TDS is a source of collecting tax by Government of India at the time when a transaction takes place. Here, the tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier.
In case of payment of salary or life insurance policy, tax is deducted at the time of payment. The deductor then deposits this TDS amount to the Income Tax (I-T) department. Through TDS, some portion of your tax is automatically paid to the I-T department. Thus, TDS is considered as a method of reducing tax evasion.
TTDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments :
• Payment of Salary
• Income by way of “Income on Securities”
• Income by way of winning lottery, puzzles and others
• Income from winning horse races
• Insurance Commission
• Payment in respect of National Saving Scheme and many others.
1. Certificate of Incorporation
2. MOA/ AOA of Company
3. Digital Signatures of Director
4. Bank Statement of Company
| Quarter | Quarter Period | TDS Return Due Date |
|---|---|---|
| 1st Quarter | 1st April to 30th June | 31st August 2018 |
| 2nd Quarter | 1st July to 30th September | 31st October 2018 |
| 3rd Quarter | 1st October to 31st December | 31st January 2019 |
| 4th Quarter | 1st January to 31st March | 31st May 2019 |
| Particulars | Form No. |
|---|---|
| TDS on Salary | Form 24Q |
| TDS where deductee is a non-resident, foreign company | Form 27Q |
| TDS on payment for transfer of immovable property | Form 26QB |
| TDS in any other case | Form 26Q |
Various forms are used for filing TDS return, depending on the purpose of deduction. These returns have to be in company with a signed verification in Form No. 27A. It is a form that controls the quarterly statements. This has to be filed by deductors together with quarterly statements. It summarizes the control totals of “amount paid” and “income tax deducted at source” which has to match with the totals in TDS return.
Validation of the TDS Return File
The procedure for the validation of TDS return file is given below:
• Fill in the required details in the file
• After filling in the details, update it in the portal validation utility tool
• The tool is available on NSDL website for free
• In case any error is found in the file, FVU will provide a report for the same
• Make the necessary changes and verify the file again through the FVU.
Penalty for delay in filing TDS Return
According to Section234E, if an assessee fails to file his/her TDS Return before the due date, a penalty of Rs 200 per day shall be paid by the assessee until the time the default continues. However, the total penalty should not exceed the TDS amount.
Non-filing of TDS Return
If an assessee has not filed the return within 1 year from the due date of filing return or if a person has furnished incorrect information, he/she shall also be liable for penalty. The penalty levied should not be less than Rs 10,000 and not more than Rs 1,00,000.
TDS Return Preparation Utility
Deductors/collectors are required to prepare e-TDS/TCS statements as per these file formats using, NSDL e-Gov. Return Preparation Utility or in-house software or any other third party software and submit the same to any of the TIN-FCs established by NSDL e-Gov. NSDL e-Governance has developed a software called e-TDS Return Preparation Utility (RPU) to facilitate preparation of e-TDS returns. Users must pass the e-TDS/ TCS return file generated using RPU through the File Validation Utility (FVU) to ensure format level accuracy of the file. This utility is also freely downloadable from NSDL e-Gov TIN website.
Revised TDS Return
After submitting the return, if any error is detected, such as incorrect challan details or PAN not provided or incorrect PAN provided, the tax amount credited with the government will not reflect in the Form16/ Form 16A/ Form 26AS.
To facilitate conformity and make sure that the tax amount is properly credited and reflected in the Form 16/Form 16A/ Form 26AS, a revised TDS return has to be filed.