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TDS Return Filing And Compliances

TDS Return Filing And Compliances

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) is one of the essential concepts of the Income Tax Act 1961. Every registered assessee who is liable to deduct TDS or TCS shall collect/deduct tax and the same will be deposited within the prescribed time limit as per the Government. TDS is required to be deducted at source on certain payments, such as salaried, interest, payments to contractors and insurance commission,purchase of property etc.

It is a tool by which Government establishes the various check over the income to ensure the avoidance of tax evasion and also collect some part of income tax revenue on monthly basis which helps it to smooth running of Government machinery.

TDS returns are prepared in form No. 24Q, 26Q ,26 QB or 27Q as per Income Tax Act. In case of any delay in the deposit of TDS or filing the quarterly TDS return beyond the due date then the Interest & penalties are payable as applicable. If the deductor do not deduct the TDS then he will not be entitled to claim the related expenses / payment as the admissible expenses while computing his net taxable income.

Once you choose our firm, 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. Meru & Associates 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

FREQUENTLY ASKED QUESTIONS

Q.1. What is TDS Return Filing?

TDS (Tax Deducted at Source) return filing is the process through which businesses and individuals submit details of tax deductions made from payments like salaries, interest, contract payments, etc., to the Income Tax Department.

Key points:

  • Quarterly Filing: TDS returns are typically filed on a quarterly basis.
  • Form 24Q: For salaried employees, Form 24Q is used to report TDS on salaries.
  • Form 26Q: For other payments, such as contract work, Form 26Q is used.
  • Form 27Q: For non-resident payments, Form 27Q is used.

Any person or entity who is responsible for deducting TDS at source, such as employers, contractors, or financial institutions, must file TDS returns.

Key points:

  • Employers: Must file TDS returns for salaries paid to employees.
  • Businesses: Must file returns for payments made to contractors, professionals, or vendors.
  • Financial Institutions: Must file returns for interest payments made to depositors.
  • Non-Residents: If payments are made to foreign entities, the payer must file TDS returns using Form 27Q.

  • TDS returns must be filed quarterly, with specific deadlines set by the Income Tax Department.

    Key points:

    • 1st Quarter (April to June): Due by 31st July.
    • 2nd Quarter (July to September): Due by 31st October.
    • 3rd Quarter (October to December): Due by 31st January.
    • 4th Quarter (January to March): Due by 31st May.
    • Delays in filing can lead to penalties, interest, and scrutiny from tax authorities.

Failure to file TDS returns on time can result in penalties, interest, and legal consequences.

Key points:

  • Late Filing Fees: A fee of ₹200 per day is charged for delayed filing.
  • Interest: Interest on late payment of TDS is levied at 1.5% per month from the due date.
  • Penalty for Incorrect Filing: Penalties can range from ₹10,000 to ₹1,00,000 for incorrect or false filings.
  • Tax Deduction Defaults: Failure to deduct tax at source could attract a penalty of 100% to 300% of the tax due.

A CA plays a crucial role in ensuring that your TDS returns are filed correctly, timely, and in compliance with the latest laws.

Key points:

  • Accurate Filing: CAs ensure correct calculation and timely filing of TDS returns.
  • Avoiding Penalties: By adhering to deadlines and proper filing procedures, a CA helps avoid penalties and interest.
  • Tax Planning: CAs help businesses optimize tax deductions and ensure the right amount of TDS is deducted.
  • Resolving Notices: CAs assist in resolving any notices or discrepancies from the Income Tax Department related to TDS filings.