TDS Filing

Tax deduction at source is a means of collecting tax on income, dividends or asset sales, by requiring the payer to deduct tax due before paying the balance to the payee. In India, under the Indian Income Tax Act of 1961, income tax must be deducted at source as per the provisions of the Income Tax Act, 1961.
In case of payment of salary or life insurance policy, tax is deducted at the time of payment. The deductor then deposits this TDS amount to the Income Tax (I-T) department. Through TDS, some portion of your tax is automatically paid to the I-T department. Thus, TDS is considered as a method of reducing tax evasion.
Tax is deducted usually over a range of 1% to 10%.
TDS return is a quarterly statement to be given to the I-T department. It is compulsory for deductors to submit a TDS return on time. The details required to file TDS returns are:
• PAN of the deductor and the deductee
• Amount of tax paid to the government
• TDS challan information
• Others, if any

What are the Types of TDS Returns?

The type of TDS return form to be submitted is mainly based on the nature of income of the deductee. It is crucial to note that there are several types of TDS return forms for different conditions.
Here are the types of TDS return form :

1. Form 24Q

Under Section 192 of the Income Tax Act, 1961, it is used for preparing eTDS returns for a deduction on salaries. It needs to be submitted quarterly by the deductor and contains details like salaries paid and the TDS deducted.
It contains 2 annexures:
•&nbs;Annexure-I comprises of the details of the deductor, deductees and challans
•&nbs;Annexure-II comprises of the salary details of the deductees

2. Form 27Q

TDS for the NRIs and foreigners under Section 200(3) of the Income Tax Act is applicable for payments other than salary made to non-resident Indians and foreigners. It is deductible on payments including interests, bonus, any additional income or sum owed to a non-resident of India.

3. Form 27EQ

In this TDS return form, it is mandatory to furnish TAN and is submitted quarterly. The tax is collected at source under Section 206C of the Income Tax Act, by the seller when a buyer purchases certain commodities. The tax is collected either in cash, credit, demand draft, cheque or any other route of payment.

Eligibility Criteria for TDS Return

TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments :
• Payment of Salary
• Income by way of “Income on Securities”
• Income by way of winning lottery, puzzles and others
• Income from winning horse races
• Insurance Commission
• Payment in respect of National Saving Scheme and many others

Due dates of TDS Return