Tax Deduction at Source (TDS) Returns is designed to collect tax from earners at the source. In accordance with the Income Tax Act of 1961, a tax-detector must submit a periodic TDS statement (quarterly) by the specified due date containing information about the tax deductions made during the quarter. The rate at which TDS Return will be subtracted is determined by the Department of Income Tax. Before making the payment, the detector must deduct the TDS and deposit it with the government. The entity or person who deducts the specified amount is referred to as the “detector,” and the entity or person whose tax is being deducted is referred to as the “deductee.” In this article, we will go through how to file TDS Return in India.

What is Filing a TDS Return?

The detector is also required to deposit the tax and file TDS Return. A quarterly statement related to TDS Return filing must be sent to the Income Tax division of the respective place. It is necessary to submit the TDS Returns on time. Your TDS Return can be submitted totally online. After the TDS Returns are submitted, information from them will appear on Form 26. When submitting TDS Returns, the following information must be provided-

1. Both the deductee’s and the detector’s PAN Card number 
2. Tax payment made to the government of India 
3. TDS challan details must be provided 
4. other, if any needed or required by the concern authority

Who can File TDS Return?

Employers and organizations can file TDS Return if they have a valid Tax Collection and Deduction Account Number (TAN). For the following payments, everyone who receives one of the specific payments listed by the Income Tax Act is required to withhold tax at the source and deposit it within the allotted time.

• Wage payment
• Revenue from securities
• Income from winning puzzles, lotteries, and other contests
• Winnings from horse races
• Commissions for insurance.
• Payment for the National Savings Plan and other programs

Pre-requisites

The pre-requisites to file TDS Return are as follows-

1. To file TDS Return online, you need a registered TAN.
2. Utilize the RPU Return Preparation Utility to create the TDS statement.
3. Utilize the FVU File Validation Utility to verify the TDS statement.
4. You must have a Digital Signature Certificate (DSC) that is registered for electronic filing.
5. You must also include the Principal Contact’s bank account information.

Procedure for TDS Return Filing

Here is the step-by-step guide to file TDS Return- 

1. First, the multiple-column Form 27 A needs to be filled out, and if it’s on paper, it needs to be checked alongside the electronically filed E-TDS return.
2. The tax that is withheld at source and the total amount paid must be accurately filled out and totalled in the following step.
3. On Form 27 A, the organization’s TAN must be mentioned. If the TAN supplied is incorrect, the verification process will be tough.
4. The correct challan number, the method of payment, and the tax information must all be included when filing TDS returns. There will be a mismatch if the challan number or payment date are entered incorrectly, and new TDS reports must be completed as a result.
5. The standard Form used for filing the e-TDS must be used in order to maintain uniformity. It is necessary to input the 7 Digit BSR to make tallying easier.
6. TDS Returns must be physically submitted at the TIN FC, which is run by NSDL. If filed electronically, they may be uploaded to the NSDL TIN’s main website.
7. A token number or a temporary receipt is given if the information submitted is accurate. This serves as evidence that a TDS Return was submitted.
8. If the returns are rejected, a non-acceptance memo is provided along with the reason why, and new returns must be submitted.

Penalty for not filing a TDS Return on time 

Continued failure to file TDS^[1] Return will result in a daily fine of Rs. 200. However, the late fees cannot be higher than the cost of filing the TDS Return under section 234E. The authority has the authority to require the defaulter to pay the fine, which may be in the range of Rs. 10,000 to Rs. 1 lakh under section 271H.

Conclusion

The gross amount that the payee pays the receiver is reduced by TDS. The general provisions of the Income Tax Act of 1961 require the filing of TDS Returns. Quarterly returns must be filed. TDS Returns that are paid late will incur the fine. To avoid getting into any form of trouble, it is suggested to use professional assistance. You may directly contact Bizadvisors.io to file TDS Return.

Read our article:Avoid These Common Mistakes While Filing Income Tax Returns