TDS Return

Filing a TDS (Tax Deducted at Source) return is to report the details of tax deducted at source from various payments made during the year. This includes salary, interest, rent, commission etc. where TDS is applicable. Filing TDS returns ensures compliance with tax rules and provides a record of taxes deducted and deposited with the government on behalf of the taxpayer. It also helps in matching the TDS amount deducted and paid with the Income Tax Department records, thereby avoiding any discrepancies or penalties.

Key Components of TDS Return

  • Deductor and Deductee Information:
    – TAN (Tax Deduction and Collection Account Number) of the deductor.
    – PAN (Permanent Account Number) of both the deductor and the deductee.
    – Name and address of the deductor and the deductee.
  • Details of TDS Deducted:
    – Nature of payment on which TDS is deducted (e.g., salary, rent, interest, etc.)
    – Amount of TDS deducted.
  • Challan Details:
    – Details of the challan (payment slip) used to deposit the TDS to the government. This includes the challan serial number, date of deposit, and amount deposited.
  • Types of TDS Returns
    – Form 24Q: This form is used to report TDS deducted on salaries paid to employees. Employers are required to file Form 24Q quarterly, by the 15th of the month following the quarter.
    – Form 26Q: This form is used to report TDS deducted on all payments other than salaries. This includes payments made to contractors, consultants, freelancers, and vendors. Form 26Q is also filed quarterly, by the 15th of the month following the quarter.
    – Form 27Q: This form is used to report TDS deducted on interest, dividends, or any other sum payable to non-residents. Form 27Q is also filed quarterly, by the 14th of the month following the quarter.
    – Form 27EQ: This form is used to report tax collected at source (TCS) on sale of bullion or jewelry. TCS is similar to TDS, but it is collected at the time of sale rather than at the time of payment. Form 27EQ is filed quarterly, by the 14th of the month following the quarter.

Required Documents and Information for Filling TDS Return

  • Document
    – TAN (Tax Deduction and Collection Account Number)
    – PAN (Permanent Account Number)
    – TDS Payment Challan Details
  • Return Specific Information:
    – Form Selection
    – Form 24Q: For TDS on salary payments.
    – Form 26Q: For TDS on non-salary payments (rent, interest, etc.)
  • Transaction Details
    – Name of the deductee (payee)
    – Date of payment
    – Section under which TDS was deducted (e.g., section 192 for salary)
    – Rate of tax deduction
    – TDS amount deducted

Step by Step TDS Return Filing Process

  • Collect Information: You’ll need your TAN (Tax Deduction and Collection Account Number) details, PAN (Permanent Account Number) details, previous TDS filing details (if any), details of the period for which you’re filing TDS, date of business incorporation, and the number of transactions for TDS return filing.
  • Access the Income Tax Department Website: Visit the Income Tax Department’s e-filing website.
  • Log In: Use your PAN and password to log in to the portal.
  • Navigate to TDS Return Section: Click on the ‘e-File’ tab and choose ‘Prepare and Submit TDS Return.
  • Select Return Details: Select the relevant financial year and form type (e.g., Form 26Q for Salary TDS, Form 24Q for non-salary TDS).
  • Enter Details: Fill in all required details, including TDS amount, deductee’s PAN, and tax deducted at source.
  • Review and Submit: Carefully review all the information you’ve entered. Once everything is correct, click ‘Submit’ to file the TDS return.
  • Save Acknowledgement: Save or print the acknowledgment receipt for future reference.
Scroll to Top