TDS Returns Filing

All you need to know

What is TDS Return?
The TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department and TDS Return needs to be filed in appropriate TDS Return Forms.

Important notes:

• TDS Return is required to be filed by any person who is liable to deduct tax at source.
• It is a is a quarterly statement which has to be submitted to the Income Tax Department of India.
• Submitting TDS Return is mandatory if you are a deductor.
• It should contain all details of TDS deducted and deposited by you for a particular quarter.

Pre-requisites of TDS Return Filing

• The first requirement for filing a TDS Return is to obtain a valid TAN (Tax Deduction Account Number) and PAN (Permanent Account NumberYou need to assess if you are required to deduct TDS on which payments.
• Transaction details and Payment details.
• Usually, all types of payments such as Salaries, Interest, Professional Fees, Payment to Contractors, Rent of Machinery, Rent of Building etc are covered under liable payments.
• There are prescribed rates for every type of TDS payments under the Income Tax Act, 1961.

Types TDS return forms:

• TDS return Form 24Q: Statement for tax deducted at source from salaries
• TDS return Form 26Q: Statement for tax deducted at source on all payments other than salaries.
• TDS return Form 27Q: Statement for tax deduction on income received from interest, dividends, or any other sum payable to non residents.
• TDS return Form 27EQ: Statement of collection of tax at source.

1. So If you are a deductor and has made payments to resident Indians with regards to any of above, you should file Form 24Q (TDS on salary payments) and Form 26Q (TDS on payments other than salaries) on a quarterly basis. If you have made any payments to non-residents, you are required to file Form 27Q on a quarterly basis.
2. Form 16A and Form 16 (TDS Certificates) can only be generated if you have correctly filed your TDS Returns.

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