TDS Return: Consequences of Non-Filing of TDS Return
Tax Deducted At Source Or TDS
Tax Deducted at Source, commonly known as TDS is one of the major sources of collecting tax by the Income Tax Department, Government of India. It is collected at the time when a transaction takes place. Under the concept of TDS, 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 insurance policy, tax is deducted at the time of payment. The deductor, then deposits this TDS amount with the Income Tax (I-T) department. Through TDS, some portion of the tax is automatically paid to the I-T department. Therefore, TDS is also considered as a method of reducing tax evasion.
TDS is deducted at the range varying from 1% to 10%.
What Is TDS Return?
TDS Return is the summary of quarterly statements which is to be submitted with the I-T Department. The statement shows a summary of all the entries for TDS collected by the deductor and the TDS paid by the deductor to the Income Tax Authority. The mandatory details to file TDS returns are:
- PAN of the Deductor/Deductee
- Amount of Tax paid to Government
- TDS Challan Information
- Others, if any
Who Has To File TDS Returns?
TDS returns are to be filed by the employers/organisation/institutions who have a valid TAN (Tax Collection and Tax Deduction Number).
Transactions On Which TDS Is To Be Deducted
TDS is deducted on various transactions and following are the some of the examples:
- On payment of salary
- On income by way of securities
- On income by way of winning lottery, puzzles, quiz competitions and others
- On income from horse races
- On income by way of insurance commission
- On income by way of National Saving Schemes, etc
Who All Are Liable To Deduct TDS?
Deductors which are liable to deduct tax are:
- Individuals
- Hindu Undivided Family
- Limited companies
- Partnership firms
- Body of individuals
- Association of people
- Local authorities
Forms Of TDS
| Form | Particulars |
| Form 24Q | TDS on Salary |
| Form 26Q | TDS in any other case |
| Form 27Q | TDS on income received from interest, dividends or any other sum payable to NRI’s |
| Form 27EQ | TDS on income received from collection of tax at source |
Form 24Q:
- This form is used to prepare eTDS returns for the TDS deducted on salary under Section 192 of the Income Tax Act, 1961.
- It is to be submitted on quarterly basis by the deductor.
- It consists of the details of the salary and TDS deducted by the employer.
It comprises of two annexures
- Annexure I: It consists of the details of the deductor, deductee and challans. It is required to be submitted for all the four quarters.
- Annexure II: It consists of the salary details of the deductee. It is to be submitted in the fourth and the final quarter comprising of the details of deductee’s salary of the entire financial year.
Form 26Q:
- This form is used to prepare eTDS returns for the TDS deducted on all payments other than salary under Section 200(3), 193 and 194 of the Income Tax Act, 1961.
- It is to be submitted on quarterly basis by the deductor.
- The income of which tax is deducted includes interest on securities, dividend on securities, professional fees, etc.
If the TDS is deducted by non-governmental deductor, then the PAN of the deductor is to be compulsorily provided. However, if the TDS is deducted by governmental deductor, then ‘PANNOTREQD’ has to be mentioned on the form.
Form 27Q:
- This form is used to prepare eTDS returns for the TDS deducted on payments made to NRIs and foreigners other than salary under Section 200(3) of the Income Tax Act, 1961.
- It is to be submitted on quarterly basis by the deductor.
- The income of which tax is deducted includes interest, bonus, any additional income or any other sum to be paid to NRI or foreigner.
- If the TDS is deducted by non-governmental deductor, then the PAN of the deductor is to be compulsorily provided. However, if the TDS is deducted by governmental deductor, then ‘PANNOTREQD’ has to be mentioned on the form.
Form 27EQ:
- This form consists of quarterly statements that furnish the details and information of the tax collected at source, under Section 206C of the Income Tax Act, 1961.
- It is to be submitted on quarterly basis by the seller and it is mandatory to furnish TAN.
- It comprises of the statement of Tax Collected at Source (TCS), which is the tax collected by the seller. Whenever a buyer purchase certain goods or commodities, then the seller collects the tax from the buyer through the TCS medium. This tax can be collected in any mode of payment including credit.
- If the TDS is deducted by non-governmental deductor, then the PAN of the deductor is to be compulsorily provided. However, if the TDS is deducted by governmental deductor, then ‘PANNOTREQD’ has to be mentioned on the form
How To File TDS Returns? – Procedure of Filing of TDS Returns
Due Dates For Filing TDS Returns
| Quarter | Period | Due Date |
| 1st Quarter | 1st April – 30th June | 31st July |
| 2nd Quarter | 1st July – 30th September | 31st October |
| 3rd Quarter | 1st October – 31st December | 31st January |
| 4th Quarter | 1st January – 31st March | 31st May |
Penalties For Late Filing Of TDS
| E-Filing Date | Total Income < Rs. 50,000 | Total Income > Rs. 50,000 |
| Up To 31st August | Rs. 0 | Rs. 0 |
| 1st September-31st December | Rs. 1000 | Rs. 1000 |
| 1st January – 31st March | Rs. 1000 | Rs. 10000 |
FAQs
- How can TDS be deposited to Central Government?
- The amount of TDS can be paid online by logging on to NSDL website and selecting 281 challan and mode of payment via net banking. These payments are to be made before filing the eTDS return.
- Who is required to issue TDS Certificate?
- Every person deducting tax as per the provisions of Section 203 is required to issue TDS certificate to the payee against the tax deducted.
- What is TDS justification report?
- The document which works as an annexure to the intimation which is to be sent to the deductor is known as TDS justification report. It is to be sent to deductor through mail/post.
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