In what way does TDS return filing work?
Tax deductors are also required to file TDS returns in addition to depositing taxes. Quarterly TDS returns must be filed with the Income Tax Department. It is important that the TDS returns are filed on time. The filing of TDS returns can be done entirely online. Form 26 AS will display details after TDS returns are submitted. In filing TDS return, the following details need to be provided:
- PAN of the deductor and the deductee.
- Amount of tax that is paid to the government
- TDS challan information
- Others, if any.
TDS – what is it?
During a transaction, the Government of India collects tax deducted at source, or TDS. A tax is to be deducted from the payment or the credit to the payee’s account, whichever occurs first.
In In the case of salary payments or life insurance policies, the tax is deducted at the time of payment. A deposit is required by the Income Tax Department from the deductor. Through TDS, part of the tax is paid directly to the Income Tax Department. In most cases, tax is deducted in the range of 10%.
What is TAN?
The Tax Deduction and Collection Number or TAN is a mandatory 10-digit alphanumeric number that must be obtained by anyone responsible for deducting or collecting tax at source for the federal government. TANs are not required for salaried individuals, nor are they required to deduct tax from their paychecks.
In Whenever a proprietorship, business or other entity pays salary, make payments to the contractor, pay rent that exceeds Rs.2,40,000 per year, they are required to deduct tax at source. It is possible to obtain TAN registrations through IndiaFilings.
TDS returns must be filed quarterly by entities with TAN registrations. Completing TDS payments and filing TDS returns in accordance with TDS regulations can be handled by our TDS experts.
Eligibility Criteria
Who can file TDS returns?
A valid tax collection and deduction number (TAN) is required for filing a TDS return. In order to meet the Income Tax Act requirements, any person making specified payments is required to deduct the tax at the source and deposit it within a specified period.
- Salary Payment
- Income on securities
- Income by winning the lotteries, puzzles, and others.
- Income from winning horseraces
- Insurance commissions.
- Payment concerning the National saving scheme and many others.
What is a TDS Certificate?
Once the TDS has been deducted by the deductor, a TDS Certificate must be provided. By viewing TRACES’s TDS certificates with 7 digit unique numbers and TRACES watermarks, the deductee can confirm the tax credit.
Deductees are required to keep their TDS certificates. Payment certificates other than salary are issued quarterly, and salary certificates are provided annually.
In It is possible for the deductee to get a duplicate TDS certificate if he or she loses possession of the certificate.
Penalty for failure in filing the TDS returns
If In case the assessee fails to file the TDS returns before the due date, there will be a penalty of Rs.200 per day under Section 234 E.
Non Filing the TDS returns
If The assessee will also be liable for a penalty if he or she fails to file the return within a year from the date of filing, or if the person furnishes incorrect information. Penalties of not less than 10,000 rupees and more than 100,000 rupees may be imposed.
Revised TDS Returns
As soon as the TDS return is submitted and errors are detected, such as incorrect challan details, missing PANs, or incorrect PANS, the government will not credit the amount on the Form 16A / Form 26AS. An amended TDS return must be filed to ensure that the amount is properly credited and reflected in Form 16/Form 16A/Form 26AS.
Prerequisites for submission of Revised TDS returns
Only after the original TDS return has been accepted by the TIN central system can the revised return be filed. The assessee can check the status of the TIN Central System. The assessee can check the status of the TDS returns that are filed online by providing the required details such as the PAN and the Provisional Receipt Number/ Token number on NSDL.
It is only possible to file revised TDS returns once the original TDS return has beenolidated TDS statement. The certificate can be downloaded from the TRACES website.
Claiming TDS return
TIN accepts the revised TDS returns only when the original TDS return has been accepted.s of the TDS in his returns of income. The deductee is required to take due care to quote the correct TDS certificate number and the TDS details while filing the returns of income.
When the original TDS return is accepted by TIN central system, revised TDS returns can be filed.it of processing the TDS returns.