Tax Deducted at Source is a system introduced by the Income Tax Department, whereby individuals responsible for making payments have to deduct tax at source at prescribed rates. TDS applies to various incomes like salaries, commission received, interest received, etc.
Now, every assessee who has deducted TDS is required to file TDS returns. There are quarterly statements submitted to the Income Tax Department by the deductor, and contain information pertaining to TDS deducted and deposited. Different forms have been prescribed for filing returns, depending on the intent of the TDS deduction . Details like PAN of the deductor and deductees, particulars of tax paid to the government and TDS challan information, among other things, can be found in the statements.
The following steps need to be followed to file TDS returns online:
Step 1: The file format in which the e-TDS or e-TCS return is to be prepared has been notified in TIN-NSDL's e-Gov e-TDS/TCS Return Preparation Utility (RPU) webpage.
Step 2: Prepare e-TDS/e-TCS return as per the file formats in clean text ASCII format with 'txt' as filename extension. The returns can also be prepared by making use of the Return Preparation Utility provided by NSDL or any other third-party software.
Step 3: After the file has been created in accordance with the file format, it needs to be verified through the File Validation Utility provided by NSDL.
Step 4: Should any discrepancy be detected, the File Validation Utility shall give a report of the errors. The error(s) needs to be rectified, and the file will once again be verified through the File Validation Utility.
Step 5: The .fvu file that has been generated can be submitted at TIN-FC or uploaded on the Income Tax Department’s e-filing page.
Below are the different TDS forms available:
| Form | Particulars |
|---|---|
| Form 24Q | Quarterly statement for tax deducted at source from “Salaries” |
| Form 26Q | Quarterly statement of tax deducted at source in respect of all payments other than “Salaries” |
| Form 27Q | Quarterly statement of deduction of tax from interest, dividend or any other sum payable to non-residents |
| Form 27EQ | Quarterly statement of collection of tax at source |
Source: Income Tax Department
Here is a more detailed look into the TDS return forms:
Form 24Q is quarterly statement of deduction of tax under sub-section (3) of section 200 of the Income Tax Act in respect of salary for the quarter ended (June/September/December/March) (Financial Year).
Every deductor is required to file the quarterly statement of TDS in Form No. 24Q for each quarter.
It contains two annexures. Annexure I comprises of the deductee-wise break up of TDS, while Annexure II comprises of the details of salary paid/credited for the relevant financial year and net tax payable.
Annexure I should be enclosed with each statement having details of the relevant quarter. Annexure II should be enclosed with the last statement, containing details for the whole financial year.
The list of section codes is as follows:
Source: Income Tax Department
Form 26Q is a quarterly statement of deduction of tax under sub‐section (3) of section 200 of the Income‐tax Act in respect of payments other than salary for the quarter ended (June/September/December/March) (Financial Year).
Unlike Form 24Q, Form 26Q contains only one annexure.
The various sections covered in Form 26Q include:
Source: Income Tax Department
Form 27Q is a quarterly statement of deduction of tax under sub‐section (3) of section 200 of the Income‐tax Act in respect of payments other than salary made to non‐residents for the quarter ended (June/September/December/March) (Financial Year)
Deductors who can avail this form include: Statutory body (Central Govt.), Statutory body (State Govt.), Autonomous body (Central Govt.), Autonomous body (State Govt.), Local Authority (Central Govt.), Local Authority (State Govt.), Company, Branch / Division of Company, Association of Person (AOP), Association of Person (Trust), Artificial Juridical Person, Body of Individuals, Individual/HUF and Firm.
Mention deductor category as per Annexure 1, section codes as per Annexure 2, code as per Annexure 3, nature of remittance as per Annexure 4 and country of the residence of the deductee as per Annexure 5.
Non-government deductors are mandatorily required to quote PAN. In case of Government deductors, "PANNOTREQD" needs to be mentioned.
It is compulsory to fill up the amount columns. Should it not be applicable, the individual should enter 0.00.
Source: Income Tax Department
Form 27EQ is a quarterly statement of collection of tax at source under Section 206C of the Income‐tax Act for the quarter ended (June/September/December/March) (Financial year).
Indicate deductor category as per Annexure 1, section code as per Annexure 2 and remarks for lower/ no/ higher deduction as per Annexure 3.
Sections applicable under Collection Code include:
Source: Income Tax Department
The due dates for filing TDS return for FY 2018-2019 are as follows:
| Quarter | Quarter Period | TDS Return Due Date |
|---|---|---|
| 1st Quarter | 1st April to 30th June | 31st July 2018 |
| 2nd Quarter | 1st July to 30th September | 31st October 2018 |
| 3rd Quarter | 1st October to 31st December | 31st January 2019 |
| 4th Quarter | 1st January to 31st March | 31st May 2019 |
Source: Income Tax Department
Through which software can one prepare e-TDS return?
NSDL e-Gov has made available a freely downloadable facility, known as Return Preparation Utility, for preparation of e-TDS statements.
Are the online forms used for e-TDS return same as the physical copies?
CBDT has notified the forms for filing TDS returns. The forms for electronic and physical returns are the same. E-TDS return has to be prepared as a clean text ASCII file as per the specified data structure (file format), which has been prescribed by ITD.
Where should an individual go to file TDS/TCS returns?
To file TDS/TCS returns, an individual can visit any of the TIN Facilitation Centers, which are managed by NSDL e-Gov. TIN-FCs have been set-up at certain locations across the country. Information pertaining to the same can be found in the NSDL e-Gov-TIN website.
What are the costs to be incurred for filing e-TDS/TCS return with TIN-FCs?
For the purpose of filing e-TDS/TCS return with TIN-FCs, the following expenses have to be borne:
| No. of deductee records in e-TDS/TCS return | Upload charges (exclusive of GST) * GST as applicable |
|---|---|
| Returns having up to 100 records | ₹42.37 |
| Returns having 101 to 1000 records | ₹178.00 |
| Returns having more than 1000 records | ₹578.50 |
What happens if the PANs of the deductees are not available?
In the event that PANs of the deductees are not available for being quoted in the TDS statement, then the individual should deduct tax at a higher rate as specified by ITD, and list such deductee records as ‘C’ in the statement.
What should a deductor do if he or she finds it difficult to file e-TDS return?
For assistance related to filing of e-TDS, one can visit the website of the Income-Tax Department website or the NSDL e-Gov-TIN website. Additionally, the deductor can visit any of the TIN Facilitation Centers for assistance related to e-filing of TDS returns.
