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:
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:
A TDS return can be filed by the deductors/employers or organisations who avail a valid Tax Collection and Deduction Account Number (TAN).
We are going to discuss the prerequisites, eligibility and step-by-step procedure on how to submit your TDS return online.
Before starting the process of uploading the return, you must ensure the following:
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
(c) Company
| 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 |
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-
Step 4b: Using EVC or Electronic Verification Code-
The following points need to be considered to make sure that an error-free TDS return is submitted:
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.
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
