TDS return filing

TDS Return / statement is a summary of all the transactions that relate to TDS payments made during a Quarter. It is a statement which the deductor requires to submit to the income tax department.

Submitting TDS Return is compulsory for a deductor. It has the details of TDS deducted and deposited by the deductor. TDS Returns include details such as PAN of the deductor and deductees, particulars of tax paid to the government, TDS challan information and other details as required in the forms.

What is TDS return filing?

As per the Income Tax Act, all deductions made by the deductor on various payments have to be periodically updated to ITD via a pre-defined process. This process is known as TDS Return Filing.

With effect from FY 2005-06, the electronic form of TDS/TCS return filing was introduced. The return filing needs to be furnished on a quarterly basis in the department prescribed format.

The forms used for submitting these quarterly TDS statements are:

  • Salaries Details – Form 24Q
  • Other than Salaries Details – Form 26Q
  • Details of NRI Payment – Form 27Q

Similarly, the form used for submitting quarterly TCS statement is:

  • Form 27EQ for details of Tax collected at source

Who is required to file TDS returns?

The person who deducts TDS is responsible to furnish TDS Return. It is mandatory to file TDS Return within time; otherwise, they are liable to pay penalty for non-submitting of e-TDS Return.

The following assesses have to file TDS return quarterly if they are;

  • One whose accounts are Audited
  • A person holding an office under the Government.
  • A Company

Pre-requisites for TDS return filing

A deductor should have the details prior to TDS Return filing:

  • TAN (Tax Deduction Account Number)
  • PAN (Permanent Account Number)
  • Transaction details (Party Name, Party PAN, Date of Payment, Section of Payment, Rate of Tax Deduction, Certificates (if any)
  • Payment Details (Challan Number, Challan Date, Challan BSR Code, Challan Amount)

Details to be verified before TDS return filing

The below details have to be verified for its accuracy before TDS return filing. Also, if the details are not verified, it may lead to the default notice.

  • PAN of the deductees
  • Challan Details (After 3-5 working days of payment)
  • Certificate details – Lower / No Deduction (If any)

What are the details submitted in TDS Return Filing

The details sent to ITD via TDS Return filing are;

  • Deductor
  • Deductee
  • Deduction
  • Challan

How to prepare for TDS Return filing

To prepare for TDS Return filing, follow the below steps;

  1. Input all the details to eTDS return filing software
  2. Validate the details with File Validation Utility (FVU)
  3. If errors found, rectify the errors and re-validate
  4. On validation successful, copy the .fvu file and Form 27A
  5. Take print out of Form 27A with seal and sign of authorized signatory mention on the form.

Submission of the TDS Statement

The submission of TDS Statement to the ITD is done in two ways;

  • In electronic format, at the TIN-FC
  • In digital format, by online upload at ITD Website

Electronic Format: This format of return filing is necessary to be filed by the following class of assesses as per Section 206.

  1. Corporate Deductors/ Collectors (Notification No. 205/2003 dated 26 August 2003)
  2. Government Deductors/Collectors (vide Finance Act 2004)
  3. Deductors, under section 44AB, who are required to get their accounts audited in the immediately preceding financial year.
  4. All Deductors, in a quarterly statement, who has equal to or more than 20 deductee records for one-quarter of the immediately preceding financial year.

Note – All other assesses except those defined above have the option either to submit the return in physical format or electronic format.

The deductor can file the statement at any TIN-FCs managed by NSDL. TIN-FC will issue a provisional receipt to the deductor. This is the proof of TDS statement furnished by the deductor.

Deductor has to pay the following as upload fees (plus applicable GST) for filing return at TIN-FCs;

No. of Records in TDS Statement Upload Charges
Returns up to 100 Records Rs. 31.15
Returns from 100 to 1000 Records Rs. 178
Returns more than 1000 Records Rs. 578.50

Digital Format: Deductor can file TDS Statement in digital format by uploading the statement at the ITD Website (www.incometaxindiaefiling.gov.in)

To upload the statement digitally, deductor has to first register through the TRACES website.

After successful registration, deductor has to file the returns using the given user id and password.

How to check the status of TDS Return filed

After three working days, the user can check the status of the statement submitted to TIN-FCs or uploaded to ITD.

To check the status of the statement, visit https://onlineservices.tin.egov-nsdl.com/TIN/JSP/tds/linktoUnAuthorizedInput.jsp

Revision of TDS Returns

After the submission of regular returns for any error found, deductor has to file a correction statement. This process is Revision of TDS Returns.

The deductor has to pay the charges again in case of filing the Revised Return. It can be filed any number of times to incorporate the number of changes.

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