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TDS Return Filing

File your TDS Return Online - An Overview

The concept of TDS was introduced to collect the taxes at the sources of income. According to this idea, a person (deductor) who is required to make a payment to another person (deductee) must withhold tax at source and remit it into the central government's account. On the basis of Form 26AS or a TDS certificate issued by the deductor, the deductee from whose income tax source deductions have been made is entitled to receive credit for the amount so deducted. Online TDS return is a statement given to the IT department on every quarter. It is essential for every deductor to deposit income tax and file for TDS return on time. Actolegal assists and guides you on online TDS return in 3 easy steps. The process is very easy and can be done with no delays. Just book an

TDS Return for Individuals and Businesses

An employer or company that has valid TAN - Tax Collection and Deduction Account Number can file for online TDS return. Any individual or business who makes a particular payment which is stated under the I-T Act needs to deduct tax at source. The deposit for the same has to be made within the stipulated time. The payment categories include:

  • Salary
  • Insurance commission
  • Income from winning horse races
  • Income by way of “Income on Securities”
  • Income by way of winning the lottery, puzzles, and others
  • Payment in respect of National Saving Scheme and many others

An assesses can submit an e-TDS return if the same was deducted from their income. As mentioned earlier, it is the obligation of the assessee to file within the due date or be liable to pay a penalty for delay. The categories of assesses eligible to electronically file TDS return every quarter are:

  • Company
  • Persons whose accounts are audited u/s44AB
  • Persons holding an office under the Government

Benefits of TDS Return Filing Online

As per the IT Act of 1961 filing TDS return is mandatory as well as it fetches some benefits to person or company. A few advantages of submitting a return and knowing the refund status are:

  • A steady inflow of income to the government.
  • Facilitates a smooth collection of taxes used for welfare.
  • No burden of paying tax lump sum as the payment is done every three months for the whole year

Fine for Late Filing of TDS/TCS Returns

Late filing charges or collected as per Section 234e. Each and every person who files a TDS after the due date is subject to a fine of ₹200 everyday until the TDS return is filed. Say, for instance, that you deducted TDS of ₹5000 on 13 May 2022, and that you file your first quarter's return on 17 November 2022, rather than the required 31 July 2022.

The delay is 109 days long, measured from 1 August 2022, to 17 November 2022.

The result of the calculation is ₹200 times 109 days, or ₹21,800. Since the total late fee amount is greater than the TDS amount of ₹5000 you will be required to pay ₹5000 as a late filing fee. You must also pay interest for any TDS deposit delays, which is described in the section below.

Penalty (Sec 271H)

The officer has the right to order a penalty with the defaulters. The assessing officer can demand up to ₹10000 as penalty if the TDS is not submitted within the deadline. There is a penalty under this section in addition to the late filing charge under Section 234E.

  • The government gets credited with the tax that was deducted or collected at the source
  • All the late payment charges or paid directly to the government credit
  • The TDS/TCS return is submitted before the end of the year following the deadline set forth in this regard.

How do we help in Filing TDS Return?

It is mandatory for every deductor to submit TDS return to the Income Tax Department of India in quarterly statements. Every detail of the returns has to be accurate and precise. Keeping up with the quarterly payments can be cumbersome and if not done on time, you may attract huge penalty.

The rate of TDS is set by the IT department based on expense recognized by them. Hence the prescribed rate of deduction varies. Keeping the threshold limit in mind while making payments can be tedious.

Once you choose us, our affiliates prepare the account and file TDS refund on your behalf. From the very first stage of preparing the returns till the last phase of the refund, we act as your consultants. Actolegal not only does all the paperwork for you, but also makes sure that every government interaction is smooth. Our process is truly transparent and always meets your expectations. We take care of:

  • Computing your TDS payments
  • e-filing the TDS return
  • Adherence to compliance with regulations

Things to remember before Filing TDS Return on time

For any person who has TDS reduction in their pay, TDS return can be filed online. Return preparation has to be done within the prescribed time frame because for individuals who are deemed as a regular defaulter in India, a grave penalty can be charged. Therefore submitting e-TDS Return in the prescribed time is essential.

For the deductor, it is vital to deposit the subtracted TDS to the concerned government department along with the details.

The time period within which the deductor should deposit the amount and the deductee has to file for TDS refund are given below. It is important to stick to the schedule to avoid incurring a penalty.

For online TDS return, every single person who has made the TDS deduction should file the TDS return without fail. The deductor should make the quarterly submissions at the Income Tax department. There are different types of forms available in accordance with the change in the intent of the TDS deductions made. The PAN details of both the deductees and the deductor should be added in the statement. The statement should also contain information about TDS challan and the tax details among other important details.

In online TDS return, the statement/ TDS return is defined as the summary of every transaction made in relation to the quarterly TDS payments. This statement should be submitted by the deductor to the department of income tax.

For all deductors, the submission of TDS return is mandatory. It contains the details of TDS deductions and deposits made by the deductor. It should also contain PAN card details of both deductees and deductor, tax paid particulars, information about TDS challan and any other extra information the form demands.

Filing Revised TDS Returns

In the case of online TDS return, if there are any errors committed due to incorrect challan details, incorrect PAN details or lack of PAN card details, the amount which is credited as the tax will not be reflected in the Form 16A/Form16/Form 26AS. In such cases a revised TDS return must be filed.

To file a revised TDS return, you need two files - consolidated file containing the details of the deductions made in the quarter; and the one is the justification report containing the information on the errors filed in the return.

The Period of Filing TDS Refund

While filing online TDS returns, if you pay in excess than the actual tax amount payable, you will be eligible to claim TDS refund. The time within which the refund is done depends on whether you have made the income tax return filing before or after the due date. In case the returns were filed on time, then you will receive the refund of the excess amount within 3-6 months.

In online TDS return, if there is a case of late filing or failure to file the returns, the individual or the company will have to face two types of penalties:

  • The late filing fee- U/s 2 and 234E
  • Non-filing penalty - U/s 271 H

Documents required to file TDS Return online

The following documents have to be submitted for filing the TDS returns.

  • TAN details
  • PAN details
  • Last TDS filing details, if applicable
  • The period for which TDS has to be filed
  • Date of incorporation of the business
  • No. of transactions for filing TDS returns
  • Name of the entity - Proprietorship/ Partnership/ Company/ LLP

FAQ about TDS-Return-Filing