Tax Deducted at Source

TDS (Tax Deducted at Source) Return is a means for collecting income tax in India, under the Indian Income Tax Act of 1961, on payments that are made in cash, cheque or credit. Any company or person making a payment is required to deduct tax at source if the payment is above the threshold limit.

How To Deposit Online TDS Return

Online TDS return is a statement given to the IT department every quarter. Every deductor needs to deposit income tax and file for TDS return on time. Lawwale assists and guides you on online TDS return in 3 easy steps:

 

Information Collection

Our agents will set up a seamless process for data collection
Step 1

Return Preparation

Your return will be prepared as required
Step 2

Return Filing

Before you know it, your return will be ready for filing
Step 3

Benefits of TDS

It is a source of revenue for the Government to manage the different schemes for the citizens of the country.

Types of TDS Return forms

FORM 24Q

This form is used as a statement for tax deducted at source from salaries.

FORM 26Q

This form is used as a statement for tax deducted at source on all payments other than salaries.

FORM 27Q

This form is used as a statement for tax deduction on income received from interest, dividends or any other sum payable to non-residents.

FORM 27EQ

This form is used as a statement of collection of tax at source.

TDS Return is deducted on the following nature of payments

  1. Contractor
  2. Salaries
  3. Interest payments by banks
  4. Commission payments
  5. Rent payments
  6. Consultation Fees
  7. Professional Fees

TDS Return Certificate

Types of forms:

  1. Form 16,
  2. Form 16A,
  3. Form 16 B, and
  4. Form 16 C
Form Certificate of Constancy Due date
Form no.16
TDS - salary payment
Yearly
31st May
Form 16 A
TDS-non-salary payments
Quarterly
15 days from the due date of filing return
Form 16 B
TDS on sale of property
Every transaction
15 days from the due date of filing return
Form 16 C
TDS on rent
Every transaction
15 days from the due date of filing return

Under Section 234 E, one has to pay a fine of Rs. 200/- per day till your TDS Return is filed.  Every day for delayed payment is charged as equal to the amount that has to be paid as TDS.

Eligibility Criteria for filing a TDS return:

Organizations and employers bearing a valid Tax Collection and Deduction Account Number (TAN) can file TDS return. A person making the following payments mentioned under the Income Tax Act, 1961 are required to deduct tax at source and then it needs to deposited within the prescribed time:

  1. Income from ‘Income on Securities’
  2. Income through lotteries, puzzles and others
  3. Income from money won at horse races
  4. Payment of salary
  5. Insurance commission
  6. Payments made in respect of National Saving Scheme and others

Checklist (Documents required)

  1. PAN card of the deductor
  2. PAN card of the deductee
  3. TDS challan information

FAQs

Deductor is a company or person that makes the payment after deducting TDS

Deductee is a Company or person receiving the payment

A Deductor has to deposit the TDS to the government and to be filed in the form of a TDS return. The particular nature of TDS deductions has to be filed using different TDS return forms. TDS filed a quarterly basis.

TDS Return is to be deposited to the Government by the 7th of the month succeeding the tax period.

If the taxpayer takes more than a year to file the TDS return or furnishes the wrong details of PAN No., TDS amount, he/she will need to pay a penalty of maximum Rs. 10,000 to Rs. 1 lakh.

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