TDS Return

Tax Deducted at Source or TDS is a kind of deduction of tax under the Income Tax Act, 1961 directly at the source of income. The tax is deducted from the income by the income payer and transferred directly to the government on behalf of the payee. TDS is usually deducted on salary, rent payments, payments to contractors, etc.

The income payer needs to get a TAN or Tax Deduction Number to file a tax return quarterly, known as the TDS return. TDS Return is a quarterly return filed with the Income Tax Department. TDS return filing is mandatory for anyone who has a TAN.

TDS Return Filing In India

Documents Required for TDS Return Filing

  1. Copy of TDS challans deposited
  2. PAN of deductees
  3. Amount of TDS deducted and date of deduction
  4. Exemption Certificates if TDS is not deducted on any payments
  5. Nature of expense for which TDS is deducted
  6. Bank Statements and Invoices

Process of TDS Return Filing

The first step in TDS return filing is the calculation of total TDS deducted based on the documents submitted. On the basis of these documents, a TDS return is prepared and the data is verified from the deductor. The TDS return is filed and the TDS certificates can be downloaded after TDS challans are received.


What are the due dates of filing TDS Returns?
For the first quarterly TDS return, the due date is July 15. For the second return filing, the due date is October 15. For third return, the due date is December 31. The last quarterly return must be filed before May 15.
How is TDS transferred to the government?
The deducted amount is transferred by the deductor to the government through Challan 281.
Is TDS deducted on purchase of a property?
According to Section 194-IA of the Income Tax Act, a purchase of immovable property (other than agricultural land) of more than Rs. 50 lakh is liable for TDS deduction.
What are the different TDS forms?
For TDS on salaries, Form 24Q is filed. For TDS on all payments except salaries, Form 26Q is filed. For TDS on interest, dividend, or any other sum payable to non-residents, Form 27Q is filed. For Collection of tax at source (TCS), Form 27EQ is filed.
Is PAN required for the payees?
Yes, it is important to have the PAN for all payees, like the employees.
What is the penalty for not filing TDS return?
A person who fails to file TDS return on time or files wrong return can face heavy penalty of Rs. 10,000 to Rs. 1,00,000.
What if TDS is deducted, but Tax liability is Nil?
The payee can claim the refund of entire/excess amount of TDS by filing an ITR.
What is the difference between PAN and TAN?
????P?AN is the Permanent Account Number, used for filing ITR and TAN is Tax Deduction Account Number, used for filing TDS return when it is deducted on the source of income by a deductor.
Who issues a TDS certificate?
The person who deducts the TDS is required to issue a TDS certificate to the payee.
Can TDS be claimed without TDS certificate?
???Yes, the tax credit is reflected in Form 26AS and can be checked through Form 26AS to claim credit of the tax.