TDS Filling

Filing TDS (Tax Deducted at Source) returns is a crucial aspect of tax compliance for entities that are required to deduct tax at source from payments made to contractors, employees, professionals, etc. Here’s a guide to TDS filing in India:

1. Types of TDS Returns:

• Form 24Q: For TDS on salaries.
• Form 26Q: For TDS on payments other than salaries (e.g., rent, professional fees, interest, etc.).
• Form 27Q: For TDS on payments made to non-resident Indians (NRIs) and foreign entities.
• Form 27EQ: For TCS (Tax Collected at Source) returns.

2. Due Dates for TDS Returns:

• Form 24Q (Salary TDS):
  • Q1 (April to June): 31st July of the financial year.
  • Q2 (July to September): 31st October of the financial year.
  • Q3 (October to December): 31st January of the financial year.
  • Q4 (January to March): 31st May of the next financial year.
• Form 26Q and 27Q (Non-Salary TDS):
  • Q1 (April to June): 31st July of the financial year.
  • Q2 (July to September): 31st October of the financial year.
  • Q3 (October to December): 31st January of the financial year.
  • Q4 (January to March): 31st May of the next financial year.

3. TDS Filing Process:

a. Preparation:

• Collect TDS certificates (Form 16A for non-salary TDS, Form 16 for salary TDS) from deductees.
• Ensure correct and complete details of deductees, deductions, and tax deposits..

4. Penalties for Late Filing or Non-Compliance:

• Late filing may attract penalties and interest under Section 234E and Section 271H of the Income Tax Act, 1961.
• Non-compliance with TDS provisions can lead to disallowance of expenses, penalties, and legal repercussions.

5. Annual TDS Return:

• Form 26AS: Verify Form 26AS to ensure all TDS entries are reflecting correctly against your PAN.
• Form 16/16A: Issue Form 16 (salary) and Form 16A (non-salary) to deductees after filing TDS returns.

6. Importance of TDS Compliance:

• Ensures timely deduction and deposit of taxes to the government.
• Avoids penalties, interest, and legal issues related to non-compliance.
• Facilitates accurate reporting and compliance with tax regulations.