TDS Returns Filing service in Vijayawada
Tax Deducted at Source (TDS) is a significant mechanism under the Indian tax system designed to collect taxes at the source of income generation. It applies to various types of payments such as salaries, interest, rent, commission, and more, where the payer deducts a specified percentage of tax before making the payment to the recipient. File your TDS Return in Vijayawada with our dedicated team of professionals. Cqubes simplifies filing of your TDS Return process in Vijayawada with our expert guidance.
Why TDS filing is necessary:
Filing TDS (Tax Deducted at Source) returns is a mandatory requirement under the Indian Income Tax Act, 1961. It serves several important purposes for both deductors (those deducting TDS) and deductees (those from whose income TDS is deducted):
- Compliance with Income Tax Laws
- Filing TDS returns ensures compliance with the provisions of the Income Tax Act, which mandates deductors to deduct tax at source from certain payments and deposit it with the government.
- Verification and Accuracy of TDS Deductions
- It allows the Income Tax Department to verify the accuracy of TDS deductions made by deductors against the income of deductees. This helps in preventing tax evasion and ensuring that taxes are deducted correctly at the source.
- Credit for Tax Deducted
- Deductees receive credit for the tax deducted at source against their total tax liability through Form 26AS, which is a consolidated tax credit statement. Filing TDS returns ensures that deductees can claim the TDS credit while filing their Income Tax Returns (ITRs).
- Documentation and Record-keeping
- Filing TDS returns involves maintaining proper records and issuing TDS certificates (like Form 16, Form 16A, etc.) to deductees. These certificates are essential documents for deductees to claim TDS credit and provide proof of tax deducted.
- Avoidance of Penalties and Interest
- Non-compliance with TDS return filing deadlines can attract penalties and interest under the Income Tax Act. Timely filing of TDS returns helps deductors avoid these penalties and ensures smooth tax administration.
- Transparency and Accountability
- Filing TDS returns promotes transparency in financial transactions and tax payments between deductors, deductees, and the government. It enhances accountability in tax collection and contributes to effective tax governance.
Deadlines for filing TDS:
The deadlines for filing TDS (Tax Deducted at Source) returns in India are crucial to ensure compliance with Income Tax regulations. Here are the key deadlines for filing TDS returns:
- Quarterly TDS Return Filing Deadlines
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- Quarter 1 (April to June): Due date is July 31st
- Quarter 2 (July to September): Due date is October 31st
- Quarter 3 (October to December): Due date is January 31st
- Quarter 4 (January to March): Due date is May 31st of the subsequent financial year
- Annual TDS Return (Form 24Q, 26Q, 27Q, 27EQ)
- In addition to quarterly returns, an annual TDS return summarizing all quarterly returns must be filed by May 31st of the subsequent financial year for non-government deductors. Government deductors have until June 30th.
- Late Filing Penalties
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- A penalty of Rs. 200 per day is levied for each day of default until the return is filed, not exceeding the amount of TDS.
- If the TDS return is not filed within one year from the due date, a minimum penalty of Rs. 10,000 and up to Rs. 1,00,000 may be imposed.
- Consequences of Non-compliance
- Non-compliance with TDS return filing deadlines and requirements can result in interest charges and penalties. It may also lead to disallowance of expenses claimed by deductors and affect the credit availability for deductees.
- Form 26Q (TDS on Salaries), 24Q (TDS on Contractors/Professionals), 27Q (TDS on Non-Residents), and 27EQ (TCS)
- Each type of TDS has its own specific form for filing returns, and it is crucial to use the correct form and adhere to the prescribed deadlines to avoid penalties and ensure compliance.
Essential Details for filing TDS:
Submitting TDS (Tax Deducted at Source) returns online in India requires careful attention to essential details to ensure accuracy and compliance with Income Tax regulations. Here are the key details and information required for online TDS return submission:
- Deductor Details
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- Tax Deduction and Collection Account Number (TAN): The unique 10-digit alphanumeric code allotted to deductors for deducting and depositing TDS.
- Name and Address of the Deductor: Complete details of the deductor, including name, address, and contact information.
- Deductee Details
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- Permanent Account Number (PAN): PAN of the deductee (individual or entity) from whose income TDS has been deducted.
- Name and Address of the Deductee: Complete details of the deductee, including name, address, and contact information.
- Transaction Details
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- Nature of Payment: Type of payment on which TDS has been deducted (e.g., salary, interest, professional fees, rent, etc.).
- Amount Paid/Credited: Total amount paid or credited to the deductee during the relevant period.
- Amount of TDS Deducted: Total TDS deducted at the applicable rate for each transaction.
- Date of Payment/Credit: Date on which payment or credit was made to the deductee.
- TDS Payment Details: Challan details of TDS deposited with the government, including BSR Code of the bank branch, challan serial number, and date of deposit.
- Form Details
- Form 24Q for salaries, Form 26Q for non-salary payments to residents, Form 27Q for payments to non-residents, and Form 27EQ for TCS.
- Verification and Authentication
- Verify all details and Authenticate the TDS return using a digital signature (if applicable) or through Aadhaar-based OTP authentication
- Filing Timelines
- Adherence to quarterly and annual filing deadlines as per the Income Tax Act to avoid penalties and interest.
How to claim TDS:
Claiming TDS (Tax Deducted at Source) refers to the process by which taxpayers (deductees) avail credit for the tax deducted at source from their income. Here are the key aspects to understand about claiming TDS:
- Form 26AS
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- Verification: Deductees can verify the TDS deducted and deposited against their PAN through Form 26AS
- Form 26AS serves as a consolidated statement showing details of TDS against various incomes.
- Income Tax Return (ITR)
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- Claiming Credit: Deductees can claim credit for TDS while filing their Income Tax Returns (ITRs).
- Should ensure that the TDS details in Form 26AS match the TDS certificates (like Form 16, Form 16A) received from deductors.
- Steps to Claim TDS
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- Ensure Accuracy: Verify that TDS details in Form 26AS are correct and complete.
- Include in ITR: Report the income against which TDS has been deducted in the appropriate schedule of the ITR (e.g., salary, interest, professional fees).
- Enter TDS Details: Enter the TDS details including TAN of the deductor, TDS amount, and relevant income details in the ITR.
- Calculate Tax Liability: Compute total tax liability after deducting TDS credit from the total tax payable.
- Refund Processing: If excess TDS has been deducted and deposited, it will reflect as a refund in the ITR.
- Form 16 and Form 16A
- Receipt and Verification: Deductees receive Form 16 (for salary income) or Form 16A (for non-salary income) from deductors, which details the TDS deducted and deposited. These forms are essential for verifying and claiming TDS credit in the ITR.
- Adjustments and Reconciliation
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- Ensure Reconciliation: Reconcile the TDS details reported in Form 26AS with the TDS certificates received (Form 16/16A) to ensure accurate reporting in the ITR.
- Rectification, if needed: In case of any discrepancies or missing credits, deductees can request rectification from the Income Tax Department.
Start Filing your TDS Returns in Vijayawada with Cqubes
Choose CQUBES to guide and file your TDS Returns in Vijayawada. Our dedicated team will navigate you in obtaining essential tax benefits and other claims in every step of Filing your TDS Returns.
