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TDS Return Filing

 

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TDS

Tax Deducted at Source or TDS may be a source of collecting tax by Government of India at the time when a transaction takes place. Here, the tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier.

In case of payment of salary or life assurance policy, tax is deducted at the time of payment. The deductor then deposits this TDS amount to the tax (I-T) department. Through TDS, some portion of your tax is automatically paid to the I-T department. Thus, TDS is taken into account as a way of reducing evasion .

What is TDS Return?

Apart from depositing the tax, the deductor should also file a TDS return.

TDS return may be a quarterly statement to tend to the I-T department. it’s compulsory for deductors to submit a TDS return on time. the small print required to file TDS returns are:

Eligibility Criteria for TDS Return

TDS return are often filed by employers or organizations who avail a legitimate collection and Deduction Account Number (TAN). a person making specified payments mentioned under the I-T Act are required to deduct tax at source and wishes to deposit within the stipulated time for the subsequent payments :

TDS Return filing Process

Validation of the TDS Return File

The procedure for the validation of the TDS return file is given below:

Fill within the required details within the file

Penalty for delay in filing TDS Return

According to Section234E, if an assessee fails to file his/her TDS Return before the maturity , a penalty of Rs 200 per day shall be paid by the assessee until the time the default continues. However, the entire penalty shouldn’t exceed the TDS amount.

Non-filing of TDS Return

If an assessee has not filed the return within 1 year from the maturity of filing return or if an individual has furnished misinformation , he/she shall even be responsible for penalty. The penalty levied shouldn’t be but Rs 10,000 and less than Rs 1,00,000.

TDS Return Preparation Utility

Deductors/collectors are required to organize e-TDS/TCS statements as per these file formats using, NSDL e-Gov. Return Preparation Utility or in-house software or the other third party software and submit an equivalent to any of the TIN-FCs established by NSDL e-Gov. NSDL e-Governance has developed a software called e-TDS Return Preparation Utility (RPU) to facilitate preparation of e-TDS returns. Users must pass the e-TDS/ TCS return file generated using RPU through the File Validation Utility (FVU) to make sure format level accuracy of the file. This utility is additionally freely downloadable from NSDL e-Gov TIN website.

Revised TDS Return

After submitting the return, if any error is detected, like incorrect challan details or PAN not provided or incorrect PAN provided, the tax amount credited with the govt won’t reflect within the Form16/ Form 16A/ Form 26AS.

To facilitate conformity and confirm that the tax amount is correctly credited and reflected within the Form 16/Form 16A/ Form 26AS, a revised TDS return has got to be filed.

Procedure for filing Revised Return

The following are the various sorts of corrections that are to be made so as to submit an error-free TDS return:

  1.  C1 correction: Under this sort , you’ll fill within the correct details of the deductor just like the name and address of the deductor
  2.  C2 correction: Under this sort , you’ll update challan details which include specific details like challan amount, BSR code, serial number of the challan, tender date of the Challan, etc.
  3.  C3 correction: Under this, you’ll add, change or update details of the deductee
  4.  C4 Correction: Under this sort, you’ll add or delete salary details erstwhile mentioned
  5.  C5 correction: Under this sort , the PAN number of the worker or the deductee are often edited
  6.  C9 correction: Under this sort , you’ll insert a totally new challan then put within the essential deductees

The above mentioned charges would even be required to be again paid just in case a revised return is filed by the deductor.

Revised Return are often filed multiple times to include any changes.

Prerequisites for the submission of revised TDS return

Revised TDS return are often filed as long as the first TDS return is accepted by the TIN central system.

•The assessee can check the status of the TDS return filed online by providing required details, like PAN number and Provisional Receipt number/Token number on NSDL website https://onlineservices.tin.egov-nsdl.com/TIN/JSP/tds/linktoUnAuthorizedInput.jsp

Revised TDS return has got to be prepared by using the foremost recent consolidated TDS statement. this will be downloaded from the TRACES website. For downloading this statement, the provisional receipt/token number of the first statement should be mentioned.

TDS Refund

TDS is that the tax amount deducted at the time of payment. At the year end, while assessing the entire liabilities , there’s a difference between the entire tax deducted during the year and therefore the actual liabilities . If the tax deducted at the source is a smaller amount than the particular liabilities , then the difference between the 2 has got to be paid by the assessee. On the opposite hand, if the tax deducted at source is quite the particular liabilities , it leads to TDS refund.

Status of TDS Refund

The status of TDS refund are often verified within the following ways:

TDS Refund period

The excess TDS paid by the assessee gets refunded. The period of time of TDS refund amount depends on whether you’ve got filed your tax return on or before the maturity or not. If you’ve got filed it on time, then excess TDS amount are going to be refunded between three to 6 months.

Interest on TDS Refund

According to Section 200A of the I-T Act, 1961, if the tax department doesn’t pay the TDS refund amount within the required period of time , they’re going to need to pay an interest of 6% p.a. on the refund amount. This interest is calculated from the primary month i.e. April of any fiscal year . However, no interest is applicable if the TDS refund amount is a smaller amount than 10% of actual liabilities.

Benefits of TDS

Filing TDS return is mandatory as per I-T Act, 1961. a number of its benefits are:

Frequently Asked Question

Answer: The due date for filing ITR for partnership Firm without audit is July 31st every year (with few exceptions, where for AY 2021-22 it is Jul 31st, 2020. If the Partnership firm is required to get audited, then the due date is 30th September *.

Answer: Yes, the partners are required to file their income tax returns individually even after filing Partnership Firm IT return.

Ans. A deductor who fails to deduct the entire or any a part of the tax on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee-in-default in respect of such tax if such resident—
(i) has furnished his return of income under section 139;
(ii) has taken under consideration such sum for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income, and therefore the deductor furnishes a certificate to the present effect in Form No.26A from a accountant .
o However, w.e.f. 01-09-2019, sum paid to non-resident are going to be covered by above provisions.

In such a case, the payee can claim the refund of entire/excess amount of TDS (as the case may be) by filing the return of income.

Ans. A deductor who fails to deduct the entire or any a part of the tax on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee-in-default in respect of such tax if such resident—
(i) has furnished his return of income under section 139;
(ii) has taken under consideration such sum for computing income in such return of income; and
(iii) has paid the tax due on the income declared by him in such return of income, and therefore the deductor furnishes a certificate to the present effect in Form No.26A from a accountant .
o However, w.e.f. 01-09-2019, sum paid to non-resident are going to be covered by above provisions.

In such a case, the payee can claim the refund of entire/excess amount of TDS (as the case may be) by filing the return of income.

Ans. it’s the duty and responsibility of the payer to deduct tax at source. If the payer fails to deduct tax at source, then the payee won’t need to face any adverse consequences. However, in such a case, the payee will need to discharge his liabilities . Thus, failure of the payer to deduct tax at source won’t relieve the payee from payment of tax on his income.

Ans. Following are the essential duties of the one that is susceptible to deduct tax at source.
• He shall obtain tax write-off Account Number and quote an equivalent altogether the documents concerning TDS.
• He shall deduct the tax at source at the applicable rate.
• He shall pay the tax deducted by him at source to the credit of the govt (by the maturity laid out in this regard*).
• He shall file the periodic TDS statements, i.e., TDS return (by the maturity laid out in this regard*).
• He shall issue the TDS certificate to the payee in respect of tax deducted by him (by the maturity laid out in this regard*).
*Refer tax calendar for the due dates.

Ans. to understand the quantum of the tax deducted by the payer, you’ll ask the payer to furnish you a TDS certificate in respect of tax deducted by him. you’ll also check Form 26AS from your e-filing account at https://incometaxindiaefiling.gov.in

Ans. to understand the quantum of the tax deducted by the payer, you’ll ask the payer to furnish you a TDS certificate in respect of tax deducted by him. you’ll also check Form 26AS from your e-filing account at https://incometaxindiaefiling.gov.in

Ans. to understand the quantum of the tax deducted by the payer, you’ll ask the payer to furnish you a TDS certificate in respect of tax deducted by him. you’ll also check Form 26AS from your e-filing account at https://incometaxindiaefiling.gov.in

Ans. to understand the quantum of the tax deducted by the payer, you’ll ask the payer to furnish you a TDS certificate in respect of tax deducted by him. you’ll also check Form 26AS from your e-filing account at https://incometaxindiaefiling.gov.in

Q.10 However, the provisions of section 206AA shall not apply within the following cases:
Ans. As per section 206AA, a declaration in Form No. 15G or Form No. 15H isn’t a legitimate declaration, if it doesn’t contain PAN of the person making the declaration. If the declaration is without the PAN, then tax is to be deducted at higher of following rates : • At the speed laid out in the relevant provision of the Act. • At the speed or rates effective , i.e., the speed prescribed within the Finance Act. • At the speed of 20%.

Ans. Yes, failure to remit tax deducted by you within the government’s account within stipulated time-limit would attract interest, penalty and rigorous imprisonment of upto seven years.

 

Ans. Yes, the decrease in your case are going to be reflected in your Form 26AS and, hence, you’ll check Form 26AS and claim the credit of the tax accordingly. However, the claim of TDS to be made in your return of income should be strictly as per the TDS credit being reflected in Form 26AS. If there’s any discrepancy within the tax actually deducted and therefore the decrease being reflected in Form 26AS then you ought to intimate an equivalent to the deductor and will reconcile the difference. The credit granted by the Income-tax Department are going to be as per Form 26AS. 

Ans. Yes, Finance Act, 2013 has introduced section 194-IA which provides for deduction of tax at source just in case of payment of sale consideration of immovable property (other than rural agricultural land) to a resident. Section 194-IA isn’t applicable if the vendor may be a non-resident. Tax is to be deducted @ 1%. No tax is to be deducted if the consideration is below Rs. 50,00,000. If the sale consideration exceeds Rs. 50,00,000, then tax is to be deducted on the whole amount and not only on the quantity exceeding Rs. 50,00,000.
Ans. Yes, Finance Act, 2013 has introduced section 194-IA which provides for deduction of tax at source just in case of payment of sale consideration of immovable property (other than rural agricultural land) to a resident. Section 194-IA isn’t applicable if the vendor may be a non-resident. Tax is to be deducted @ 1%. No tax is to be deducted if the consideration is below Rs. 50,00,000. If the sale consideration exceeds Rs. 50,00,000, then tax is to be deducted on the whole amount and not only on the quantity exceeding Rs. 50,00,000.
Answer: No tax required to be deducted by a person from any sum payable to- 1. the Government, or 2. the Federal Reserve Bank of India, or 3. an organization established by or under a Central Act which is, under any law for the nonce effective , exempt from income-tax on its income, or 4. a open-end fund specified under clause (23D) of section 10, where such sum is payable thereto by way of interest or dividend in respect of any securities or shares owned by it or during which it’s full beneficial interest, or the other income accruing or arising thereto .