TDS RETURN FILING
TDS Return Filing- Tax Deducted at Source (TDS) is one of the sources of collecting tax by our Government. It is being deducted at the time of making payment by the deductor to the deductee. It can be said that it is one of the forms of advance tax, you pay the tax now and avail deduction form tax while computing your tax liability at the end of the financial year. Deductor is required to deduct it at the time of making any payment and then the same shall be deposited by him in the account of the Income Tax Department. Hence, it can be said that it is one of the methods of reducing tax evasion.
BENEFITS OF TDS
- One of the forms of revenue for Government
- It decreases the burden of payment of tax in lumb-sum,
- Regular collection
- Made payment of tax easier
DUTY OF PERSON TO DEDUCT TAX
Section 200 of the Income Tax Act 1961 provides for the person who is required to deduct tax under the Act while making. Person deducting TDS shall after collection pay to the government with in stipulated time as required. Below is the table showing the time lines under which tax shall be payable:
|Different situations||Or Time limit for deposit of Tax|
|When payer is the Government or when payment is made on behalf of Government||TDS is deposited without Challan||Same day|
|TDS is deposited with Challan||On or before Seven (7)days from the end of the month under which:
a) the deduction is made
b) income tax is due u/s 192(1A)
|When tax is deducted by the person other than the Government|
|Where the earning or an amount is credited in the month of March||On or before 30th April.|
|In any other case||On or before Seven (7)days from the end of the month under which:
a) the deduction is made
b) income tax is due u/s 192(1A)
It is pertinent to note that the Taxpayer shall after deposition of tax shall also file TDS return within such time as may be required under the Act. TDS return shall be submitted quarterly with the Income Tax department, Following are the details which are mandatorily required to be mention.
- PAN No. of both ie., deductor as well as deductee
- Tax to be paid to the Government
- Information about TDS challan
DUE TIME LIMIT FOR QUARTERLY RETURN OF TDS
The Quarterly return of TDS shall be filled by the person on or before the following due dates:
|Date of ending of the relevant Quarter of the FY||Due date for TDS for all Assessee|
|30th June||31st July of financial year|
|30th September||31st October of financial year|
|31st December||31st May of the financial year|
|31st March||31st May of the FY following the FY to which deduction was made|
SECTION 203: TIME LIMIT FOR ISSUE OF TDS
The TDS Certificate should be furnished by following due date:
|Particulars||TDS on salary||TDS on Non-salary|
|FORM||Form 16||Form 16A|
|Due date up to which TDS certificate shall be issued||31st May of the following relevant financial year||15 days from the due date of furnished of TDS return i.e 30th July,30th October, 30th January and 30th May|
TDS RETURN FORMS
|TDS on salary||The same is relate to FORM 24(Q)|
|TDS if deductee is a NR or any foreign company||The same is relate to FORM 27(Q)|
|TDS deducted on payment for transfer on immovable property||FORM 26QB|
|TDS in any other case||FORM 26Q|
TDS RETURN SUBMISSION
Below are the Assessees for which it is mandatory to file TDS return and in case the same is not filed then the penalty as required under the Act shall be submitted:
- Assessee account of who’s required to be Audited in accordance with Section 44AB of the Income Tax Act 1961.
- Assessee having any under the Government
- Any Company incorporated under the Companies Act
SECTION 201: CONSEQUENCES OF FAILURE TO DEDUCT OR PAY TDS
It is to be noted that if the Assessee has defaulted in deducting of tax part or whole or in case if he has made any default in payment of Tax to the Government then he shall be liable to the payment of penalty and interest under section 220 and 221 of the Income Tax Act 1961.
DELAY IN FILING OF TDS RETURN- SECTION234E OF THE INCOME TAX ACT 1961
It is to be noted that if the Assessee has made any default in filing of TDS Return by the due date as provided under the Act, he shall liable for a penalty of Rs. 200 per day until the time of payment of tax by him, however the penalty is upto the amount of TDS required to be submitted with government.
NON-FILING OF TDS RETURN
If the Assessee made any default in filing of return within one year from the due date when it should have been filed, or in case if he has furnished fake information in the return then in such cases, he shall be liable to pay a minimum amount of 10,000/- as a penalty which shall can be increase to Rs 1,00,000/- and not more than that.
REVISED TDS RETURN
It is to be noted that you must ensure that you should submit proper return with correct details as if any information provided under the return is not correct then the same will not reflect in the Form16/ Form 26AS/ Form 16A.
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