What is TDS Return Filing?

TDS return filing involves reporting tax deducted at source to the Income Tax Department. Entities deducting TDS must file quarterly returns, mentioning:

• Deducted and deposited amounts
• Type of payment (salary, interest, rent)
• PAN details of deductor and deductee

This ensures proper tax credit and helps avoid penalties by staying compliant with tax laws.

Documents Required for TDS Return Filing

For smooth online TDS return filing, keep these details ready:

• TAN Details: Mandatory for identifying the deductor.
• PAN Details: Required for both deductor and deductee to ensure correct tax credit.
• Previous TDS Filings: Useful for reference or continuity.
• Filing Period: Specify the quarter or year to match the tax period.
• Incorporation Date: Needed especially for new or first-time filers.
• Transaction Count: Total TDS transactions in the period for accurate processing.
• Entity Type: Mention whether Proprietorship, Partnership, Company, or LLP as it affects tax norms.

Who Should File TDS Returns?

Under the Income Tax Act, 1961, TDS returns must be filed for:

• Salary payments
• Income from securities
• Lottery, puzzle, or game show winnings
• Horse race winnings
• Insurance commissions (including NSC)

Also, individuals, HUFs, firms, companies, local authorities, and associations deducting tax are required to file TDS returns.

TDS Compliance Requirements for Businesses

Businesses must follow TDS rules if:

• Paying salaries above ₹2.5 lakhs annually to any employee
• Paying rent exceeding ₹2.4 lakhs yearly
• Making payments over ₹30,000 per bill or ₹1 lakh yearly to contractors
• Paying professionals more than ₹30,000 in a year

Types of TDS Return Forms

TDS return forms report tax deductions made by individuals and businesses. Each form is assigned for different payment types under the Income Tax Act, 1961.

Form 24Q

Used by employers under Section 192 for TDS on salary payments. It summarizes employee salaries and deducted TDS on a quarterly basis.

Form 26Q

Filed for TDS on non-salary payments like interest, commission, or rent. This quarterly form records total payments and deductions made during the period.

Form 27Q

Applicable for payments to Non-Resident Indians and foreign entities (excluding salaries). Filed quarterly, it covers all non-resident transactions and TDS deductions.

Form 27EQ

Filed by companies and government bodies for TCS (Tax Collected at Source) under Section 206C. It includes detailed reports of all TCS transactions each quarter.

TDS Deduction Rates for FY 2023-24

Here’s a brief of the applicable TDS rates for various payments under the Income Tax Act, 1961:

• Salary (Section 192): Slab rates for individuals and others, applicable if salary exceeds ₹2,50,000.
• EPF Withdrawal (192A): 10% if withdrawal exceeds ₹50,000.
• Interest on Securities (193): 10% if interest exceeds ₹10,000.
• Dividend (194): 10% above ₹5,000.
• Interest from Banks/Post Office (194A): 10% on ₹40,000 (₹50,000 for seniors); for other sources, threshold is ₹5,000.
• Lottery/Game Winnings (194B/194BA): 30% TDS on ₹10,000+ or online gaming winnings.
• Horse Race Winnings (194BB): 30% above ₹10,000.
• Contractors (194C): 1% for individuals, 2% for others; threshold ₹30,000 per bill/₹1,00,000 per year.
• Insurance Commission (194D): 5%–10% on ₹15,000+.
• Life Insurance Maturity (194DA): 5% above ₹1,00,000.
• National Savings Scheme (194EE): 10% on ₹2,500+.
• Mutual Funds Repurchase (194F): 20%.
• Lottery Ticket Commission (194G): 5% on ₹15,000+.
• Brokerage/Commission (194H): 5% on ₹15,000+.
• Rent (194I): 10% for land/building; 2% for plant/machinery above ₹2,40,000.
• Property Transfer (194IA): 1% above ₹50 lakh.
• Rent by Individual/HUF (194IB): 5% above ₹50,000/month.
• Joint Development Agreement (194IC): 10%.
• Professional/Technical Fees (194J): 10% (2% for film royalty) over ₹30,000.
• Mutual Fund Income (194K): 10% on ₹5,000+.
• Land Acquisition Compensation (194LA): 10% above ₹2,50,000.
• Without PAN (206AA): Higher of applicable rate or 20%.
• Non-ITR Filers (206AB): Higher of 5% or twice the standard rate.

Note: Refer to the Income Tax Department website for latest updates.

How to File TDS Return Online: Step-by-Step

Filing TDS returns online ensures tax compliance and avoids penalties. Here’s a simple guide:

1. Prepare the e-TDS/e-TCS return using the prescribed format via Protean TINPAN.
2. Generate the return in ASCII (.txt) format using Protean’s RPU or compatible software.
3. Validate using Protean’s File Validation Utility (FVU).
4. Fix errors (if any) and re-validate.
5. Submit the validated file at TIN-FC or on the Income Tax e-Filing portal.

Even with these steps, mistakes can happen — expert assistance from Sperso Filings ensures timely and accurate filing.

How Sperso Filings Helps with TDS Return Filing

1. Share basic details and documents.
2. Sperso Filings experts prepare and validate your TDS returns carefully.
3. Quick, hassle-free submission ensuring full tax compliance.

Due Date for Filing TDS Return Online

Meeting TDS return deadlines is essential for tax compliance. Here are the due dates:

• Quarter 1 (April–June): 31st July
• Quarter 2 (July–September): 31st October
• Quarter 3 (October–December): 31st January
• Quarter 4 (January–March): 31st May

Filing on time helps avoid penalties and ensures smooth TDS processing.

How to Make Correction on Your TDS Returns

If there are mistakes in your TDS returns, they must be corrected online through the TRACES portal. Follow these steps:

Steps for TDS Challan Correction

1. Log in to the TRACES website.
2. Go to the ‘Defaults’ tab and click ‘Request for Correction’.
3. Select the year, quarter, form type, and token number of the return.
4. Choose ‘Online’ correction type.
5. Under ‘Defaults’, click ‘Track Correction Request’, enter the request number, and select ‘View Request’.
6. Provide KYC details, pick the correction category, make changes, and submit.

Steps for PAN Correction

1. Follow the TDS correction steps above.
2. Select ‘Submit Correction Statement’ → ‘PAN Correction’.
3. Find invalid PANs using deductee or challan details and update them.
4. Save and download the updated file.

Filing Correction Statement

1. Log in to TRACES and download the consolidated TDS file.
2. Make corrections and validate using File Validation Utility (FVU).
3. Upload on TIN-FC or NSDL website.

Offline Challan Correction

1. Fill the correction form from the bank and attach the original challan.
2. Submit one request per challan.
3. Carry PAN Card for corrections in Forms 280, 282, 283.
4. Submit the form to the assessing officer.
5. For online corrections, attach the original authorisation with the taxpayer’s seal.

This ensures errors are corrected properly, keeping your TDS returns accurate and compliant.

Penalty for Failure in Filing TDS Returns

Missing TDS return deadlines can lead to penalties and harm your compliance record. Knowing these penalties helps you avoid extra costs and legal trouble:

• Late Filing Penalty: ₹200 per day under Section 234E until the return is filed.
• Non-Filing/Incorrect Filing Penalty: ₹10,000 to ₹1,00,000 if not filed within a year or if errors remain.

Timely and accurate filing ensures smooth compliance and prevents these penalties.

Why Choose Sperso Filings?

Sperso Filings offers expert-assisted TDS return filing services that make the process simple for businesses and individuals. Our tax professionals ensure accurate TDS calculation, minimising errors and penalties. We handle everything from challan correction to resolving TDS discrepancies, providing complete support for smooth filing.

We also keep you informed on the latest TDS rules, ensuring your returns comply with current tax laws. With timely filing and detailed reports for easy tracking, Sperso Filings ensures hassle-free tax compliance you can trust.