E-TDS Return Filing

E TDS Return Filing

Online TDS Filing

Tax Deducted at Source or TDS is mandatory to be filed by a Business entity, which is making any kind of payment to employees or vendors beyond certain limits. The Income Tax Act states that tax will be deducted at source at different rates as provided. TDS return is to be submitted to the Income Tax Department online and it is a quarterly statement, while tax deducted should be paid monthly.

To start deducting and paying taxes first part is to obtain TAN number, After that on each payment made, you need to deduct certain percent of payment as TDS and pay that amount to Govt. online challans and file TDS return every quarter. Failure to do so you can face disallowance of expenses, which in fact will increase your tax outlay. Apart from that if you have taken a TAN number and deducted taxes but not paid it to Govt and TDS return has not been filed, you will be liable for Late filing fee which is Rs 300 per day along with penalty and prosecution.

Procedure for Online TDS Return Filing

  • The format of the file or the data structure in which e-TDS or eTCS return must be prepared.
  • Once that is done, the e-filing of TDS return is made according to the formats in a clean text ASCII format with the file extension of “txt”. e-TCS or e-TDS return filing should be or can be prepared with the help of using return preparation utility provided by either the NSDL or by means of any other third party software.
  • Once your file is prepared, as per how the file format should be it’s time to verify it by using file validation utility or FVU which is also provided by NSDL.
  • Just in case the file has got any errors, the FVU will then give a report of those errors. You can rectify those errors and then verify the file again via FVU.
  • The generated “.fvu”, this file then can be submitted to TIN-FC and then uploaded to the government income tax e-filing website.

Frequently Asked Questions

What does TDS mean?

TDS refers to Tax Deducted at Source. This amount is deducted from diverse payments like Contract Payment, Salary, Commission and so on. The amount that is deducted can be adjusted against the due tax of the deductee.

Who all are required to file a TDS return?

TDS return filing is the responsibility of anyone who is making a payment to somebody for products or services. The payment can be in the form of commission, salary, professional fees, brokerage, contract payments and so on.

Who are eligible for TDS return?

TDS return is compulsory for those individuals whose accounts are audited. For other business entity it is applicable for all payments made to employees and vendors above certain threshold limit.

Are there different TDS forms?

Yes, there are different types of TDS forms that take into account salaries, payments other than salaries, payments made to non-resident and so on.

Is TAN needed when filing for TDS return?

Yes, TAN Number is the first Requirement to start filing TDS or even for deducting TDS. Without TAN if someone deducts TDS that business entity can be prosecuted.

Do employees or deductees require PAN card?

Yes, you do require a copy of your PAN card. This is must to file return and to make TDS credit claimable by deductee. Failure to furnish Pan No. will render deduction at higher rate i.e . 20%.

How may TDS certificates are issued?

There are broadly divided into three types, such as not salary payments, salaries TDS.

Who all are required to field TDS return?

All Government and Corporate Collectors / Deductees are against TDS return filing.

Who is the administrator of online TDS return filing?

The Director General of Income Tax (systems) is the administrator.

How can I file TDS Return?

You can go through the TDS return procedure online with. We are here to assist you throughout the process.

Do I have to mention my TAN details?

Yes, it is absolutely necessary and compulsory that you mention the 10 digital unique TAN while filing for TDS return.