Get support from Consultingera for 12 months TDS return preparation and filing. Our TDS Experts can help your business in filing error-free TDS returns and managing your TDS compliance.
Tax Deduction at Source refers to deducting tax from income at the point of payment. Entities and individuals who engage in tax deductions at the source are legally required to file TDS returns quarterly, detailing the specifics of these deductions. While navigating the intricacies of TDS returns and deposit TDS online can be challenging, consultingera provides expert assistance to streamline the process. Our team guides you through each step, ensuring your TDS return filing is accurate, TDS paid online, compliant, and timely, helping you easily navigate the intricacies of tax regulations.
Let consultingera Simplify Your TDS Return Filing Today – Get Expert Assistance for Accurate and Timely Compliance!
Tax Deducted at Source (TDS) is a mechanism where tax is deducted by the payer (deductor) when making certain specified payments to the payee (deducted). Tax is automatically deducted from an individual's payments during certain transactions, such as salary, rent, interest, professional fees, and commissions. Typically, the recipient is obligated to pay the income tax, but in TDS returns, payers or deductors are supposed to deposit TDS online. However, the TDS mechanism allows the tax to be collected upfront from the payments made, ensuring timely tax collection by the government.
The amount received after the TDS deduction is the recipient's net income, and they must then report the gross amount (before the TDS deduction) in their tax return.
Individuals, HUFs, firms, companies, and other entities required to deduct TDS under the Income Tax Act, 1961 (depending on turnover and specific conditions).
The deposit of TDS refers to the process of remitting the deducted TDS to the government within the prescribed timelines. Concerned persons must ensure timely deposits to comply with tax regulations and avoid penalties.
Salaries, rent, contractor/sub-contractor fees, professional fees, commission, interest (other than interest on securities), etc.
Please ensure you comply with TDS regulations if any of the following apply to your business. As threshold may be revised, ensure to verify with current provisions,
TDS rates vary based on the type of income, including salaries, professional services, commissions, rent payments, and interest from investments. The applicable rate depends on the nature and total income level. Remember, The TDS Rates may be subject to change
Section | Nature of Payment | Basic Rate* |
Salary | As per Slab | |
Interest (other than on securities) | 10% | |
Payment to contractors/sub-contractors | 1% (Individual/HUF), 2% (Others) | |
Rent (Land/Building/Machinery) | 2% / 10% | |
Professional/Technical Services | 10% |
TDS filing obligations extend to employers and organizations that possess a TAN (Tax Deduction and Collection Account Number). This requirement also applies to individuals subject to audit under Section 44AB, and those in government or corporate positions who are expected to file TDS returns online quarterly.
A wide array of entities, including individuals, collectives, Hindu Undivided Families (HUFs), corporations, local authorities, partnerships, and other associations, are eligible as deductors and deposit TDS online. It must be filed with the right forms before the TDS return filing due date to avoid legal problems.
Under the provisions of the Income Tax Act, TDS paid online, and the TDS returns must be filed for transactions involving:
The TDS return due date is crucial for ensuring compliance with tax obligations. For each financial quarter, the due dates are as follows:
| Quarter | Period | TDS Return Due Date |
|---|---|---|
| Quarter 1 | April to June | 31st July |
| Quarter 2 | July to September | 31st October |
| Quarter 3 | October to December | 31st January |
| Quarter 4 | January to March | 31st May |
To fulfil TDS payment obligations effectively, it's important to adhere to these TDS return due date and ensure the timely filing of TDS returns.
Below, we have outlines the penalties for TDS non-compliance,
Assessing Officer may impose penalty up to the amount of TDS if not deducted or remitted, in addition to interest and late fees.
TDS forms depend on the income of the deductee or the type of deductee paying taxes. The TDS forms are mentioned below:
| Form | Periodicity | Particulars |
|---|---|---|
| Form 24Q | Quarterly | The quarterly statement for TDS from "Salaries." |
| Form 26Q | Quarterly | Quarterly statement of TDS in respect of all payments other than “Salaries.” |
| Form 27Q | Quarterly | Quarterly statement of TDS from interest, dividend, or any other sum payments to non-residents |
| Form 27EQ | Quarterly | Quarterly statement of collection of tax at source |
Under Section 192 of the Income Tax Act 1961, an employer deducts the TDS while paying the salary to an employee. An employer has to file the Salary TDS returns in Form 24 Q, which needs to be submitted every quarter. The details of the salary that is paid to employees and the TDS deducted from the payment are to be specified in Form 24 Q. In other words, Form 24 Q is the quarterly statement of the payment that is made to the employee, and the TDS is deducted that is made by the deductor.
When a taxpayer pays taxes, the payee deducts TDS on certain occasions. Form 26Q is used to file TDS details on payments other than salary. The Form mentions the total amount that is paid during a particular quarter and the TDS amount that has been deducted. It is necessary to submit Form 26 Q every quarter.
Form 27 Q is a TDS return or a statement that contains the details of the Tax Deducted at Source on payments other than salary made to a Nonresident India and foreigners. Form 27 Q is to be furnished every quarter or before the TDS return filing due date. Form 27 Q contains the details of the payments that are made and the TDS deducted on payments made to the NRI by the deductor.
Form 27 EQ contains all details about tax that is collected at the source. According to Section 206 C of the Income Tax Act 1961, this form has to be filed every quarter. The Form has to be submitted by both corporate and government collectors and the deductors.
Ensure that the appropriate forms are filed before the TDS return due date for legal compliance.
TDS returns must be filed to fulfil legal obligations and ensure compliance with tax laws. Here's why TDS filing is necessary:
As mentioned, the TDS return must be filed along with the requirement of TDS paid online.For the seamless filing of TDS returns online, it's essential to have the following details ready:
Learn the step-by-step process of how to file TDS return online with ease through consultingers' expert guidance.
At consultingera, our expert can guide you on how to file TDS return, providing expert guidance every step of the way.
Once the TDS returns are submitted and errors are detected like incorrect challan details or the PAN is not provided or incorrect PAN is provided then the tax amount credit with the government will not be reflected in the Form 16A / Form 26AS. To make sure that the amount is properly credit and reflected in Form 16/ Form 16A / Form 26 AS a revised TDS return has to be filed.
The revised TDS returns can be filed only when the original TDS return is accepted by the TIN central system. The assessee can check the status of the TIN Central System. The assessee can check the status of the TDS returns that are filed online by providing the required details, such as the PAN and the Provisional Receipt Number/ Token number on NSDL.
The revised TDS returns have to be prepared by using the most recent consolidated TDS statement. The certificate can be downloaded from the TRACES website.
TDS Credit can be claimed by the deductor. To claim the credit of the TDS, the deductee must mention the details of the TDS in his returns of income. The deductee is required to take due care to quote the correct TDS certificate number and the TDS details while filing the returns of income.
In case of incorrect details that are provided by the deductee, there will be a discrepancy with the tax credit for processing the TDS returns.
With consultingera you get expert guidance throughout the TDS return filing process. Our experienced professionals help you navigate complex tax regulations on how to file TDS return effortlessly. We ensure compliance by staying updated on the latest tax laws, helping you avoid penalties and legal issues. Our streamlined service simplifies TDS calculations, form submissions, and documentation management. Whether you're an individual taxpayer or a business, our comprehensive support ensures a stress-free filing experience.