TDS Return Online Filing

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TDS Return Filing Services - An Overview

Online TDS Return Filing

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Tax Deducted at Source (TDS) is nothing but income tax that is deducted from the amount paid at the time of making specified payments. The concept of TDS was brought in by the government with the objective of collating tax from the very source of income. In return, the individual from whose income the tax was collected becomes entitled to receive a credit of the amount so deducted on the basis of Form 26 AS.

TDS return filing services is done as per the Income Tax Act, 1961. TDS return is submitted by the deductor for the end of every quarter to the Income Tax Department.

What is TDS?

Tax Deducted at Source is a component of the income tax inaugurated by the Central Government to deduct the amount of tax from the source of income. The added advantage of TDS is that the sum is adjusted against the final tax liability. The excess of tax already deducted and paid on the taxpayer’s behalf is returned back to him.

When should TDS be deducted?

TDS should be deducted from any person making specified payments under the Income Tax Act. Please note that no TDS is deducted from a person or a member of the Hindu Undivided Family whose books are not required to be audited within a sum of Rs 50,000.

Also, if you submit evidence claiming deductions and your taxable income is below the taxable limit specified in the Income Tax Act, you are not liable to pay any tax and no TDS is deducted on your income. Ideally, the TDS rates are set up depending upon the categories of recipients and the income range of persons.

Why is TDS filing necessary?

TDS return filing services is important so as to reduce the risks of tax evasion by the recipient of incomes for the tax is deducted at the source itself. It acts as evidence that the necessary taxes have been duly filed and paid to the Central Government. By deducting the tax from the source itself, the government ensures that the tax is collected on the day it is generated rather than at a later date. 

The government has also made the provision that if the taxpayer feels his/her total income in a financial year will be less than the threshold limit for TDS return filing services, he/she may be allowed to ask the payer not to deduct TDS by submitting Form 15G/15H. 

How to do Online TDS return filing?

Let us see how to file a TDS return online:

  1. A TAN (Tax Deduction and Collection Account Number) is necessary to do TDS return filing services in India. You should also make sure it is registered with the Income-tax authority.
  2. A TDS statement has to be prepared every quarter in order to do an online TDS return filing. This can be done through Return Preparation Utility. The same has to be then validated through File Validation Utility.
  3. For doing online TDS return filing through DSC, you must have a valid Digital Signature Certificate.
  4. For doing online TDS return filing through EVC, you must have a Demat or valid bank account. You must also ensure that your Aadhar is linked with your Permanent Account Number (PAN) to upload your returns.

How to upload TDS Statement for online TDS Return Filing?

In order to do TDS return filing services, you must ensure that you have a TDS statement ready. Here are a few steps to guide you to upload your TDS statement on the official web portal of the Income Tax Department:

  1.   Visit the official website of Income Tax Department e-Filing (https://www.incometaxindiaefiling.gov.in/home).
  2.   Sign up on the portal by filling in your information. Click Login and you will be re-directed to your user dashboard.
  3.   Locate the ‘TDS’ drop-down menu on the home page and select the ‘Upload TDS’ option.

4.    A form will appear on the screen. Fill in the required details and click on the individual defaults in filing or submitting a TDS return/statement:

1. In case of failure to submit returns:

Under Section 272A (2) of the Income Tax Act, 1961, a penalty of Rs. 100 will be levied for each day the returns remain unsubmitted, subject to the TDS amount.

2. In case of failure to file TDS returns on time:

Under Section 234E of the Income Tax Act, 1961, a penalty of Rs. 200 will be levied for each day that the returns remain unfiled, subjected to the maximum of the TDS amount.

3. In case of defaults in the filing of TDS statement:

Under Section 271H of the Income Tax Act, 1961, a penalty of Rs. 10,000 to Rs. 1 lakh will be charged depending upon the default in case the deductor fails to do TDS return filing services within the due date.

4. In case of providing incorrect details:

Under Section 271H of the Income Tax Act, 1961, a penalty of Rs.10,000 to Rs.1 lakh will be charged in case the deductor submits incorrect information pertaining to PAN, particulars in the challan, TDS amount, etc.

5. In case of non-payment of TDS:

Under Section 201A of the Income Tax Act, 1961, interest will be levied along with the penalty in case the full amount of TDS is not paid within the due date. In case a part of the taxable amount or the whole of it is not deducted at the source of income, interest will be levied at the rate of 1.5% every month beginning from the date on which the tax was deductible to the date on which the tax is actually deducted.

FAQ's

Yes. Challan Identification Number is necessary for all non-Government deductors.

PAN of the deductors needs to be submitted by non-Government deductors. It is necessary to specify PAN of all deductees lacking which credit of tax deducted will not be awarded.

The due dates for filing quarterly TDS returns, both electronic and paper are as under:

Quarter                                            Due date for TDS statements (all Deductors)

April to June                                   31 July

July to September                         31 October

October to December                  31 January

January to March                          31 May