TDS Return Filing

Overview of TDS Return Filing

TDS stands for Tax deducted at Source. As per the provision Income-tax Act, a tax-deductor shall furnish a periodical TDS statement (Quarterly) containing the particulars of deduction of tax formed during the quarter by the determined due date. The Department of Income-tax decides the rate at which the TDS will be deducted. It is the responsibility of the Deductor to deduct the TDS before making the payment and deposit it to the government.

Here, the entity/ individual who deduct the said amount are termed as Deductor, and the entity/ individual whose tax is deducted is termed as Deductee. Also, in the case of Individuals and Businesses, there are various payment Categories under which TDS Return is filed –

• Salary of an individual
• Insurance Commission or the Income from any other sources like lottery puzzles etc.
• Payment from the National saving Scheme.

The categories under which there is eligibility to file the TDS Return on electronic media:

• Company
• Individuals whose accounts are audited under u/s 44AB
• Individuals were holding office under the government.

What are the Benefits of Filing a TDS Return?

Filing TDS Return is mandatory for an individual or any business entity and provides various benefits. A Few of them are mentioned below-

• Tracking Of RecordsTDS Return filing on time helps the government in tracking the records of the inflow of Income. It prevents people form evading taxes.
• Use Of TDS In Nation’s WelfareThe amount received from the TDS Return filing is used for the welfare of the Nation. It ensures a steady source of revenue for the government.
• Fewer Burdens Of TaxpayerTDS is paid quarterly, so there is no burden of paying the lump sum tax at once. By that the burden of responsibility of the tax collection agencies and the deductor are lessened.
• Facilitates Smooth Collection Of TaxTDS Return facilitates a smooth collection of the tax that is used for welfare purposes. It is convenient for the Deductee as Tax is automatically deducted.



What is the Checklist to be Kept in Mind while Filing TDS Return?

• Form 27A must be duly filled.
• Verification of form with the e-TDS return filed electronically.
• Particular of the amount paid and the TDS have to be correctly filled in all the forms, including Form No. 27A, Form No. 24, Form No. 26 and Form No. 27.
• Do not forget to mention Tax Deduction Account Number (TAN) in Form No. 27A.
• Ensure that particulars relating to the depositing of TDS have been mentioned accurately.
• Mention all the details recommended by the authority.
• E-TDS return has to be filed in the ASCII clean text format. To avail of this format, you can use the software of your choice such as Computex, MS Excel, or Tally.
• TDS returns in physical form are submitted at any TIN-FC’s managed by NSDL. If TDS are filed online, then it can be submitted directly at the NSDL TIN website and the deductor has to sign the return through DSC.

What Documents are Required for Filing the TDS Return?

Below-mentioned documents are required for filing the TDS Return:-

General Documents

• TAN (Tax Collection and Deduction Account Number) and PAN of the taxpayer.
• Date of Incorporation of the Business.
• Tenure for which the TDS is to be filed.
• Last TDS filing details.
• Form 16 and a Salary Certificate received from the Employer by the employee.

Interest Income

• Passbook/Bank statement for interest on savings account
• Income statement of Interest for fixed deposits
• TDS certificate issued by the banks & others

Capital Gains

• Particulars of investment in the Capital Gains Accounts Scheme
• Sale & Purchase Deed of the property as well as stamp valuation of the property (for building/land)
• Deed of Re-investment purchase for claiming the exemption from Capital Gains
• Credentials for cost of improvement on the property (if any improvement is done)
• Particulars of expense that has been acquired on transfer
• Stock statement in case of the trading in shares etc. (specifying sale & purchase value of shares)
• In matter of other capital assets the cost of purchase, cost of improvement, value of sale if any)

Section 80 Investments

• Section 80C investment documents: – The investment made under PPF, NSC, ELSS, ULIPS, LIC qualifies for deductions under Section 80C

House Property

• Co-owner details, if property is co-owned
• Address of the said property
• Property Tax, Rent details
• The Interest certificate issued by bank for the housing loan

Tax Savings Investments

• PPF passbook
• Tuition fees receipts
• Repayment certificate for housing loan
• Donation receipts (along with PAN of the donee)
• Fixed deposit receipts
• Deposit receipts for senior citizen saving scheme.
• Life and medical insurance payment receipt

Others

• Receipts of any income from winning the horse races, lottery, etc
• Details of accrued interest on NSC during the year
• Dividend amount warrants/
• Bank Passbook/Statement or interest income certificate
• PPF passbook for interest
• Interest certificates on bonds
• Rent agreement for building, plant & machinery, etc. given on rent (if any)

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