Filing of TDS Returns

TDS (Tax Deducted at Source) returns are mandatory for taxpayers who are responsible for deducting tax at source on certain payments made to residents. These payments could include salaries, professional fees, interest, rent, etc. TDS returns provide the details of the taxes deducted by the deductor and the remittance made to the government.

Steps to File TDS Returns

1. Determine the Due Dates

• Quarterly Filing:TDS returns are filed on a quarterly basis. The due dates for filing the returns are as follows
• 1st Quarter (April - June): 31st July
• 2nd Quarter (July - September): 31st October
• 3rd Quarter (October - December): 31st January
• 4th Quarter (January - March): 31st May

Note: If the last date of filing falls on a public holiday, the due date is extended to the next working day.

2. Prepare the Required Information

• TDS challan details (amount of tax deducted and deposited).
• PAN details of the deductee.
• Breakup of payments and taxes deducted for each deductee (Form 16A can be used as a reference for this).
• Any corrections or modifications if applicable from previous filings.

3. File the TDS Return Online

Use the appropriate form for filing the TDS return online:

• Form 24Q: Used for TDS on Salary.
• Form 26Q: Used for TDS on payments other than salary (e.g., contractors, professional fees, etc.).
• Form 27Q: Used for TDS on payments to non-residents.
• Form 27EQ: Used for filing the statement for tax deducted on the sale of property.

4. Login to the TRACES Portal

Go to the official TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal: https://www.tdscpc.gov.in.

Register or log in with your credentials and click on the “TDS Return” option.

5. Fill Out the Form

After logging in, select the relevant quarter and financial year for which the return is being filed. Then, enter the following details:

• Details of TDS deductions and payments.
• If required, correct or modify the previously filed TDS return.

6. Validate the Data

After entering all the details, validate the return using the "Validate" button. This will check for any errors or missing details.

7. Generate the File

Once the return is validated, you will be prompted to generate the TDS return file in the prescribed format (usually .xml). Download the generated file.

8. Submit the Return

Upload the .xml file generated through the online portal. After successful submission, you will receive an acknowledgment receipt with a token number (or receipt number).

9. Issue Form 16/16A to Deductees

After successfully filing the return, issue Form 16 (for salaried employees) or Form 16A (for non-salaried payments) to all deductees who had tax deducted at source. This serves as proof of tax deducted and deposited.

Important Points to Note

1. Late Filing Penalty

If TDS returns are not filed by the due date, a penalty of Rs. 200 per day will be levied under Section 234E. Additionally, interest will be charged for late deposit of TDS.

2. Consequence of Non-Filing

Non-filing of TDS returns could lead to the suspension of TAN (Tax Deduction Account Number), and the deductor may not be able to file future returns.