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Procedure for Filing Quarterly TDS Returns

The online procedure for filing TDS returns is a simple and time-saving mode of filing returns. Online mode was introduced by the Income Tax department to ease the difficulties faced by taxpayers in the filing of TDS returns. Offline mode of filing had become tedious after a point of time. With the introduction of online mode, a large number of taxpayers have shifted base from offline mode to online mode. TDS returns can be filed both ways – offline or online.

What is the procedure for filing quarterly TDS returns online?

  • Step – I : The data structure or file format in which the e-TDS / e-TCS return is to be prepared has been notified in the TIN NSDL website - https://www.tin-nsdl.com/services/etds-etcs/etds-rpu.html

  • Step – II : E-TDS/E-TCS return, which is in accordance with the file formats, needs s to be prepared in clean text ASCII format. It shall be with 'txt' as filename extension. E-TDS/E-TCS return can be prepared using Return Preparation Utility. This utility is provided by NSDL or any other third party software.

  • Step – III : After preparation of file as per the file format, the file should be verified using the File Validation Utility (FVU) provided by NSDL.

  • Step – IV : The FVU will generate a report of errors in case any error has been found in the report. Rectify the errors. Verify the file again through the FVU.

Note: Registration of organization at http://incometaxindiaefiling.gov.in/ is mandatory for online uploading of TDS/TCS returns.

What TDS forms are available?

Depending on the purpose of deduction, forms shall be used for TDS return filing. These forms shall be signed and verified by the authorized signatory in Form 27A.

TDS Return FormsApplicability
Form 24QTDS on salaries
Form 26QTDS other than salaries
Form 26QBTDS on transfer of immovable property
Form 27QTDS for non-residents

File TDS returns quarterly Offline

  • Step – II : E-TDS/E-TCS return, which is in accordance with the file formats, is to be prepared in clean text ASCII format. It shall be with 'txt' as filename extension. E-TDS/E-TCS return can be prepared using Return Preparation Utility. This utility is provided by NSDL or any other third party software.
  • Step – III : After preparation of file as per the file format, the file should be verified using the File Validation Utility (FVU) provided by NSDL.

  • Step – IV: The FVU will generate a report of errors in case any error has been found in the report.

    Rectify the errors. Verify the file again through the FVU.

  • Step – V :Generated .fvu file can be submitted at TIN-FC.

Each TDS return shall be saved in a pen drive/CD and shall be submitted along with Form 27A. It shall be duly signed by the authorized signatory.

What are the due dates for filing TDS returns?

TDS Return shall be filed quarterly. It means there shall be four original TDS returns in a year.

PeriodTDS Return due date
1st April to 30th June31st July
1st July to 30th September30th October
1st October to 31st December31st January
1st January to 31st March31st May

What are the charges for non-filing of TDS returns?

Section 234E attracts late filing fees where the return is not filed on time or in other words within the due date. Late filing fees shall be Rs. 200 per day of default. Amount of fees charged under this section shall not exceed the amount of TDS. A return cannot be filed without payment of late fees.

What is the quantum of penalty charged for non-filing of return?

The penalty shall be charged u/s 271H where a person has not filed his TDS statements or has failed to file TDS returns on or before the prescribed due date. Assessing officer has the right to impose such a penalty.

The minimum penalty levied shall be equal to Rs. 10,000 which can go up to Rs. 1, 00,000. Such penalty will be in addition to late filing fees u/s 234E. However, no such penalty shall be levied if he proves that -

  • Tax deducted has been paid to Government.
  • The late filing fee and interest are paid to the credit of Government.
  • Such return is filed before the expiry of one year from the specified due date.

It is to be noted that all three conditions should be satisfied. They are not independent of each other.

FAQs

What are the prerequisites for uploading TDS returns?

Before uploading TDS return, one must ensure the following:

  • A valid TAN is necessary. It should be registered on the E-filing portal.
  • A valid and registered DSC is required for e-filing through DSC.
  • For e-filing through EVC, principal contact’s PAN, bank account or demat account should be linked to Aadhar.

How to upload TDS returns on Income Tax portal?

Following is the procedure to upload TDS returns on Income Tax Portal

  • Go to http://incometaxindiaefiling.gov.in/
  • Click on ‘Login Here’. User ID shall be your TAN.
  • Click on upload TDS under the TDS tab.
  • Provide statement details such as : TAN, FVU version, financial year, Form name, Quarter, Upload type
  • Then click on validate
  • Validation can be done either through DSC or EVC.
  • For validating, TDS zip file shall be uploaded.
  • Post validation, return shall be submitted successfully and E-mail regarding the same shall be sent to your registered E-mail ID.

Can TDS return can be revised?

Post submission of return, if any error is found, then the tax payer can revise TDS return. Revision can be done n number of times. There is no limit on number of times to file a revised return.

What are the benefits of TDS?

The following are the benefits of filling TDS

  • It helps the government in regular collection of taxes.
  • It ensures for a regular income to the government.
  • It is compulsory to file TDS return as per Income Tax Act, 1961.
  • It helps in avoiding a high lump sum amount in one go. Instead, it divides the entire tax payment over a period.

What are the eligibility criteria for filing TDS return?

A person making the following specified payments is required to deduct tax at source and file TDS return:

  • Payment by way of salaries
  • Income by way of “Income on Securities”
  • Income by way of winning lottery, puzzles (casual winning)
  • Income from winning in horse races
  • Insurance Commission
  • Payment in respect of National Saving Scheme
  • Payment of professional, technical, non –compete fees
  • Payment of maturity proceeds from insurance policies etc

How to check already filed TDS statement?

To view already filed TDS statement:

  • Login to Income tax E-filing
  • Click on TDS tab and select ‘view filed TDS’
  • Select Financial year, Form name and quarter.
  • Click on view details.
  • The status of TDS return uploaded shall be displayed.
  • Post validation, status shall either be accepted or rejected
  • Reason shall be displayed if the status is rejected.
  • Click on token number and download provisional receipt, if return is accepted.

What shall be the late filing fee in the following case?

The quarterly statement of TDS i.e. TDS return for the first quarter of the financial year 2018-19 is filed by Mr. K on 4-4-2019. Tax deducted at source amounted to Rs. 84,000.

Calculate the quantum of penalty in the below mentioned case?

TDS return for the first quarter of the year 2018-19 is filed by KL Sharma LTD on 4-4-2019. Tax deducted at source amounted to Rs. 8, 40,000. Before filing the TDS return the company has paid the TDS, interest and late filing fees to the credit of the Government. Will the company be liable to penalty under section 271H for delay in filing the TDS return?

Penalty under section 271H can be levied by assessing officer for delay in filing the TDS return. In this case, the due date of filing the TDS return for the first quarter of the year 2018-19 is 31st July, 2018.

The return is furnished on 4th April; 2019. Thus, there is a delay of 247 days.

No penalty under Section 271H will be levied in case of delay in filing the TDS/TCS return if following conditions are satisfied:

  • Tax deducted has been paid to Government.
  • Late filing fee and interest is paid to the credit of Government.
  • Such return is filed before expiry of one year from the specified due date.

Thus, penalty will not be levied under section 271H.

Calculate the quantum of penalty in the below mentioned case?

TDS return for the first quarter of the year 2018-19 is filed by KL Sharma LTD on 4-4-2019. Tax deducted at source amounted to Rs. 8, 40,000. Before filing the TDS return the company has paid the TDS, interest and late filing fees to the credit of the Government. Will the company be liable to penalty under section 271H for delay in filing the TDS return?

Penalty under section 271H can be levied by assessing officer for delay in filing the TDS return. In this case, the due date of filing the TDS return for the first quarter of the year 2018-19 is 31st July, 2018.

The return is furnished on 4th April; 2019. Thus, there is a delay of 247 days.

No penalty under Section 271H will be levied in case of delay in filing the TDS/TCS return if following conditions are satisfied:

  • Tax deducted has been paid to Government.
  • Late filing fee and interest is paid to the credit of Government.
  • Such return is filed before expiry of one year from the specified due date.

Thus, penalty will not be levied under section 271H.

When can I expect by TDS refund?

TDS refund depends on when you have paid your TDS. If the TDS was paid, before or on the due date, then the refund can be expected within 3 to 6 months period from the Income Tax department.

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