TDS Return Filing

TDS Return filing is mandatory for deductors to submit to Income tax department every quarter. Filing of TDS Returns requires a PAN of the deductor and deductee. It also requires TAN of the deductor and Digital Signature Certificate of deductee.

Package Inclusions –

  • File your TDS Returns before the due date
  • Easy Process to File your TDS Return
  • Quick TDS Return Filing by Expert

get a quote

Introduction to TDS (Tax Deducted at Source)

Tax Deducted at Source or commonly referred as TDS is the amount of tax deducted from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest, etc. The TDS amount is deducted at the time of making payments. Here, the tax is deducted when the money is credited to the payee’s account or at the time of payment, whichever is earlier.
TDS is deducted at the time of payment of salary or life insurance policy. The amount deducted as TDS is then deposited to the Income - tax department. By way of TDS, some portion of the tax is automatically paid to the Income Tax department. Thus, TDS is considered as a means of reducing tax evasion.

Who is Liable to Deduct TDS as per Income Tax Act?

The list of the deductors who can deduct TDS is mentioned below:

  • Individuals
  • Hindu Undivided Family or HUF
  • Limited Companies or organisations
  • Partnership Firms
  • Body of Individuals
  • Association of Individuals
  • Local Authorities

Deduction Rate of TDS

On salary income, TDS is deducted depending upon the income tax slab rates applicable to a person. For other types of income such as rent, interest on securities, insurance commission, dividend, etc. the TDS rates are fixed and vary between 10% and 20%.Some of them are shown in table below:

Section

 

Nature of Payment

TDS Rate of Individual/HUF in percent

TDS Rate for NRI

192

 

Payment of salary

As per category in income tax

As per category in income tax

194B

 

Income earned by winnings from card games, lotteries, and other games

30%

30%

194BB

Income from winning of horse races

30%

30%

194EE

Payment made into National savings scheme (NSS) deposit

10%

10%

194F

Payment made towards repurchase of units by Unit Trust of India or Mutual Funds

 

20%

20%

194G

 

Income that arises from sale of lottery tickets/commissions and/or other transactions

5%

5%

194LBB

 

Investment fund which pays income to the unit holder [except for incomes that are exempted under Section 10 (23FBB)]

10%

30%

194LBC

 

Income generated from investments made in securitisation trust as per Section 115TCA

25%

30%

Advantages of TDS

The benefits of TDS are as follows:

  • It prevents the assessee from defaulting in paying taxes.
  • It ensures that the source of the Government’s revenue remains stable.
  • It widens the scope of base tax collection
  • The system of TDS is suitable for both the deductor and the deductee because the tax is deducted automatically.
  • It reduces the burden of paying huge amount of taxes. By distributing the total amount of tax over months, tax payment becomes easy.

Eligibility Criteria to file TDS Returns

fDue Dates for Filing of TDS Returns

The following are the due dates for filing TDS returns:

Quarter

 

Quarter Period

Last Date of Filing of TDS Returns

 

1st Quarter

 

From 1st  April to 30th June

31st July

2nd Quarter

 

From 1st July to 30th September

 

31st October

3rd Quarter

 

From 1st October to 31st December

 

31st January

4th Quarter

 

From 1st January to 31st March

31st May

What is TAN?

The main purpose of the Tax Deduction and Collection Account Number which is commonly known as TAN, is related to deduction or collection of tax at source. As prescribed in Section 203A of the Income Tax Act, 1961 obtaining TAN is mandatory for individuals or businesses who are authorized by the government to deduct or collect tax. In case of any failure to quote TAN Number in documents can result in a penalty of Rs. 10,000

TDS Return Filing

TDS return filing is a quarterly statement which must be submitted to the Income Tax Department by the deductor (i.e. all persons responsible for deducting TDS). TDS Return contains the details of TDS deducted and deposited by deductor, PAN of deductor and deductee, TDS challan information, type of payment, amount of TDS deducted, etc. The TDS return filing must be done by every assessee who has deducted TDS at prescribed intervals.

An investment proof may be submitted by an employee to his/her employer for the purpose of claiming deductions and, therefore, his taxable income falls below the maximum amount not chargeable to tax. In such cases, no TDS should be deducted by the employer.

Types of TDS forms

The deductor being liable to deduct tax and to fileTDS Return form as the supporting document, it is important to note that there are different types of TDS Return Forms available for different situations. The type of TDS Return Form which must be submitted is based on the nature of income of the deductee or the type of deductee who pays the TDS.