TDS RETURN Tax Deducted at Source, as the name signifies, refers to deduction of tax from the source of income. The details furnished in the TDS Returns are captured in Form 26AS for the deductee, basis which they can avail the credit of the TDS, while filing their Income Tax Returns.
LEGAL PROVISIONS OF TDS TIME OF DEDUCTION
DUE DATE OF PAYMENT
FILING OF RETURNS
TDS is generally required to be deducted at the time of payment getting due or actual payment, whichever is earlier.
Tax deducted up to the month of February (in a Financial Year) is required to be deposited on or before 7th of the next month. However, tax deducted in the month of March can be deposited on or before 30th April of the financial year immediately following the financial year in which tax has been deducted.
After deducting and remitting the taxes to the Central Government, the deductor is required file a statement with the Income Tax Department showing the details of taxes deducted and deposited during a particular period to substantiate that the quantum of taxes deposited is in line with the taxes deducted. This statement is known as TDS Return.
DUE DATE OF FILING RETURNS
FORMS FOR NON-DEPOSIT OF FILING RETURNS TDS
TDS Returns are required to be filed quarterly.
TDS Returns are filed in the various forms depending on the purpose of deduction. Following forms are available for TDS Return filing:
The failure to remit TDS in the government’s account within stipulated time-limit would attract interest, penalty and rigorous imprisonment of up to seven years.
PROCESS OF FILING TDS RETURNS Step by Step procedure to file TDS Returns is as follows: 1. Preparing TDS Return 2. Generating FVU Fill
e-TDS Return is required to be prepared (using departmental utility or third-party software) in clean text ASCII format with ‘.txt’ as filename extension. Verify the prepared file using the File Validation Utility (FVU) provided by NSDL. In case file has any error, FVU file will give its report. Rectify the errors and verify the file again through FVU.