Entities (both corporate and non-corporate deductors) making payments (specified under Income Tax Act) to third parties (deductees) are required to deduct tax at source (Tax Deducted at Source -TDS) from these payments and deposit the same at any of the designated branches of banks authorised to collect taxes on behalf of Government of India. They should also furnish TDS returns containing details of deductee(s) and challan details relating to deposit of tax to Income tax department.

As we all are aware that It is mandatory for corporate deductors and government deductors to furnish their TDS returns in electronic form (e-TDS return). Deductors (other than government and corporates) may file TDS return in electronic or physical form.

1. Time Limit to File Statement for quarter ending on 31.12.2019:

Due date of filing TDS return (Whether electronically or in physical form) for quarter ending 31st December, 2019 will be 31st January, 2020

2. How to file TDS Return?

  • First of all choose relevant Form applicable in your case (E.g. Form 24Q, Form 26Q, Form 27Q, etc.)
  • You must hold a valid TAN and it should be registered for e-filing
  • Your TDS statements should be prepared using Return Preparation Utility (RPU) and validated using File Validation Utility (FVU)
  • If you want to file return in physical form, then each e-TDS return saved in a CD/Pen Drive has to be submitted along with a signed copy of Form 27A to TIN-Facilitation Centres (TIN-FC) established by NSDL
  • You should have a valid DSC registered for e-filing if you wish to upload using DSC

3. How to upload TDS statements on income tax portal

  • Go to http://incometaxindiaefiling.gov.in/ and click on ‘Login Here’.
  • Enter your login credentials and click on ‘Login’. Your user ID will be your TAN.
  • Once you’ve logged in, click on the ‘Upload TDS’ option under the TDS tab
  • You will be provided with a form where you will need to select the correct details. Once the details are selected, click on Validate.
  • The returns can be validated through DSC or Digital Signature Certificate.
  • To upload using DSC, first upload the TDS zip file and also attach the digital signature file. Then, click on Upload.
  • Once the TDS statement is uploaded, a success message will appear on the screen and a confirmation mail will be sent to your registered email ID.

4. Download of TDS Certificates:

  • TDS certificate in Form 16A, containing 7 character TDS certificate number, has to be mandatorily downloaded from https://www.tdscpc.gov.in
  • TDS certificate cannot be downloaded from TRACES Portal in case of non/ incorrect quoting of PAN
  • Transaction based report (TBR) can be downloaded in case of non-residents who do not have PAN in India reported in Form 27Q
  • Delay in issue of IDS certificate shall result in penalty of Rs. 100/- for each day of default not exceeding the amount of tax deductible

5. Consequences of non filing of tds return or non deduction or non payment of tds:

In case you have not deposited TDS or not filed TDS return by the correct date, the following penalties are applicable:

i. Late filing fee (if you do not file by the deadline) [Section 243E]:

Deductor will be liable to pay the way of fee Rs.200 per day till the failure to pay TDS continues. However, the penalty should not exceed the amount of TDS for which statement was required to be filed.

ii. Interest (if you do not deposit the TDS amount in time)

Non deduction of tax at source, either in whole or in part – 1% per month from the date on which tax deductable to the date on which tax is actually deducted

Non payment of tax either in whole or in part – 1.5% per month from the date of deduction to the date of payment


1) The above interest should be paid before filing of TDS return.

2) Please note that the part of a month is considered as a full month at the time of calculation of interest.

6. Some Important Points need to keep in mind

  • All deductors must register themselves at https://www.tdscpc.gov.in (TRACES Portal).
  • Quote correctly their TAN and also PAN of the deductee so that they get their due tax credit.
  • Quote correctly CIN of the challan to avoid default for short payment.
  • Non-quoting of PAN or TAN in TDS statement may lead to levy of penalty.
  • Deductors may avoid defaults about PAN and challan errors in preliminary screening, by responding to email/SMS from CPC(TDS) within seven days of receipt of email/SMS.
  • TDS certificate downloaded from TRACES system is the only valid certificate.
  • Use PAN-TAN master facility at TRACES Portal to verify correctness of PAN of the deductee.
  • If there is no transaction liable to TDS/TCS to report for the quarter. do intimate the same at TRACES Portal using “Declaration for Non filing” functionality to avoid notice for non-filing of IDS statement.

(Republished with Amendments)

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One Comment

  1. Salim kalu says:

    My client has deposited cash RS.210,000 directly in my account against sales. Can i withdraw and return to him or what are the provision so that I can complete my transactions

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