TDS Return

6 Points You Must Know About TDS Return

1. Deduction Under Correct Section :

It is of utmost importance that the TDS be deducted under the correct section of the income tax act.

2. Correct Rate of Deduction:

Apart from deduction under the correct section, it is equally important to check that the correct rate has been applied while deducting the TDS. Otherwise, you may get a notice regarding short deductions.

3. Correct Time of Deduction:

Under TDS laws, time of deduction is also essential. TDS is to be deducted even actual payment of money is not made, but the entry has been made in the books of account. It should also be kept in mind. Otherwise, it will result in a notice regarding payment of additional interest.

4. Correct Calculation of Delay Interest :

If you are filing a delayed TDS return, it is essential to calculate delayed interest correctly. Otherwise, it will result in a notice from the department.

5. Periodic TDS Default Check :

You must check the default status tab by logging into the TDS website periodically. Most of us tend to forget this and any default ascertained by the department keeps on increasing due to the high penal interest rate5

6. Unconsumed Challan :

Before making any further payment of TDS, it is a healthy practice to check any unconsumed challan so that you can utilise the same in the current payment.

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FAQ`s Regarding TDS Return

When you deduct TDS on any payment or salary, you have to file a statement containing the required details of payment and the amount of TDS deducted. This statement is known as TDS return. It has to be filed every quarter.

The steps are as follows:
Step-1. Login to TRACES with the User ID, Password and your TAN
Step-2. Go to “Declaration for Non – filing of TDS statements.”
Step-3. Select relevant details such as return type, the period from the drop-down menu
Step-4. Then, select the reason for non-filing and click on “Add Statement details”.
Step-5. Click submit, and your Nil return is filed.

The penalty for late filing of TDS return is Rs.200 per day subject to a maximum of TDS amount deducted.

When you deduct TDS of any NRI for payment(other than salary) made to him, you have to file a TDS return in Form 27 Q. This return contains the details of the payment made and TDS deducted from that payment.

When you deduct TDS regarding salary payments to your employees under section 192 of the income tax act, you have to file a TDS return in Form 24Q. This return contains the details of the salary given and TDS deducted from that salary payment. The return has to be filed every quarter.

When you deduct TDS for certain specified payments other than salary payments, you have to file a TDS return in Form 26Q. This return contains the details of the payment made and TDS deducted from that payment. The return has to be filed every quarter.

The due dates for filing TDS Returns for FY 2020-2021 is as follows:

Quarter

Quarter Period

Due Date

1st quarter

April`20 – June`20.

31 March 2021

2nd quarter

July`20 – September`20

31 March 2021

3rd quarter

October`20 – December`20

31 January 2021

4th quarter

January`21 – March`21

31 May 2021