Asktrix

Guide to TDS Return Filing

Tax Deducted at Source (TDS) is a critical tax mechanism in India that ensures tax collection at the source of income. Understanding TDS return filing is essential for businesses and individuals to maintain compliance and avoid penalties. Asktrix provides comprehensive TDS filing services to ensure seamless compliance.

Governing Acts and Rules

TDS is governed by various acts and regulations:

  • Income Tax Act, 1961: Primary legislation governing TDS provisions
  • Income Tax Rules, 1962: subordination rules for TDS implementation
  • CBDT Notifications: Regular updates and amendments to TDS rates and procedures
  • Finance Acts: Annual amendments to TDS provisions

Types of TDS Returns and Applicability

TDS returns are filed using different forms based on the nature of payments:

Form Applicable Deductor Purpose Examples of Deduction
Form 24Q Employers deducting from salaries Salary TDS Monthly salary payments to employees
Form 26Q Non-employer deducting Non-salary TDS Professional fees, rent, interest, commission
Form 27Q Non-resident payments Foreign payments Payments to non-resident individuals/companies
Form 27EQ TDS collectors TCS reporting Tax collected at source for specified goods

Step-by-Step Process for TDS Return Filing

Our streamlined process ensures quick and hassle-free TDS return filing:

1

Gather Required Documents

Collect all TDS-related documents including PAN cards of deductees, payment vouchers, TDS certificates received, and challans for tax deposited.

2

Use TDS Software or Utility

Download and install the latest TDS software from the Income Tax Department website for preparing and validating returns.

3

Fill the Relevant TDS Form

Choose the appropriate form (24Q, 26Q, 27Q, or 27EQ) and enter all required details including deductee particulars and payment information.

4

Validate and Generate Form

Use the validation feature to check for errors and generate the validated form ready for upload to the Income Tax portal.

5

Submit TDS Return

Upload the generated TDS return file on the Income Tax e-filing portal using digital signature or EVC authentication.

6

Generate TDS Certificates

After successful filing, generate Form 16/16A TDS certificates for all deductees and provide them within prescribed timelines.

Due Dates for Filing TDS Returns

TDS returns must be filed quarterly within prescribed deadlines:

Quarter Period Due Date
Q1 April - June July 31
Q2 July - September October 31
Q3 October - December January 31
Q4 January - March May 31

Benefits of Timely TDS Filing

  • Avoid Penalties: Prevents late filing fees and interest charges
  • Better Compliance: Maintains good standing with tax authorities
  • Deductee Satisfaction: Enables timely TDS credit for recipients
  • Business Credibility: Demonstrates professional tax management
  • Smooth Audits: Reduces scrutiny and audit risks

Common TDS Sections and Rates

Important TDS sections applicable to various payments:

Section Nature of Payment TDS Rate
192 Salary As per tax slabs
194A Interest (other than securities) 10%
194C Contract payments 1% (individual/HUF) / 2% (company)
194H Commission/brokerage 5%
194I Rent (land/building/machinery) 10%
194J Professional services 10%
194LA Payment for acquisition of immovable property 10%
194M Contractor/sub-contractor payments 5%
194N Cash withdrawal 2% / 5%
194O E-commerce operators 1%
194P TDS for senior citizens As per tax slabs
194Q Purchase of goods 0.1%
194R Benefits/perquisites 10%
194S Payment on transfer of virtual digital asset 1%
206AB Higher TDS for non-filers 5% or twice
206CCA Higher TCS for non-filers Double the normal rate

Penalties and Consequences for Non-Compliance

  • Late Filing Fee: ₹200 per day for delayed filing (up to TDS amount)
  • Interest on Delayed Payment: 1.5% per month on delayed TDS payment
  • Penalty for Incorrect Returns: ₹10,000 per incorrect return
  • Prosecution: Possible imprisonment for willful failures
  • Deductee Issues: Recipients face TDS credit problems

Example of TDS Calculation and Filing

Consider a company paying professional fees:

  • Amount Paid: ₹50,000 to consultant
  • TDS Rate: 10% under Section 194J
  • TDS Deducted: ₹5,000
  • Net Payment: ₹45,000
  • Form 26AS: Deductee can claim ₹5,000 credit
  • TDS Certificate: Form 16A issued within 15 days

Asktrix's Expert TDS Filing Services

  • Accurate TDS Management: Expert handling of all TDS-related activities
  • Timely Reminders: Proactive notifications for due dates
  • Quality Assurance: Thorough validation before filing
  • Compliance Support: Ongoing assistance for TDS compliance
  • Deductee Coordination: Smooth TDS certificate management
  • Regulatory Updates: Stay updated with latest TDS provisions
FAQ

Frequently Asked Questions

Find answers to common questions about TDS return filing, eligibility, documents, process, benefits, costs, and timelines.

What is TDS?

Tax Deducted at Source (TDS) is a tax collection mechanism where tax is deducted at the source of income generation and paid to the government by the payer on behalf of the payee.

Who is responsible for deducting TDS?

Any person making specified payments above prescribed threshold limits is responsible for deducting TDS, including employers, companies, partnerships, and individuals.

What is TAN?

TAN (Tax Deduction Account Number) is a 10-digit alphanumeric number required for deducting TDS. It is mandatory for entities deducting TDS.

What forms are used for TDS returns?

Common TDS return forms include Form 24Q (salary), Form 26Q (non-salary), Form 27Q (non-resident), and Form 27EQ (TCS).

When are TDS returns due?

TDS returns are due quarterly: Q1 by July 31, Q2 by October 31, Q3 by January 31, and Q4 by May 31.

What happens if TDS return is filed late?

Late filing attracts a penalty of ₹200 per day until the return is filed, subject to a maximum of the TDS amount itself.

How does Asktrix assist with TDS?

Asktrix provides comprehensive TDS filing services including accurate calculations, timely filing, TDS certificate generation, and ongoing compliance support.

Can TDS returns be revised?

Yes, TDS returns can be revised under certain circumstances to correct errors or omissions, usually before the due date for filing original return.

What documents are required for TDS filing?

Required documents include PAN details of deductees, payment vouchers, bank challans, TDS certificates, and authorized signatory details.

How are TDS certificates generated?

TDS certificates (Form 16/16A) are generated from TRACES after successful filing of TDS returns and must be provided to deductees within 15 days.

Professional TDS filing with Asktrix ensures smooth tax compliance and eliminates penalties. Our expert team handles all aspects of TDS management with accuracy and timeliness.

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