TDS (Tax Deducted at Source) Returns

Starting from ₹1,500 + GST

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TDS (Tax Deducted at Source) Returns


Tax Deducted at Source (TDS) is a government mechanism for collecting taxes based on income generation. In this process, taxpayers pay taxes at the end of the year, while a specified percentage is deducted and deposited by the government on behalf of the recipient. Filing TDS returns is the responsibility of the deductor, who submits detailed statements of tax collected and deposited. TDS ensures timely tax collection, minimizing delays and facilitating smoother tax compliance. Filing accurate TDS returns on time is essential for meeting legal obligations and avoiding penalties. When filing TDS returns, the form you choose depends on the type of payments made:

  • Form 24Q: TDS on salaries
  • Form 26Q: TDS on payments other than salaries
  • Form 27Q: TDS on payments made to non-residents
  • Form 27EQ: TDS on the collection of tax at the source

Each form has a specific purpose and must be submitted according to the nature of the transactions.

Benefits of TDS Returns


Filing timely TDS returns ensures you comply with regulations and avoid penalties.
Deductees can easily claim tax credits in their income tax returns, thanks to accurate and timely TDS filings.
Maintaining detailed and compliant TDS records improves your standing with regulatory authorities and business partners.
TDS returns promote transparency, with taxpayers’ records directly linked to Form 26AS, making it easier to track tax payments.

Process of Filing TDS Returns


Step 1

Obtain a TAN

Every entity that deducts TDS must have a valid Tax Deduction and Collection Account Number (TAN). TDS cannot be deducted or deposited without this number.

Step 2

Select the Right Form

Choose the appropriate TDS return form (e.g., Form 24Q, Form 26Q, Form 27Q) based on the nature of the transactions.

Step 3

Collect Required Data

Gather necessary details like PAN numbers, challan numbers, and payment amounts.

Step 4

Fill the Form Using TDS Software

Input all the collected data into TDS preparation software to complete the form.

Step 5

Validate the File

Use the File Validation Utility (FVU) to ensure the file meets the correct format and contains accurate information.

Step 6

Submit the Return Online

Log in to the TIN NSDL website and upload the validated return file. Upon successful submission, you’ll receive an acknowledgment number for reference.

Documents Required for TDS Returns


TAN (Tax Deduction and Collection Account Number)
PAN Number
Payment Information
TDS Certificate
Form 27A
Bank Statements

FAQs


What are the due dates for filing TDS returns?

TDS returns must be filed quarterly by the 31st of July, October, January, and May.

What are the consequences of missing the TDS return deadline?

A penalty of ₹200 per day is imposed for late filing until the TDS return is submitted.

What is Form 26AS?

Form 26AS is a consolidated tax statement reflecting all tax payments, including TDS credits.

How can I check my TDS return status?

Use your TAN and acknowledgment number to check the TDS return status on the TRACES portal.

How can I download my TDS certificate?

The TDS certificate can be downloaded from the TRACES portal by the deductor.

Can TDS be reclaimed as a refund?

Yes, excess TDS can be reclaimed as a refund by filing an income tax return.

Is TDS applicable to freelancers?

Yes, TDS is applicable to freelancers if their income exceeds a specified threshold.

What happens if TDS is not deducted?

Failure to deduct TDS can result in penalties and disallowance of expenses in tax returns.

Can a TDS return be filed without a TAN?

No, a valid TAN is mandatory for filing TDS returns.

Is TDS deducted on foreign payments?

Yes, TDS is deducted on payments made to non-residents and is reported using Form 27Q.

Are individuals required to file TDS returns?

Individuals like business owners and landlords must file TDS returns if they are deducting tax at source.

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