TDS Return Filing
What is TDS return filing?
TDS return filing is a tax statement that has to be submitted to the Income Tax Department every quarter. TDS return filing can be done completely online. The details of your TDS return filing, once submitted come up on Form 26 AS. Following details need to be mentioned when filing your TDS tax return:
What is TDS?
TDS or Tax Deducted at Source, as the name suggests is the tax payable to the Government of India when a transaction between 2 parties takes place. Tax has to be deducted before payment is made to the creditor, i.e tax should have been deducted before money is credited in the account of the creditor.
The deductor must then deposit this deducted amount to the Income Tax Department. Tax has to be deducted for any transaction, including but not limited to salary payment or even life insurance policy. The amount of tax to be deducted depends on two things: 1. The amount of money being transferred (since a percentage of the total amount is to be deducted) 2. Reason for payment (amount of percentage to be deducted depends on why payment is being made).
TDS Returns must be filed accurately every quarter to avoid any penalties from the government. Our TDS experts are up to date with all TDS regulations and can accurately compute TDS payments and file TDS returns.
What is TAN?
TAN or Tax Deduction Account Number/ Tax Collection Account Number is a 10 digit alpha numeric number that every single party responsible for deducting TDS or tax at source must obtain. Individuals who only make personal transactions are not required to obtain TAN or deduct the tax at the source.
All forms of businesses, from sole proprietorship to Private Limited companies must deduct tax at source while making payments like salary, payments to the contractor, payment of rent, payment of commissions etc. that is exceeding Rs.2,40,000 per year. Suresh Dawar and Co. can help in obtaining the TAN registrations.
If you are making payments to any parties for your business, then you must register and obtain your own TAN. Experts at Suresh Dawar and Co. can help you obtain your TAN without any hassle.
TDS return Penalties
If a party fails to file TDS returns before the due date for that period then the penalty charged to that party is calculated as per Section 234E which says that a sum of Rs. 200 per day for every single day defaulted must be paid to the government.
If a party fails to provide accurate information or deliberately provides incorrect information while filing TDS return then the penalty charged to that party is calculated as per Section 271H which is a penalty of minimum Rs. 10,000 but not exceeding Rs. 1,00,000
Claiming TDS Credit
All parties whose payment has been deducted as per TDS guidelines (excluding penalty charges) can claim TDS Credit. To claim this TDS Credit, the party must mention the details of such transactions in the annual income tax return. The party must provide details such as TDS certificate number and any other TDS details accurately while filing their income tax return in order to claim their TDS credit without any hassle.
Incorrect details will lead to discrepancies in obtaining your TDS Credit.
Documents Required For TDS Return Filing
TDS Acknowledgement
PAN Card
TDS Certificate
Tax Payment Challan
Bank Statement