How to File TDS Return: A Guide to TDS Return Filing on the Income Tax Portal
The acronym for TDS is Tax Deducted at Source. As the name suggests, it is a tax that is deducted at the source itself from the payment to be made, and the remaining amount is credited to the recipient’s bank account. This is applicable only on certain transactions, and it can be claimed for refund if an individual or an entity has net zero tax liability. In this blog we will understand how to file TDS returns online.
What is TDS Return Filing Exactly?
Tax Deducted at Source (TDS) is a regulation mandated by the Income Tax Department of India under which tax is deducted by the payer at the time of making payments to the payee itself. This tax is deducted from the payment and is applicable to certain types of transactions, such as salary, rent, interest, professional fees, and commission.
Normally, the recipient is liable to pay the income tax. With TDS in place, the tax is collected upfront, it helps the government to get tax payment on-time, so that they can plan capital expenditure accurately.
Applicable TDS Rates
The table mentioned below explains various TDS rates:
| Section | Payment type | Applicable percentage deduction |
| 192 | Salary | As per Slab |
| 194C | Payment to contractors/sub-contractors | 1% (Individual/HUF), 2% (Others) |
| 194A | Interest (other than on securities) | 10% |
| 194J | Professional/Technical Services | 10% |
| 194I | Rent (Land/Building/Machinery) | 2% / 10% |
Eligibility Criteria for Deducting TDS
Following are the eligibility criteria to be liable for deducting TDS
- Organizations with a valid TAN are eligible to file TDS returns.
- Individuals’ accounts audited under Section 44AB
- Deductor can be an individual, HUFs, group of individuals, local authorities, limited companies, partnership firms, etc.
Types of Transactions Where TDS is Applicable
According to the Income Tax Act, the TDS is applicable on the following transactions:
- Income on securities
- Insurance commission
- Earnings generated on winning horse race
- Salary income
- Pay-outs towards NSC
- Earnings generated on winning a lottery, puzzles, etc
Read More: TDS Applicable on Partnership Firms!
Various TDS Forms at a Glance
Below-mentioned is the list of forms applicable to individuals/companies for filing TDS:
| Form | Filing frequency | Purpose |
| Form 27Q | Quarterly | Statement of TDS from interest, dividend, or any other sum payments to non-residents |
| Form 26Q | Quarterly | Statement of TDS in respect of all payments except “Salaries.” |
| Form 24Q | Quarterly | The quarterly statement for TDS from “Salaries.” |
TDS Returns Due Dates
Following are the due dates to keep in mind before proceeding for TDS return filing:
| Quarter 1 | 31st July |
| Quarter 2 | 31st October |
| Quarter 3 | 31st January |
| Quarter 4 | 31st May |
TDS Return Filing Procedure: Upload TDS Return Using DSC
Follow the steps explained below to file a TDS return using DSC:
Step 1: Collect the required information/document such as TAN, PAN, TDS challan details, previous TDS returns (if applicable)
Step 2: Select the correct form for return filing.
(Tip – Choose form 24Q for salary payments and 26Q for non-salary payments)
Step 3: Download the latest version of TDS preparation utility, called Return Preparation Utility (RPU) from the TRACES website.
Step 4: Now, open the RPU and input all the required data, including deductor, deductee and the challan details. Once the data is updated in the software, it automatically validates the data and will assist you in rectification, if any errors are identified.
Step 5: Utilize the File Validation Utility (FVU) provided by the Income Tax Department to validate the TDS return file. The function of FVU is to check whether the file complies with the IT department’s requirements or not.
Step 6: Once the file is successfully validated, the FVU will generate a .fvu file. This will be your final version of the TDS return, which is to be submitted.
Step 7: Visit the official website of the Income Tax Department and log in with your valid credentials.
Step 8: Navigate to the TDS return filing section, where you can upload the .fvu file.
Step 9: Upload the .fvu file and provide other required details such as financial year, quarter, form no. etc.
Step 10: You can validate the return filing using either EVC or DSC.
Note: To validate the return using DSC, you need to attach the signature with the return file and upload it.
Also, Don’t miss our guide on how to get an income tax refund.
Penalty for Not Complying With TDS Regulation
Following are the various types of penalties that you should be aware of:
Penalty for Late TDS Return Filing Fees
Rs. 200 per day up to the total amount of TDS until the return is filed.
Penalty for Late TDS Payment/Deduction
Interest @ 1% per month (or part thereof) for late deduction.
Interest @ 1.5% per month (or part thereof) for late payment of TDS to the government.
Conclusion
This was all about TDS return filing and how to file TDS returns. We hope that after reading this blog, you understand everything about the TDS return filing. If you have any questions, you can contact our experts. By any chance if you have a business and are looking for a user-friendly accounting and billing software, we highly recommend you to consider subscribing to Munim Accounting and Billing software. For your convenience, we are offering a 14-day risk-free trial at zero cost. Grab it before it gets too late.
FAQs on TDS Returns
What is the deductee code in the TDS return?
Deductee code is a mandatory field in TDS return filing form. If the deductee type is Company, select 01. In case if the deductee is non-company select 02.
Can we file a NIL TDS return?
Under the Income Tax Act of 1961, if no TDS has been deducted in a given quarter, TDS return filing is not mandatory.
Can we file a TDS return after the due date?
Yes, you can file TDS return after the due date. However, a late fee of Rs. 200 per day will be imposed by the Income Tax Department.
How to change PAN in TDS return?
To correct the PAN errors in the TDS return, follow the below steps:
Step 1: Log in to the TRACES website with your valid credentials.
Step 2: Select the ‘Defaults’ option from the main menu.
Step 3: Open the dropdown menu, select the ‘Request for Correction’ option and provide the token number of the statement to be corrected.
Step 4: Select the correction category as ‘PAN Correction’ and provide the other required information.
Step 5: Once the request is submitted, download the ‘Conso File’ and the ‘Justification Report’ for the identification of incorrect PAN details.
Step 6: Once the details are identified, replace them with the correct details and upload the file with the corrected information.
