS return within one year from the particular date. This ranges from INR 10,000 to INR 1 lakh.

To facilitate the reconciliation of the ITR: The main purpose of the filing of TDS return is reconciling the income actually earned with income declared in the income tax return.

To avoid cancellation of the expenditure: If the person supposed to file the TDS return fails to do so on time, then the assessing officer may opt for nullifying the impact of expenditure on which the TDS was required to be deducted but not deducted. Hence liable for incremental tax incidence.

Facilitating filling of Form 26AS: Form 26AS is an annual consolidated tax statement that specifies the details of the taxes deducted during the year. Anyone can claim TDS credit only if entries are visible in form 26AS. If you deduct the TDS of a person and not file a TDS return, such a person may rush to you for the same at the last moment.

Types TDS return forms:

TDS return Form 24Q: Statement for tax deducted at source from salaries
TDS return Form 26Q: Statement for tax deducted at source on all payments other than salaries
TDS return Form 27Q: Statement for a tax deduction on income received from interest, dividends, or any other sum payable to non-residents.
TDS return Form 27EQ: Statement of collection of tax at source.

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