This blog explains the steps to be followed for filing TDS Returns Online, mentions prerequisites for filing TDS returns, and the eligibility criteria for TDS return.
The TDS returns can be filed using physical submission mode or electronic payment mode. All corporate assesses and other estimates under the category mentioned in section 44AB of the Income Tax Act, 1961 are responsible for TDS filing electronically. Online TDS return filing has made the whole process less time-consuming, efficient, and transparent. It is very easy to track the status and identify the defaulters.
Online filing of TDS Return
Online filing of TDS can be done through the portal of NSDL (National Securities Depository Limited) or using the portal of UTITSL (UTI Infrastructure Technology and Service Limited).
The steps that need to be followed:
- Step-1 Visit the website of the Income Tax PAN Services Unit
- Step-2 To ask for a new PAN, you will need to use Form 49A or Form 49AA
- These forms need to be filled with your relevant personal details.
- After filling out the form meticulously, you need to click the submit button.
- For successful submission of the form, you will receive the acknowledgement coupon number, which will be displayed on the screen.
- For future reference, this acknowledgement coupon needs to be saved and printed.
- Step-3 After receiving this acknowledgement form, you need to send it to the PAN service provider, furnishing it with other details like-
- identity proof,
- address proof,
- date of birth document
It is important to note that the name and its spelling on these documents should be the same as that mentioned in the PAN application form.
- Step-4
The acknowledgement form needs to be furnished with your two recent coloured photographs, which must be fixed at the designated place mentioned in the state.
- Step-5
If your communication address is within India, your PAN application fee will be ₹105 (including taxes); for outside India, the communication PAN fee is ₹971(including tax). The amount is payable by demand draft, debit card to NSDL. For payment through demand draft or credit card payment will be in favour of UTIITSL.
Payment through internet banking or debit card/credit card needs to be carried out when filling in the PAN application form. After you make the payment, you will receive a payment receipt. The receipt of the payment needs to be attached along with the acknowledgement form.
Checklist for PAN application
- Duly signed acknowledgement form
- Two passport size coloured photographs,
- Proof of identity,
- Proof of address,
- Proof of date of birth
- Receipt of the payment/payment proof
All these documents need to be submitted to the PAN service provider within 15 days after submitting the online application of PAN.
Details to be written on top of the envelope-
- APPLICATION FOR PAN ( in words)
- Acknowledgement / Coupon Number
The PAN service provider processes the applications only after the realisation of payment.
Refund of TDS for Different Types of Payments
You can apply for a tax refund if you satisfy any of the following cases-
- Senior Citizens with Fixed Deposit Accounts
Senior citizens are exempted from the liability of paying tax for receiving any interest income for their fixed deposit accounts. So, if you are someone above the age of 60, you must provide Form 15H to stop your bank from deducting tax on your fixed deposit interest.
In case of any extra deduction, the IT department will refund the excess amount to your specified bank account during the filing of income tax returns after duly computing your exact tax liability.
- FD Interest Income is Lower than Tax Slab
If you belong to a tax slab exempted from tax payment liability, your bank has charged tax on the fixed deposit interest income. There are ways to recover the amount paid in the formal tax.
- For example, you can ensure the refund by submitting to the respective bank and informing them of your exact income slab.
- Or you can mention the same while filing ITR. After duly calculating your tax liability IT department will initiate your tax refund and transfer the amount to your specified bank account.
- Company Deducts more TDS
If your employer has deducted more than your actual tax liability, you can settle the issue during your ITR filing. While filing the return, you need to mention your bank name and IFSC code where you want the refund to be deposited. After verifying your claim, the IT department will initiate the refund process.
Criteria for Filing TDS Return
Before filing for TDS returns, the following criteria set by the Income Tax Department needed to be fulfilled. If you are authorised for this task, you need to follow the following checklist.
- You must have a valid and registered Tax Deduction Account Number (TAN), a 10-digit number issued by the income tax department for your e-filing.
- For preparing a TDS statement, you should use Return Preparation Utility (RPU).
- You should use File Validation Utility (FVU) to validate the TDS statement.
- To authenticate TDS returns, you need to have a valid DSC certificate to use the digital signature facility.
- You need to provide details of your bank account / Demat account / PAN detail, which is linked with Aadhaar for electronic verification via EVC.
A deductor must pay the entire TDS amount before filing TDS returns.
Eligibility Criteria for TDS Returns
TDS filing process assigns the deductor the responsibility to collect taxes from the deductees’ source of income before processing payment itself.
It is important to understand various payment categories for which TDS returns should be filed.
The categories include:
- Salary payments
- Any form of windfall income like winning lotteries, winning cash prizes in game shows, etc
- Income earned from any other activities like winning horse races etc
- Income from securities
- Commission on insurance
- Payment received after the sale or purchase of any immovable property
- Income from rent payment
- Interest income for investing in schemes like National Savings Scheme
Deadline for TDS Returns Filing
| Quarter | Quarter Period | Quarter Ending | Due Date |
| First Quarter | April – June | 30 June | 31 March 202X |
| Second Quarter | July-September | 30 September | 31 March 202X |
| Third Quarter | October – December | 31 December | 31 January 202X |
| Fourth Quarter | January – March | 31 March | 31 may 202X |
Tds Returns Forms
| S.No | Form Name | Description |
| 1 | TDS Return Form 24Q | Statement regarding tax deducted at source from salaries. |
| 2 | TDS Return Form 26Q | Statement for tax deducted at source on all payments except salaries. |
| 3 | TDS Return Form 27Q | Statement for tax deduction on income received from interest, dividends, or any other payment made to non-residents. |
| 4 | TDS Return Form 27EQ | Statement regarding the collection of tax at source. |
| 5 | TDS Return Form 27A | Form 27A serves as a control chart for deductors/collectors to accompany their quarterly TDS/TCS statements. |
Penalty for Income Tax Act for TDS Returns
Penalty for late filing of TDS returns is governed by two sections of the Income Tax Act – Section 234E and Section 271H.
Under Section 234E, the person responsible for deducting or collecting TDS/TCS must pay a fine of ₹ 200 per day for each day of delay until the TDS return is filed. This fine continues until it equals the amount of TDS that was supposed to be paid. For instance, if the TDS deducted is ₹ 5000 and the return is filed after 109 days of the due date, the late filing fee will be ₹ 5000.
Additionally, under Section 271H, the Assessing Officer can impose a minimum penalty of ₹ 10,000, which can go up to ₹ 1,00,000, for failure to file the TDS/TCS statement within the due date. This penalty is imposed on top of the late filing fee mentioned in Section 234E.
However, no penalty under Section 271H will be levied if certain conditions are met, such as timely payment of TDS to the government, payment of late filing fees and interest (if any), and filing the TDS/TCS return within one year from the specified due date. Non-compliance with TDS return filing can lead to substantial financial implications, making it crucial for deductors and collectors to meet the deadlines and fulfill their tax obligations promptly.
Conclusion
In short, TDS is making the process of tax collection and tax filing much easier and more transparent. You need to comply with the criteria, follow the rules for hassle-free tax filing, and clearly understand your rights and responsibilities.
FAQs
In which form TDS return should be filed?
TDS returns should be filed in Form 24Q, Form 26Q, or Form 27Q, depending on the type of deductee and nature of the income.
Why is the TDS return filed?
TDS returns are filed to report and remit the tax deducted at source by the deductors to the government. It helps in ensuring timely and accurate collection of taxes and enables the government to keep track of income earned and taxes deducted by various entities.
How to file TDS in e-filing?
To file TDS in e-filing, taxpayers can use the government's official website or designated e-filing portals, log in with their credentials, and navigate to the ‘TDS’ section. Then, they can select the appropriate form, fill in the required details, upload the TDS return in the specified format, and submit it electronically.
What is the TDS section and TDS provision for commission paid?
The TDS section for commission paid is Section 194H, and the TDS provision mandates deducting tax at a rate of 5% on commission payments exceeding ₹ 15,000 during a financial year
Why is the TDS return filed?
The TDS return is filed to report and remit the tax deducted at source by the deductors to the government. It helps in ensuring timely and accurate collection of taxes and enables the government to keep track of income earned and taxes deducted by various entities.
