Online TDS Return Filing in India | eTDS Filing
As per the Income Tax Act, all entities having TAN registration making a payment is necessary to deduct tax at source (TDS) if the payment amount exceeds certain threshold limits. Usually, TDS are made within a range from 1 % to 10 %
eTDS Filing of your business in a hassle free manner and online, so you don’t even have to leave your home with just a few clicks of a mouse.
Online TDS Return Filing - An Overview
Online TDS return filing is a statement given to the Income Tax department every quarter. It is responsible for every tax deductor to deposit advance income tax and file for TDS return on time.
LegalMaps assists and guides you on online TDS return filing in 3 easy steps:
- Information Collection
- Our professionals will set up a seamless process for your data collection
- Return Preparation
- Your TDS return will be prepared as required
- Return Filing
TDS Return for businesses and individuals
An employer or company that has valid Tax Collection and Deduction Account Number (TAN), can file for online TDS return. Any business or individual who makes a particular payment which is stated under the Income Tax Act needs to deduct tax at source. The deposit for the same amount has to be made within the prescribed time. The payment categories include:
- Salary
- Insurance commission
- Income from winning horse races
- Income by way of Securities
- Income by way of winning from lottery, puzzles
- Payment in respect of National Saving Scheme, etc
An assessee can submit an e-TDS return if the same was deducted from their source of income. As mentioned earlier, it is the obligation of the assessee to file it within the due date or be liable to pay a penalty for delay filing. The categories of assessees are eligible to electronically file TDS return every quarter are:
- Company
- Individuals whose accounts are audited u/s44AB
- Individuals holding an office under the Government
Benefits of TDS Return Filing
As per the Income Tax Act of 1961 filing TDS return is necessary as well as it fetches some benefits to individuals or companies. A few advantages of submitting a TDS Return and knowing the refund status are:
- A steady inflow of income to the government.
- Facilitates a smooth collection of income taxes used for welfare.
- No burden of paying income tax lump sum as the payment is done every three months for the whole year
How do we help in Filing TDS Return?
It is mandatory for every tax deductor to submit TDS return to the IT Department of India in quarterly statements. Every detail of the TDS returns has to be accurate and precise. Keeping up with the quarterly tax payments can be cumbersome and if not done it on time, you may attract a huge penalty.
The rate of TDS is set by the IT department (usually range from 1 % to 10 %) based on expense recognized by them. Hence the prescribed rate by the Govt. of the deduction varies. Keeping the threshold limit always in mind while making payments can be tedious.
Once you choose LegalMaps, our professionals prepare the account and file TDS refund on behalf of you. From the beginning stage of preparing the TDS returns until the last phase of the refund, we behave as your consultant. LegalMaps not only does all the paperwork for your business but also makes sure that every government interaction is smooth, Our whole process is truly transparent and we believe it always meets your expectations.
We take care of:
- Computing your TDS payments
- E-filing the TDS return
- Adherence to TDS compliance with regulations
Things to know before Filing TDS Return on time
For any individual who has TDS reduction in their pay, TDS return can be filed online. TDS Return preparation has to be done within the Govt. prescribed time frame because for persons who are deemed as a regular defaulter in India, a grave penalty can be charged. Therefore submitting TDS Return Online in the prescribed time is essential.
For the TDS deductor, it is vital to deposit the subtracted TDS amount to the concerned Govt. department along with the details.
The time period within which the TDS deductor should deposit the deducted amount and the deductee has to file for TDS refund are given below. It is important to stick to the time schedule to avoid incurring a penalty.
For e-TDS return, every single individual who has made the TDS deduction should file the TDS return without fail. The deductor should make quarterly submissions at the IT department. There are different types of forms in accordance with the change in the intent of the TDS deductions made. The PAN details of both the deductees and the deductor both should be added in the filing statement. The filing statement should also contain information about TDS challan and the tax details along with other important details.
In the online TDS return, the filing statement/TDS return is defined as the summary of every transaction made in relation to the quarterly TDS payments. This filing statement should be submitted by the deductor to the income tax department.
For all TDS deductors, the submission of return is mandatory. It contains all details of TDS deductions and deposits made by the deductor. It should also contain PAN card details of deductees and deductor, tax paid particulars, information about TDS challan along with any other extra information that the form demands.
Filing Revised TDS Returns
In the case of online filing of TDS return, if there are any mistakes/errors committed due to incorrect challan details, PAN details or lack of PAN card details, the amount which is credited as the advance tax will not be reflected in the Form 16A/Form16/Form 26AS. In such a situation a revised TDS return must be filed.
To file a revised online TDS return, you need 2 files – one is the consolidated file that containing the details of the deductions made in the particular quarter, and another one is the justification report that containing the information on the mistakes/errors filed in the return.
The period of filing TDS refund
While filing online TDS returns, if you pay more than the actual tax amount payable, you will be eligible to claim excess TDS refund.
The time within which the refund is done depends on whether you have made the income tax return filing before or after the prescribed due date. Where the returns were filed under due date, then you will receive the refund of the excess amount paid by you within 3 to 6 months.
In online TDS return, if there is a situation of late filing or failure to file the returns on time, the individual/company will have to face 2 types of penalties:
- The late filing fee- U/s 2 and 234E
- Non-filing penalty – U/s 271 H
Due dates for online TDS Return Submission on Time
A TDS return has a prescribed time frame the same as a tax payment. Though the TDS return can be filed online, there is a due date mentioned for each quarterly submission. To ensure you are ahead of the compliance deadline, LegalMaps’s Google Calendar has predefined deadline dates marked for every month.
Documents required to file online TDS Return
The following documents have to be submitted for filing the online TDS returns:
- TAN details
- PAN details
- Last TDS filing details, if applicable
- The filing 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 Firm/ Partnership Firm/ Company/ LLP
FAQs on TDS Return
It is the duty of the person (deductor) who is making payment to someone (deductee) for specified goods or services to deduct TDS and file TDS return on time. The specified payment, like- salary, commission, professional fees, interest, brokerage, royalty, contract payments, etc. The person who deducts TDS is known as deductor and the person whose tax is being deducted is known as deductee. TDS is not required to be deducted by Individuals and HUF other than whose accounts are audited u/s44AB.
Yes. It is necessary for employees and deductors to submit their PAN details as well.
While paying TDS in the central government, e – payment is the compulsory process.
The following are the common duties of any individual who is liable (whose accounts are audited u/s44AB) to deduct tax at source. • He shall obtain TAN (Tax Deduction Account Number) and quote the same one in all the documents pertaining to TDS. • He shall deduct the tax at source (as per the relevant section) at the applicable rate. • He shall deposit the tax deducted by him at the source to the credit of the Central Government (by the due date specified in this regard*). • He shall furnish the quarterly TDS statements, i.e., TDS return (by the due date specified in this regard*). • He shall issue the TDS certificate (as per section 203)to the payee in respect of tax deducted by him (by the due date specified in this regard*).
TAN is nothing but an alphanumeric 10-digit unique number mandatory by a person (deductor) who is liable to deduct TDS and furnish TDS return. Thus such a person (deductor) must make an application within a month of deducting TDS for allotment of TAN (Tax Deduction and Collection Number) in Form 49B. This unique number allotted is mandatory to mention in all TDS challans, returns, certificates issued, etc. If a person fails to apply for TAN he may be penalized by assessing officer up to ₹10,000/-.
PAN of the deductor and deductees is essential to quote PAN of all deductees.
Payment can be done using online net banking on NSDL portal by selecting Challan No.281. The TDS deposit should be made before furnish/filing the TDS return. e-payment is only one option for all Corporate assesses and non-corporate assessees whose accounts are liable to audited u/s44AB. Physical payment can be made using Challan No.281 in a Govt. authorized bank branch.
It is a kind of document which serves as an annexure to the intimation to be sent to the deductor. The intimation will be sent to the deductor using mail/post but a justification report will have to be downloaded from the online portal.
To view Demand/Refund Status, follow the below steps:
– Login to the income tax e-Filing website with the necessary details.
– After successfully login, go to “My Account” section and click on “Refund/Demand Status”.
– The below details would be displayed.
Like- Assessment Year, Status, and Reason (if any) for refund failure
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