What is TDS Return?

TDS is an abbreviation for tax deducted at source. The Income Tax Act requires any corporation or individual making a payment to deduct tax at source if the payment exceeds specific threshold limits. TDS must be deducted at the tax department’s rates, and TDS returns must be filed on the relevant TDS Return Forms.

Important notes:

• Any individual who is obligated to deduct tax at source must file a TDS Return.
• It is a quarterly statement that must be submitted to India’s Income Tax Department.
• If you are a deductor, you must file a TDS return.
• It should include all TDS deducted and deposited by you for a specific quarter.

Pre-requisites of TDS Return Filing

• To file a TDS Return, you must first obtain a valid TAN (Tax Deduction Account Number) and PAN (Permanent Account Number). You must determine whether you are obligated to deduct TDS on particular payments.
• Transaction and payment information
• Generally, due payments include all forms of payments such as salaries, interest, professional fees, payments to contractors, rent of machinery, rent of a building, and so forth.
• The Income Tax Act of 1961 specifies the rates for each sort of TDS payment.

Types TDS return forms:

TDS return Form 24Q: Statement for tax deducted from salaries at the source.

TDS return Form 26Q: Tax deducted at source statement for all payments other than salary.

TDS return Form 27Q:Tax deduction statement for income received from interest, dividends, or any other payment due to non-residents.

TDS return Form 27EQ:Tax collection at source statement.

TDS Return for individuals and businesses

An employer or business with a valid TAN – Tax Collection and Deduction Account Number – can file an online TDS return. Any individual or corporation who makes a specific payment as defined by the I-T Act is required to deduct tax at the point of sale. The deposit must be made within the time frame specified. Among the payment options are:

• Salary
• Insurance commission
• Income from winning horse races
• Income by way of “Income on Securities”
• Income by way of winning the lottery, puzzles, and others
• Payment in respect of National Saving Scheme and many others

If TDS was deducted from their income, an assessee can file an e-TDS return. As previously stated, it is the assessee’s responsibility to file by the due date or face a penalty for late filing. Every quarter, the following assesses are eligible to file TDS returns electronically:

• Company
• Persons whose accounts are audited u/s44AB
• Persons holding an office under the Government

Benefits of TDS Return Filing Online

According to the Income Tax Act of 1961, filing TDS returns is required and provides several benefits to the individual or organization. The following are some of the benefits of submitting a return and knowing the status of your refund:

• A consistent supply of revenue to the government.
• Allows for the smooth collection of welfare taxes.
• There is no need to pay a large sum of tax because payments are made every three months throughout the year.

Documents required to file TDS Return online

The following documents must be presented in order to file TDS returns.

•  TAN details
•  PAN details
•  Last TDS filing details, if applicable
•  The period for which TDS has to be filed
•  Date of incorporation of the business
•  No. of transactions for filing TDS returns
•  Name of the entity – Proprietorship/ Partnership/ Company/ LLP