Filing of TDS Return

Filing of TDS Return

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Filing of TDS Return
Filing of TDS Return

TDS RETURNS FILING

TAN Number is a 10 Digit Alphanumeric Number and is utilized as an abbreviation for Tax Deduction and collection Account Number. Each assessee is liable to deduct TDS and required to apply for TAN No. and quote this number in all TDS Returns, TDS payments and other communications regarding TDS with Income Tax Department. Inability to do so attracts a penalty of Rs. 10,000. TDS Returns and Payments would not be received by the banks if TAN No. is not quoted. TDS Returns are to be submitted quarterly.

ADVANTAGE

  1. The intent of the law is more conveniently fulfilled since the tax flow is parallel income flow.
  1. Since tax is collected prior to receiving income, compliance is improved and enforcement costs are reduced.
  1. Because of improved cash-flow, government’s day-to-day borrowing needs are eased.
  1. Among those within the TDS net, the tax burden is shared more equitably.
  1. Since tax collection responsibility is shared by the collection agents, tax officers can devote more time and resources to other functions of tax administration.
DOCUMENTS TO BE SUBMITTED BY DIRECTORS AND SHAREHOLDERS 
  1. Scanned PAN Card of Partners/Directors/Proprietor
    2. Scanned copy of Voter’s ID/Passport/Driver’s License
    3. Scanned passport-sized photograph
    4. Scanned passport-sized photograph
    5. Rental agreement/Sale deed of commercial space
DOCUMENTS TO BE SUBMITTED FOR ENTITY (IF ANY)
  1. PAN Card of Company or Partnership
    2. Board Resolution, in case of company
    3. Incorporation Certificate or Partnership Agreement
    4. Memorandum & Articles of Association

FAQ

What is TDS?

TDS is simply Tax Deducted at Source. As per the Income Tax Act – people responsible for making payments are required to deduct tax at source at prescribed rates.

What are the advantages to pay TDS?

TDS is based on the principle of ‘pay as and when you earn’. TDS is a win-win scenario for both the taxpayers and the government. Tax is deducted when making payments through cash, credit or cheque, which is then deposited with the central agencies.

What is a TDS Certificate?

As TDS is collected on an ongoing basis, it can be difficult to keep track of deductions by an individual. As per Section 203 of the ITA, the deductor has to furnish a certificate of TDS payment to the deductee/payee. This certificate is also offered by banks making deductions on pension payments etc. The certificate is typically issued at the dedicator’s own letterhead. Individuals are advised to request for TDS certificate wherever applicable, if not already provided.

What rate the tax has to be deducted at source?

Tax deduction at source happens at different rate based on the transaction. TDS for salary is determined based on the employees’ salary and tax payable by the employee. TDS rate of 10% is adopted for rent of land, building or furniture if the annual rent exceeds Rs.1,80,000/-

How and when the TDS must be deposited?

Tax Deducted at Source (TDS) must be deposited through banks using Challan 281 quoting the TAN number of the entity. The deadline for payment of TDS is the 7th day of each month.

What are the due dates to file TDS Returns?

TDS Return should be filed quarterly on the 15th day of July, October, January and May. The TDS return filed on these months will correspond to the transaction of the preceding three months.

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