A Tax Deducted at Source (TDS) Return is a quarterly statement submitted by deductors to the Income Tax Department, detailing all TDS-related transactions. It includes information such as the amount of TDS deducted, the type of payment, PAN details of both deductor and deductee, and the challan information for TDS deposited. Filing TDS returns ensures transparency and compliance with tax regulations.
Who is Required to File TDS Returns?
Entities and individuals responsible for deducting TDS must file TDS returns. This includes:
- Employers deducting TDS on salaries.
- Businesses making payments subject to TDS, such as rent, professional fees, or contract payments.
- Banks deducting TDS on interest payments.
- Any person or entity with a valid Tax Deduction Account Number (TAN) who has deducted TDS during the financial year.
Types of TDS Return Forms
Different forms are prescribed for filing TDS returns based on the nature of the payment:
- Form 24Q: For TDS on salary payments.
- Form 26Q: For TDS on all payments other than salaries to residents.
- Form 27Q: For TDS on payments to non-residents.
- Form 26QB: For TDS on sale of immovable property.
- Form 26QC: For TDS on rent payments exceeding specified limits.
TDS Return Filing Due Dates for FY 2024-25
TDS returns must be filed quarterly. The due dates are as follows:
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | April – June | 31st July |
| Q2 | July – September | 31st October |
| Q3 | October – December | 31st January |
| Q4 | January – March | 31st May |
Note: For TDS on property transactions (Form 26QB) and rent (Form 26QC), the return must be filed within 30 days from the end of the month in which TDS is deducted.
Penalties for Late Filing
Failure to file TDS returns on time can attract penalties:
- Late Filing Fee: Under Section 234E, a fee of ₹200 per day is levied for each day of delay, subject to a maximum of the TDS amount.
- Penalty: Under Section 271H, a penalty ranging from ₹10,000 to ₹1,00,000 may be imposed for failure to file TDS returns or for filing incorrect returns.
How to File TDS Returns
TDS returns can be filed online through the Income Tax Department’s e-filing portal. The process involves:
- Preparing the TDS return using the Return Preparation Utility (RPU) provided by NSDL.
- Validating the file using the File Validation Utility (FVU).
- Uploading the validated file on the e-filing portal using your TAN credentials.
- Verifying the return using a Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Ensuring timely and accurate filing of TDS returns is crucial for compliance with tax laws and to avoid penalties. Regularly reviewing TDS transactions and maintaining proper records can facilitate smooth filing processes.
