All about TDS returns

Mansi Goel

As we all are aware that the revised due date for filing of TDS return for 4^th quarter is coming closer i.e. 30^th June, 2020. Hence this article is kind of reminder for all taxpayers to be compliant this time towards filing of return within due date to avoid unnecessary interest and late fees. This article covers the all details of TDS return such as Forms applicable, Type of assesses alongwith procedure for online filing of return and Penalty details for defaults.

I. Brief about TDS return forms:

Type of Assesses:

Compulsion of filing TDS return electronically is applicable on the following class of assesses:-

1. All corporate Deductors as well as Collectors
2. All govt. Deductors as well as Collectors
3. Where deductor / collector is required to get their accounts audited u/s 44AB of Income Tax Act , 1961 in the immediately preceding financial year.
4. Where the no of deductees/ collectees record in a quarterly statement for one quarter of the immediately preceding FY is equal to or greater than 20.

All other Assesses other than mentioned above can furnish their TDS return either in physical format or electronic format.

II. Points to be remembered while making Payment of TDS/TCS in Bank verification

1. Challan no. 281 should be used for depositing TDS/TCS
2. An accurate 10-digit TAN (Tax deduction account number) along with the name and address of the deductor / collector should be quoted on each challan separately. TAN details can also be verified from IT Department website.
3. For the following assesses online payment of TDS/TCS is mandatory with effect from 1.4.2008.

• • All corporate assesses
  • All other assesses who are required to get their accounts audited u/s 44AB.

III. 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

IV. 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.

V. Points to be remembered while filing your e-TDS Return:

1. The quarterly statement should be accompanied by a filled and signed (by any signatory authority) verification Form 27A in physical form.
2. Each return should be in CD/Floppy . it should be scattered over multiple floppies.
3. Return should be compressed only by using Winzip 8.1 or Ziptfast 3.0 compression utility to ensure easy and smooth acceptance of file.
4. Label indicating TAN, name of deductor/ collector , period to which return relates along with the form no is attached on each CD for the purpose of easy identification.
5. There should not be any overwriting in Form 27A. if there is any it should be rectified by any authorized signatory.
6. All deductors must register themselves at https://www.tdscpc.gov.in (TRACES Portal).
7. Quote correctly PAN of the daductee so that they get their due tax credit.
8. Quote correctly CIN of the Challan to avoid any short payment default.
9. Non-quoting of PAN or TAN in TDS statement may lead to levy of penalty,
10. TDS certificate downloaded from TRACES system is the only valid certificate.
11. 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 TDS statement.

VI. Penalty for late filing or Non-Filing of TDS return:

Late filing of TDS return:

As per Section 234E, in case an assesse fails to file his TDS/TCS return before the due date, he shall be liable to pay a penalty of RS. 200 per day till the time the default continues. But however the total penalty computed should not exceed the total amount of tax deducted.

Non- filing of TDS return:

If any assesse is required to furnish his TDS/TCS return and due to any reason he fails to submit that same within 1 year from the due date of filing of return or if incorrect return has been filed, penalty levied in this case will be minimum Rs.10,000 but not more than Rs.1,00,000.

(Republished with Amendments by Team Taxguru)