Apart from depositing the tax the deductor also has to do TDS return filing. TDS return filing is a quarterly statement that is to be given to the Income Tax department. It is necessary to submit the TDS returns on time. TDS return filing can be done completely online. Once the TDS returns are submitted the details will come up on Form 26 AS. While filing the TDS returns the various details to be mentioned are.
TDS RETURNS
Step – I
The data structure (file format) in which the e-TDS / e-TCS return is to be prepared has been notified in https://www.protean-tinpan.com/services/etds-etcs/etds-rpu.html
Step – II
e-TDS/e-TCS return in accordance with the file formats is to be prepared in clean text ASCII format with ‘txt’ as filename extension. e-TDS/e-TCS return can be prepared using Return Preparation Utility provided by Protean (formerly NSDL eGov) or any other third party software
Step – III
Once the file has been prepared as per the file format, it should be verified using the File Validation Utility (FVU) provided by Protean (formerly NSDL eGov)
Step – IV
In case file has any errors the FVU will give a report of the errors. Rectify the errors and verify the file again through the FVU.
Step – V
Generated .fvu file can be submitted at TIN-FC or uploaded at https://www.incometax.gov.in/iec/foportal/ website
For Online upload of TDS/TCS Statement, registration of organisation at https://www.incometax.gov.in/iec/foportal/ is mandatory
FREQUENTLY ASKED QUESTIONS (FAQS)
What is TDS return filing?
Tax deducted at source is the practice of reducing the tax evasion and the spillage by TDS payment mandatory at pre refined rates.
What is the concept of TDS?
TDS was introduced to collect the tax from the source of income. Here the deductor who is liable to make payment to the deductee should deduct the tax at source and remit the same into the account of the central government.
On what amount is TDS deducted?
TDS is deducted only the total income is taxable, the TDS will not be deducted in case the total income is Rs 2,50,000 and this amount is applicable for both men and women below the age of 60 years.
What happens if the TDS deducted is not deposited on time?
There is a penalty for not depositing or not deducting TDS on time, the employer can make the interest payment on such late payment of the TDS before filing the TDS returns or the demand raised by TRACES.
How is TDS calculated on salary?
First compute the exemptions that are available under Section 10 of the Income Tax (ITA) then subtract the exemptions that are found in step (2) from the gross monthly income calculated in step (1), multiply the obtained number from the above calculation by 12 as the TDS is computed on the yearly income.
Duration required for TDS refund?
It takes 30-45 days from the date of the E-verification of the income tax return to get the refund credited.
Who is eligible for a TDS return?
TDS returns are filed by employers or organizations who have a valid Tax Collection and Deduction Number (TAN). A person who is making specified payments that are mentioned under the Income Tax Act is required to deduct tax at the source and it to be deposited within a stipulated time.
What is the penalty for delay in TDS payment?
In case a person fails to file the statement of TDS within the due date there is a minimum penalty of Rs.10,000 which can be extended to Rs.1,00,000.
How long it takes to reflect the TDS in 26AS?
It takes 30-45 days to reflect the TDS deposit in Form 26AS, depending on the efficiency of the company’s accounts department.
Is it necessary to pay tax after TDS?
Most of the payment rates of the TDS are set in the income tax act and the TDS is deducted by the payer based on the specified rates. In case you have submitted the investment proofs to the employee and the total taxable income is below the tax limit then he doesn’t have to pay any tax.
Who issues the TDS Certificate?
Form 16/16A is the certificate of tax deduction at source and is issued on the tax deduction by the employer on behalf of the employees. These certificates provide details of TDS / TCS for various transactions between the deductor and the deductee. It is mandatory to issue the TDS certificates to the Taxpayers.
What is TDS reconciliation?
TRACES is the TDS Reconciliation Analysis and Correction Enabling System, an online portal of the Income Tax Department that helps in connecting all the stakeholders involved in the implementing and administration of Tax Deducted at Source and the Tax Collected Source.
What are TDS and TCS?
TDS is the tax deducted on the payment that is made to the company, in case the amount is exceeding certain limits. TCS is the tax that is collected by the sellers while selling something to the buyers. The Deduction of TCS is applicable on sales of goods like timber, scrap, mineral wood, and so on.
What is Form 27A TDS?
Form 27 A is the summary of e-TDS/TCS return ( Form 24Q.26Q,27Q, and 27EQ) which contain control totals of Amount Paid, Income Tax deducted at source, and tax deposited at the source.