TDS stands for Tax Deducted at Source. As per the government’s TDS Scheme, tax needs to be deducted at the time of making payment to the person. Person who makes the payment – deducts & deposits TDS with the government. TDS is usually deposited to the government by submitting an ‘Income Tax Challan’ along with the payment. Besides depositing tax, as a Deductor, you must also file a TDS Return.
TDS return is a quarterly statement to be given to the IT department. It is compulsory for Deductor to submit a TDS return on time. The details required to file TDS returns are:
Types of TDS Return Forms
|Form 24Q||Statement for TDS from salaries|
|Form 26Q||Statement for TDS on all payments except the salaries.|
|Form 27Q||Statement for TDS on income earned from dividends, interests, or any other amount payable to non residents.|
|Form 27EQ||Statement of TCS (Tax Collected at Source).|
Due Date for Payment of TDS
The due date for Payment of TDS deducted is seventh of the next month. For Example, TDS payment for April will be made on or before 7th may.
Due Date for TDS Filing
The due date for TDS filing is as follows:
|S. No.||Quarter Period||The due date for Filing Form 27Q|
|1.||Q1 (1st April-30th June)||On or before 31st July|
|2.||Q2(1st July-30th September)||On or before 31st October|
|3.||Q3(1st October-31st December)||On or before 31st January|
|4.||Q4(1st January-31st March)||On or before 31st May|
Updated Due date for TDS Return Filing for F.Y 2020-21
|S. No.||Quarter Period||The due date for Filing Form 27Q|
|1.||Q1 (1st April-30th June)||On or before 31st March 2021|
|2.||Q2(1st July-30th September)||On or before 31st March 2021|
|3.||Q3(1st October-31st December)||On or before 31st January 2021|
|4.||Q4(1st January-31st March)||On or before 31st May 2021|
Failure to Furnish PAN
Any person eligible to receive payment for which TDS is required to be deducted is required to obtain a valid PAN (if not obtained) and furnish the correct PAN to the deductor. Care must be taken to furnish the correct PAN, so that the tax deducted can be credited to the correct account. Further, non-furnishing of PAN or furnishing of incorrect PAN would result in the deductor incurring higher TDS at 20% rate and levy of penalty of ten thousand rupees.
Hence, before furnishing PAN for TDS, the deductee must check the PAN status (Must be active) and number. PAN status and number can be checked through the Know Your PAN website of the Income Tax Department. Before furnishing the PAN ensure that it is in active state. If PAN status is inactive, then the deducted must contact the jurisdictional Assessing Officer to change PAN status to active.
While deducting TDS, the deductor should furnish to the deductee a TDS certificate. The deductee can cross check the tax credit by viewing Valid TDS certificate is the TDS certificate downloaded from TRACES (http://www.tdscpc.gov.in) bearing a 7-digit unique certificate number and TRACES watermark.
All TDS certificates must be preserved by the Deductee. TDS certificates on payments other than salary are issued on quarterly basis and TDS certificate for salary is provided on an annual basis. If the TDS certificate is lost, the deductee can request for a duplicate TDS certificate.
TDS credit can be claimed by the deductor. To claim the credit of TDS, the deductee has to mention the details of TDS in his return of income. Deductee should take due care to quote the correct TDS certificate number and TDS details while filing the return of income. If any incorrect detail is provided by the deductee, then tax credit discrepancy will arise at the time of processing the return of income and the same can cause problems in processing the return of income. Recently the NSDL e-Gov prepared a software solution namely e-TDS/TCS return preparation utility (RPU) in order to ease the preparation of e-TDS/ TCS filing returns. The government has made this VB based utility absolutely free while there are other utilities available for multiple statements.
Prerequisites to upload TDS return
Step by step process for the e-filing of TDS return.
To ease the e-filing of TDS, the government of India has introduced a return preparation software solution or e-TDS/TCS return preparation utility (RPU). Lets us move on to the steps to use the utility available on NSDL for the e-filing of TDS return.
Registration of TAN
Registration of TAN on Traces using a token no. and the challan details of the return previously filed by you, followed by E-filing.
Download the utility from TIN-NSDL
Download the utility from TIN-NSDL by clicking on the link- https://www.tin-nsdl.com/downloads/e-tds/eTDS-download-regular.html The two utilities available on TIN-NSDL are as follows:
- RPU (Return Preparation Utility) for the preparation of TDS Return.
- FVU (File Validation Utility) for the authentication of data available in RPU by matching the same with CSI File. Given below is the link from where you can download the utility from TIN-NSDL:
Download CIN File
Download CIN File - a challan status inquiry file needed for data verification during the preparation of TDS Return.
Steps to download CIN File
- Step1: Go to https://tin.tin.nsdl.com/oltas/
- Step2: Click on TAN BASED VIEW.
- Step3: Enter the details required.
Post downloading the utilities
Post downloading the utilities, open RPU → Choose the relevant form number → select Regular → Click to Continue.
Enter the relevant details.
Save the file
Save the file → click on the “Create File” → Select the CSI File (downloaded previously) in the first box, when a dialog box pops up after clicking on Create File.
Store all the files
Select the folder, that stores all the files after generation, in the next box of Error and statistics report file path → Click on Validate. This will generate and save a file.
Open FUV. This will pop up a Dialog Box wherein you need to choose the file with .txt extension in the first box (TDS input file name with path). This is the file which was generated in step 7. Select CSI File and a folder where files will be stored after generation in the second and third box, respectively.
Click on “Validate”. This will generate a few files and an error file will also be generated in case of any mistakes.
Convert the “.fvu” extension file into the ZIP file.
Loin into E-Filing
Log into E-Filing for which the return is getting prepared using the registered TAN → Click on TDS & upload → Enter the details → upload the ZIP File & Signature file → submit the return.
Correct the mistakes encountered during the verification in Step-9 → Recreate the file → Revalidate.
Check the Status
Check the status of the return filed on TRACES after 2-3 days.
The concept of Matching forms the backbone of ITC (Input Tax Credit) under the GST regime.
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