TDS Return Filing – The what, who, pre-requisites and all details
Everything you need to know about TDS return filing
In this post, we’ll go through how to file a TDS return, who has to do it, the requirements, and the specifics. Let’s take a closer look at each section:
- What is TDS return filing?
- Who is required to file TDS returns?
- How to file TDS Return Online?
- Procedure for validation of TDS Returns
- Important Points to Know before Filing the TDS Return
- Details to be verified before TDS return filing
- What are the details submitted in TDS Return Filing
- How to prepare for TDS Return filing
- Submission of the TDS Statement
- How to check the status of TDS Return filed
- Revision of TDS Returns?
- Prerequisites for TDS return filing
- FAQ
What is TDS return filing?
TDS returns are best defined as a quarterly statement or summary of all TDS-related transactions that occurred during the specified quarter. It typically includes information on the TDS collected and submitted by the deductor with the Income Tax Authority. A TDS return statement must contain the following information:
- The PAN of the deductor and deductee.
- Details of TDS paid Challan
- Details of the challan
Particularly, all of the information contained in the online TDS return form is also included in the payee’s Form 26AS. Everyone who is subject to the tax slabs set by the IT department must have it.
Typically, qualified persons can file TDS returns using the IT department’s e-filing portal. If a person fails to file TDS returns within one year of the due date, he or she must pay a penalty of at least Rs.10000.
Similarly, a penalty must be paid if wrong information is provided. Section 234 specifically states that if a taxpayer fails to file a TDS return by the due date, he or she shall pay a penalty of Rs.200 each day until the return is filed. Regardless, the overall obligation cannot exceed the TDS amount at any moment.
Who is required to file TDS returns?
The individual who deducts TDS must provide the TDS Return. It is necessary to submit TDS Return on 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 CompanyForms required to file a TDS return
How to file TDS Return Online?
The following is a step-by-step guide to filing TDS returns online:
- Firstly, a Form 27 A that has many columns needs to be filled and, in the case of a paper copy of the Form, it must be validated together with the E-TDS return that has been filed electronically.
- The next step is to correctly input the tax deducted at source and total the payment.
- Form 27 A must include the TAN of the organisations. If the provided TAN is inaccurate, the verification procedure becomes difficult.
- The correct challan number, the method of payment, and the tax information are all required when completing TDS reports. A mismatch will occur in the TDS returns if the challan number or payment date is incorrect.
- A mismatch will occur in the TDS returns if the challan number or payment date is incorrect.
- It is necessary to submit physical TDS returns to the TIN FC, which is managed by NSDL.You can submit them online on the NSDL TIN’s official website if you are filing online.
- If the information given is correct, a token number or provisional receipt is given. This shows that a TDS return has been filed.
- When returns are rejected, a non-acceptance memo along with the reason for the rejection is issued, and the returns must be resubmitted.
Procedure for validation of TDS Returns
The process for validating TDS Returns is described below:
- The file must first include every relevant detail.
- Once the information has been entered, it needs to be updated on the validation utility tool that is accessible through the portal.
- The tool is available for free on the NSDL website.
- If there are any issues in the file, the File Validation Utility (FVU) will report them.
- Before submitting the file for verification, make the necessary modifications to it.
Important Points to Know before Filing the TDS Return
- Fill out Form 27A correctly.
- Form validation with e-TDS return filing
- All forms, including Form No. 27A, Form No. 24, Form No. 26, and Form No. 27, must be accurately filled out, paying particular attention to the amount paid and the TDS.
- Confirm that Form No. 27A has the Tax Deduction Account Number (TAN).
- Verify that the TDS deposit information was provided accurately.
- Mention all the specifics that the authorities have advised.
- You must correctly file your TDS return.
- At any of the TIN-FCs run by NSDL, TDS returns forms are filed.
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;
- Input all the details to eTDS return filing software
- Validate the details with File Validation Utility (FVU)
- If errors found, rectify the errors and re-validate
- On validation successful, copy the .fvu file and Form 27A
- Take print out of Form 27A with seal and sign of authorized signatory mention on the form.
Submission of the TDS Statement
There are two ways to submit a TDS Statement to the ITD:
- In electronic format, at the TIN-FC
- In digital format, by online upload at ITD Website
Electronic Format: According to Section 206, the following class of assesses must file their returns in this way.
- Corporate Deductors/ Collectors (Notification No. 205/2003 dated 26 August 2003)
- Government Deductors/Collectors (vide Finance Act 2004)
- Deductors who must have their accounts audited in the most recent financial year under section 44AB.
- 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 serves as proof for the deductor’s TDS statement.
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, the deductor has to first register through the TRACES website.
After successful registration, the 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, the 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.
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)
FAQ
1. Is there any penalty if you fail to file TDS returns within the last date?
Ans: According to Section 234E, an assessee who files TDS after the due date must pay a penalty of ₹200.
2. What happens in case of errors in the TDS return file?
Ans: An assessee who detects an error must file a revised TDS return
3. How much tax is deducted for any payment?
Ans: A tax deduction usually ranges between 1% and 10%.
And with that, we end our discussion on the TDS Return Filing. If you have any questions, drop them in the comment section below.
