5 Simple Steps to TDS Return Filing

Client provide TDS deducted sheet

Digital CA Check correctness of this sheet

Digital CA insert this data in TDS Return tools

Digital CA filed the TDS Return

Get Provisional Token Number Acknowledgment

Who is liable to deduct TDS

Any person making any specified payment as per various provisions of the income tax act is required to deduct TDS at the time of payment or credit of such payment.
No TDS is required to deduct If payment is paid by any individual or HUF whose account is not required to audit under income tax.

But in case of payment of Rent in excess of Rs 50000 TDS at the rate of 5% is required to deduct TDS by any person even by Individual or HUF whose accounts is not required to audit under Income Tax Act.

Rate of TDS is specified in various sections of the Income Tax Act as like 192B, 194A, 194B, 194C, etc.

Basic Documents

Basic information required

PAN card/Pan Number
Tax payment challans (Self-assessment, advance tax, if you have deposited the same
TDS Deduction Sheet with all deductee details as like PAN, Name, Date of Payment, Amount Credited, etc.
All Bank account information

Late for TDS Return filing:

According to Section234E, if an assessee fails to file his/her TDS Return before the due date, a penalty of Rs 200 per day shall be paid by the assessee until the time the default continues. However, the total penalty should not exceed the TDS amount.

Due date of TDS Payment

For TDS deducted in Apri to February: 7the Day of Next Month of deduction of month
For TDS deducted in March: 30th April

Non Filing of TDS Return:

If an assessee has not filed the return within 1 year from the due date of filing return or if a person has furnished incorrect information, he/she shall also be liable for the penalty. The penalty levied should not be less than Rs 10,000 and not more than Rs 1,00,000.

1499

Basic

All Inclusive Fees

For 15 entries one quarter

2499

Silver

All Inclusive Fees

For 25 entries One quarter

4999

Gold

All Inclusive Fees

For More than 25 Entries

Basic Features

Kind of Advance Tax

TDS is one kind of advance tax. It is the tax that is to be deposited with the government periodically and the onus of the doing the same on time lies with the Deductors. For the Deductee, the deducted TDS can be claimed in the form of a tax refund after they file their ITR.

Assistances to Govt

The government requires funds throughout the year. Hence, advance tax and tax deducted at source help the government to get funds throughout the year and run the government smoothly.

Evasion of TAX

It prevents people from evading of taxes because TDS is deducted at the time of payment or credit. Deductor is liable to deduct TDS at the time of payment of specified natures of payment as per income tax as like payment made to Transporters, Professionals, Interest, Royalty, etc.

TDS Certificates

Deductors is required to issue a TDS certificate called form 16 for salaried employees and form 16A for non-salaried employees within a specified time. Deductors has to issue TDS Certificates within two months of the next financial year.

Avoid burden of Taxes

To enable the salaried people to pay the tax as they earn every month. This helps the salaried persons in paying the tax in easy installments and avoids the burden of a lump sum payment.

Quarterly Statement

Every person deducting taxes is obligatory to prepare a quarterly statement to full fill the compliance under Income tax on or before the due date specified in the Income Tax Act.