TDS Online Return Filing: Tax deducted at source (TDS) as the name suggests is the amount deducted as tax by the person or company from the payments he/she makes such as salaries, professional fees, commission, rent, interest earned, etc., and pays to the government. While the recipient receiving the payment as income is liable to pay income tax to the government, but through TDS, the government provides for a tax deduction in advance from the payments the recipient receives.
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For example, a small business that operates out of a rented property of Rs 50,000 per month has to deduct the TDS as per the rate applicable from the rent and pay the remaining amount to the property owner. Here the applicable rate is 10 per cent. Hence, the small business will reduce the rent by Rs 5,000 and pay Rs 45,000 rent. Below are the key questions around TDS answered for you:
What’s the due date to pay TDS to the government and file TDS return?
If the TDS is deducted every month, then it has to be submitted to the government on or before the 7th of the next month. For instance, TDS deducted in May has to be paid by the 7th of June except for TDS deducted in March which can be paid till April 30th. Also, TDS deducted on rent and property purchase has to be paid in 30 days from the end of the month in which TDS was deducted.
TDS return has to be filed quarterly. The due dates are July 31 for the June quarter, October 31 for the September quarter, January 31 for the December quarter and May 31 for the March quarter.
What is TDS return?
TDS return is nothing but a quarterly summary of all TDS transactions including tax collected from payments as well as deposits made to the Income tax authority during the quarter. The return statement should include PAN details of the TDS deductor and deductee (recipient), particulars of the TDS paid to the government and the TDS challan information.
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Is there any threshold for TDS deduction?
Yes, there is a limit under the Income-tax Act for TDS under various sections. If the payment made during the year is below the threshold, TDS is not required.
As per the data from the Income Tax portal, No TDS on payment of rent in respect of any land or building, furniture or fittings or plant and machinery is required if the amount paid during the financial year does not exceed Rs 2.4 lakh. Similarly, no TDS on salaries to individuals if net taxable income during the fiscal is less than Rs 2.5 lakh, on commission or brokerage not exceeding Rs 15,000, on the fee for professional or technical services less than Rs 30,000, on the amount paid for the sale of products or services by e-commerce platforms below Rs 5 lakh, on payment for the purchase of goods less than Rs 50 lakh, etc.
How much is the TDS rate applicable?
Similar to the threshold limits, the rates also vary as per the payment category. For instance, TDS on payment of rent in respect of any land or building has a 10 per cent TDS rate, 2 per cent on rent on plant and machinery, 5 per cent on commission or brokerage, 10 per cent on the fee for professional services and 2 per cent on the fee for technical services, 1 per cent on the amount paid for the sale of products or services by e-commerce platforms below Rs 5 lakh (5 per cent in cases without PAN), 0.10 per cent on payment for the purchase of goods less than Rs 50 lakh, etc.
How to file TDS return online?
- Log in to incometaxindiaefiling.gov.in with your TAN number which is registered for e-filing
- Click e-File>Income Tax Forms>File Income Tax Forms
- Under ‘Persons with Business/Professional Income’, proceed to ‘Upload TDS Form’ and then click on ‘Let’s Get Started’
- Select the respective TDS form filled, financial year and quarter and upload the TDS form filled and click on ‘Proceed to E-Verify’
- Verify using the OTP shared on your mobile number
- A text message on successful completion of filing will be shared
What are the different forms for filing the return?
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There are different forms for filing returns viz., form 24Q for TDS on salaries, form 27Q for TDS on payments other than salaries to non-resident and foreign companies, form 26Q for TDS on professional fees, interest payments; etc.
Any penalty for late TDS return filing?
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Yes, a fine of Rs 200 per day till the TDS return is filed is levied for late filing. Under Section 234E, the person who is required to deduct/collect TDS/TCS will have to pay a fine of Rs 200 (two hundred) per day until the TDS return is filed. However, the maximum fee to be paid by the TDS deductor will be equivalent to the TDS amount.
