TDS Returns Filing & Payment: A Step-by-Step Guide for Deductors

  1. What is Tax Deducted at Source (TDS)?

Tax Deducted at Source (hereinafter referred to as “TDS”) is an income tax that is deducted on making certain payments of expenses like rent, salary, commission, interest, professional fees, etc. The person paying the amount for such expenses should deduct TDS while making such payment if the threshold limit exceeds. As per the Income Tax Act 1961 (hereinafter referred to as “the Act”), a person or any company is required to deduct tax at the source if the money paid exceeds the specified limit. The person receiving such payment also has a liability to pay tax on their income.

  1. How Deductee Can Claim The TDS Deducted By The Person Making The Payment?

The payee will receive credits against the TDS payment and the same can be claimed against their actual tax liability while filing the Income tax return. The purpose of TDS may have been to reduce the chances of tax evasion by the recipient of the income. But, for an honest taxpayer, it also brings a few benefits. There are many sections under which TDS is deducted such as salary, professional Fee, rent payments, commission, interest on Securities and deposits, dividend payments, lottery and similar winnings, payment of royalty, salary Transfer, royalty payments, director’s Remuneration, transfer of Property, other interest payments etc.

  1. Who Can File TDS Returns?

Any person who has obtained a Tax Collection and deduction number (TAN Number) can file TDS returns. All the persons who make the specified payments exceeding threshold limits are required to deduct TDS and deposit the aforesaid TDS within specified statutory timelines. Taxcellent assistance in the timely filing of TDS returns.

  1. What Are The Due Dates For Filing TDS Returns?

The due date for the payment of TDS deducted is the 7th of the subsequent month whereas the due date for March is the 30th of April. In case of delay in the deposit of TDS, interest @1.5% on the amount of TDS would be levied. The due dates for filing TDS returns are as under:

Quarter Period Due Date for filing TDS returns
1st Quarter 1st April to 30th June 31st July 2023
2nd Quarter 1st July to 30th September 31st October 2023
3rd Quarter 1st October to 31st December 31st Jan 2024
4th Quarter 1st January to 31st March 31st May 2024
  1. What Are The Different Types of TDS Forms?

Particulars Form Period
TDS returns for Salary 24Q Quarterly
TDS returns for payment other than salaries 26Q Quarterly
TDS returns for payment of interest, dividend, or any other sum payments to non-residents 27Q Quarterly
TCS returns 27EQ Quarterly
  1. What is a TDS Certificate?

A Deductor deducts TDS and deposits it with the Income Tax Department. Then, the TDS return is filed on a quarterly basis and further, within 15 days from the due date of filing of the TDS return, a TDS certificate needs to be issued by the deductor to deductee which is evidence of the TDS deducted by the deductor deposited with the department and its credit has been given to the deductee.

  1. What is the Penalty For Failure To File The TDS Return?

In case of failure to file the TDS return within the statutory timeline, then the assessee needs to pay a penalty of Rs. 200/- per day until the default continues.

Taxcellent helps you to file TDS return and also assist in TDS payment on a monthly basis.

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