Look into TDS intricacies—definition, quarterly filing steps, online/offline methods, key details, and crucial due dates. Uncover penalties for non-compliance.
Introduction
The filing of TDS returns is obligatory under the current provisions of the Income Tax Act in India. As per the Act, individuals or entities responsible for deducting taxes at the source on specific payments are required to submit quarterly returns. These returns encompass TDS/TCS statements featuring crucial details such as TAN, PAN, deduction amounts, payment types, etc. Various forms play a pivotal role in this process:
- Form 24Q: TDS statement for salaries
- Form 26Q: TDS on payments excluding salaries
- Form 27Q: Tax collected from dividend/interest for non-resident Indians
- Form 27EQ: Collection of taxes at source
Form 27A summarises the filed returns, tabulating amounts paid during transactions and the breakdown of deducted IT. Online filing is mandatory for government offices, private companies, or entities audited under section 44AB, and for those with 20 or more deductees in a quarter, as stipulated by section 206 of the Income Tax Act. Other assesses have the flexibility to file either online or over the counter at designated offices.
What Is TDS?
TDS is tax deducted at source when payment exceeds a certain threshold limit decided by the government in any transaction done for business or trade. Deduction of TDS is noticed in salary payments in general. When paying salaries to employees or paying for any services such as rent and co, TDS is to be deducted if the amount is above the threshold amount limit.
The TDS return is to be submitted to the Income Tax Department of India. Failing to do so will cost penalties and legal action against the firm’s owner. The TDS return must be filed before the due date.
| Quarter | Due Date |
| April to June (Q1) | July 31st |
| July to September (Q2) | October 31st |
| October to December (Q3) | January 31st |
| January to March (Q4) | May 31st |
Penalties For Non-filing/Delay
Depending on the case, penalties can be between ₹10,000 to ₹ 1,00,000.
Use our TDS calculator for quick TDS calculation on salary. Get the right TDS calculation formula every time.
What Is the Procedure to File TDS Returns Quarterly?
Online Process
- Go to the TIN website and download RPU version 4.1 (4.1 is the latest version. For now, you will always find the latest version present on this website.
- As mentioned below, prerequisites are mandatory for installing and extracting the rpu file.
- Java run-time environment Version 1.6.
- The operating system should be windows 2003 and above.
- The Java RPU utility should be installed on the same path as e-TDS/TCS FVU utility jars
- If you have all these prerequisites, the below screenshot page will appear.
- Choose Form No. from the drop-down according to the purpose for which you have charged the TDS.
- 24 Q for TDS on Salary
- 26 Q for TDS on Other than Salary
- 27 EQ for TCS
- 24 Q for TDS on Non-Residents
You must have all the data of the owner or firm for whom you are filing the TDS, such as PAN, TAN, address, all the challans etc. In case you file for yourself, keep the data handy. You can also keep the data in the form of an excel file and directly copy-paste it.
In the section’ Select type of statement to be prepared’: Choose Regular for fresh quarterly TDS returns and Choose Correction for making corrections to previously filed TDS returns.
Click on Regular for fresh quarterly TDS return filing online method.
Click on continue, and a page will appear where you have to fill three sections only.
- The form
- The challan
- The deductee details
The next steps section-wise, how to fill all these sections correctly is mentioned in the next steps.
On the form page, Under, Particulars of statement – You are only required to fill in the details marked with a star (*) symbol.
Fill in these details-
- PAN number*
- TAN number*
- Financial year* (Choose financial year Ex- 2021-2022)
- Type of Deductor* (Choose your Deductor for which you are filing the TDS. For example, company if you are filing for the company).
- For quarter Ended* (Choose a quarter like first, second, or third for which quarter you are filing the return).
Note- Quarter Ended* tab is present at the top of the page. Don’t forget. You can refer to the above screenshot to see it. All the details should be filled in very carefully. Always cross-check the financial year.
Now, after filling in the particulars of the statement, go below and fill in Particulars of Deductor (Employer)- You have to fill in all the basic details, Such as-
- Name
- Branch if any
- Mobile number
- Address
- Has the address changed Since the last return (select yes if yes, no if not)
Now, You have to fill out the Person’s Particulars responsible for Deduction of Tax – You have to fill in all the basic details, such as:
- Name
- Branch if any
- Mobile number
- Address
If the person is the same as the person for whom Particulars of Deductor details have been filed, Tick in the same above box.
- The last detail for this page you have to add is the Receipt number of the previous TDS return filed for the first quarter (Q1), and then click on save and save your file.
- Now come to the Challan page and fill in the details. For adding challan details
- Click on Add Rows present at the bottom of the page
- Enter the number of rows to be added- You have to enter the number of rows you want for entering the number of challans you want to add. Ex- If you have one challan, enter one. If you have ten challans, enter ten.
- Now, you have to fill in specific details of every challan. If you have data prepared in excel for challan details, you can directly paste it.
- Only those fields will be vacant which are relevant to your TDS return filing online, such as.
- TDS
- Surcharge
- Education Cess
- Interest
- Fee
- Penalty/others
- BSR code/Receipt number
- The date on which amount deposited through challan
- Serial number of challan
- Mode of deposit through book adjustment
- Interest to be allocated
- Others
- Minor head of challan 200-TDS payable by taxpayer 400-TDS regular assessment
Fill all the challan details in this manner correctly.
- Now come to the next page, Deductee details- here, the deductee details have to be filled- If you have two deductees against one challan, insert two rows. Insert four if you have four deductees, and likewise.
- To insert rows, click on insert rows on the bottom of the page and fill in all the deductee details.
Charges Per Deductee
| Up to 100 records | 43.50 |
| From 101 to 1000 records | 204.00 |
| More than 1000 records | 662.50 |
- After entering all the details, click on the create file button. If there is any error, the flash message box will tell you to fix the error. Then the below screen will appear.
- Now, You have to upload the challan file in this step. To download the challan file, click here. It will take you to the TIN website.
- Click on the Tan-based view, Enter the TAN number and Quarter period details, and save the downloaded file. It’s very simple.
- You have the file, so browse and select the challan file. In the second column, just provide the path of the location where you want to see the error reports. If there are any, sort them.
- Click on validate, the File validation successful dialogue box will appear, and Form 27A will also be generated, which has to be uploaded later.
- Go to www.incometaxefiling.gov.in and use your TAN number and password for login.
- Click on upload TDS under the TDS tab.
- Enter all the basic details such as Form, Quarter, etc. Browse and select the downloaded challan file and click on the upload button.
- Your TDS return filing online will be done successfully.
Offline Process
- You have to submit your TDS statements to your nearest TIN facilitation centre.
- If the submission is correct and successful, a receipt will be provided for acknowledgement.
- If rejected, a memo for a reason will be provided.
Conclusion
If you don’t have a TAN number, you can apply for it on the government site. Always cross-check the challan details and details entered. You can prepare an Excel sheet in the same format as challan details and directly paste it. No additional software is required for TDS return filing online.
Filing TDS returns can be a hectic process as it requires keen observation and a clear understanding of things. Inaccurate calculations may lead to loss as the government offers returns on TDS only if your income is below the threshold amount. Therefore, it would be best to consider visiting us at Vakilsearch for a hazel-free TDS return filing.
Also read:
- How to Claim & Verify status of TDS Refund
- Complete details about TDS Deposit rate
- How to pay TDS on property purchase?
- How to make TCS Payment Online?
- What is 194J TDS Rate?
- What Is TAN under TDS?
