How to Submit Your TDS Return Online?

The idea behind TDS is to reduce tax evasion by allowing some portion of the taxpayers’ money to be automatically paid to the I-T department. TDS is deducted usually over a range of 1% to 10%.

Any person/organisation making specified payments mentioned under the I-T Act is required to deduct tax at the source and needs to deposit the same within the stipulated time for the following payments:

Salary payments
Insurance commission
Income on securities
Income by winning lottery, puzzles, and others
Income from winning horse races

What Is a TDS Return?

The individual needs to deposit the tax to the Income Tax department followed by filing a TDS return. A TDS Return is basically a quarterly statement to be given to the I-T department and is compulsory for all deductors to submit on time. Among the details required to file TDS returns include:

The total amount of tax paid to the government
PAN of the deductor and the deductee
TDS challan information

A TDS return can be filed by the deductors/employers or organisations who avail a valid Tax Collection and Deduction Account Number (TAN).

Procedure to Submit a TDS Return Online

We are going to discuss the prerequisites, eligibility and step-by-step procedure on how to submit your TDS return online.

Prerequisites for Uploading TDS Returns Online

Before starting the process of uploading the return, you must ensure the following:

Make sure that you have a valid TAN and the same should be registered for e-filing.
The TDS statements must be prepared using the RPU (Return Preparation Utility) and validated using FVU (File Validation Utility.
Check if you have a valid DSC (Digital Signature Certificate) registered for e-filing if you wish to upload TDS returns using DSC.
In case you wish to upload TDS return using EVC (Electronic Verification Code), the principal contact’s bank account or Demat account details should be provided, or the principal contact’s PAN should mandatorily be linked with Aadhar.

TDS Return Submission Online

Who is liable to submit TDS returns electronically?

An assessee is liable to file TDS return online if TDS is deducted from his/her income. It is mandatory to submit the TDS return within the due dates mentioned. In the event where an assessee does not file the return within the prescribed time, he/she will be liable to pay the penalty.

Among the assessees who are liable to file a quarterly TDS return electronically include:

(a) Anyone holding an office under the Government

(b) Anyone whose accounts are Audited u/s 44AB

TDS Return Filing Dates

Quarter	Period	TDS Return Due Date
1st quarter	1st April to 30th June	31st August
2nd quarter	1st July to 30th September	31st October
3rd quarter	1st October to 31st December	31st January
4th quarter	1st January to 31st March	30th April

How to Upload TDS Statements on the Income Tax Portal

Here is the detailed procedure to submit your TDS return online:

Step-1 - Visit the Income Tax Department website and click on Login. Once done, enter your login credentials. Your user ID here will be your TAN.

Step-2 - After you log in, go to TDS and then click on ‘Upload TDS’ under the TDS tab.

Step-3 - At this stage, you will receive a form where you will need to enter all your statement details accurately. Once the details are entered, click on Validate.

Note- TDS statements can be uploaded only from FY 2010-11, and only regular statements can be uploaded on the income tax website.

Step-4 - Your TDS returns can be validated through the following modes:

Step 4a: Using DSC or Digital Signature Certificate-

To upload your statement using DSC, first, upload the TDS zip file and also attach the digital signature file followed by clicking on Upload.
Once the TDS statement is uploaded successfully, you will get a message, and a confirmation mail will be sent to your registered email ID.

Step 4b: Using EVC or Electronic Verification Code-

In case you haven’t generated a DSC, you can still validate your TDS statements using an electronic verification code (EVC). All you need to do is upload the TDS zip file and click on ‘Click here to E-verify’.
At this stage, you will get an option to use an EVC already generated or generate a new EVC.
You can select the appropriate option, enter the EVC, and click on ‘Submit’.

Important Points to Consider for an Error-Free TDS Return Submission

The following points need to be considered to make sure that an error-free TDS return is submitted:

Make sure to fill Form 27A thoroughly, which is then verified in hard copy form with the e-TDS return filed online.
Mention Tax Deduction Account Number (TAN) in Form No. 27A.
When filing the TDS return, make sure that all the details related to the depositing of tax deducted at source are mentioned accurately.
Ensure to submit your e-TDS return in the ASCII clean text format. To use this format, you can take the help of software such as MS Excel, Tally, or Computex.
While submitting the TDS return online, if all the information mentioned is accurate, then a token or a receipt would be issued as an acknowledgement, stating the fact that the TDS return has been filed. In case the return is not accepted, a non-acceptance memo will be issued, clearly stating the reasons for rejections.

Penalty for Delay in Filing a TDS Return Online

If an assessee cannot file his/her TDS Return before the due date, he/she shall pay Rs. 200 per day (as per section 234E) until the time the default continues. However, the total penalty, in any scenario, should not exceed the TDS amount.

Non-Filing of TDS Return

If the return is not filed within one year from the due date of filing return, or if any incorrect information is furnished, the assessees shall also be liable for a penalty no less than Rs 10,000 and no more than Rs 1,00,000.

Recommendation: Procedure for filing quarterly tds returns