TAX DEDUCTION AT SOURCE (TDS)

MEANING:-A TDS return is a summary of all the transactions related to TDS made during a quarter. It is a system introduced by income tax department where person responsible for making specified payments such as: salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment. The TDS return statement includes details like the PAN no. of the deductor & the deductees, all the detailed particulars of the TDS paid to the government and the TDS challan information.  To revive the economy and help the taxpayers while the COVID 19 crises is prevailing in India; the FM Minister on 13th may 2020 announced new TDS rates by reducing 25% for non-salaried section. This reduction shall be applicable for the remaining part of the financial year2020-21.These new rates will be in force from 14th may, 2020 to 31st march, 2021.

TDS RETURN FORMS:

TYPE OF TDS RETURN FORM

                           PARTICULARS

      FORM 24Q

Statement for TDS from salaries.

      FORM 26Q

Statement for TDS on all payments other than salaries.

      FORM 27Q

Statement for TDS on income received from interest, dividends or any other sum payable to non-residents.

      FORM 27EQ

Statement of collection of tax at source.

MANDATORY CONDITION FOR TDS RETURN FILING

1. DUE DATE FOR PAYMENT, RETURN AND CERTIFICATE OF TDS

QUARTER ENDED

PAYMENT DATE

RETURN DATE

TDS CERTIFICATE

Up to 30th June

7th July

31st July

15TH august

up to 30th September

7th October

31st October

15th November

Up to 31st December

7th January

31st January

15th February

Up to 31st March

30th April

31st may

15th June

2. NON FILING OF TDS RETURN

If an assesse has not filed return within 1 year from the due date of filing return or if a person has furnish incorrect information then he/she liable for penalty i.e. not less than Rs.10,000 & not more than Rs.1,00,000.

3. PENALTY FOR DELAY IN FILING TDS RETURN

According to SEC234E, if an assesse fails to file his/her TDS return before the due date , a penalty of Rs.200 per day shall be paid by assesse until the default continues. However, the total penalty does not exceed the TDS amount.

DOCUMENTS REQUIRED

  1. TAN number of the assesse .(mandatory)
  2. Contact number of assesse.
  3. Email id of the assesse.
  4. PAN number of the person responsible for deduction of tax.
  5. Aadhaar number of the person responsible for deduction of tax.
  6. Tax paid challans pertaining to the quarter.
  7. Statement of deduction containing PAN numbers of the persons who’s TDS is deducted.

Non-reflection of TDS Credit can be due to several reasons like non-filing of TDS statement by the payer, quoting incorrect PAN of the deductee in the TDS statement filed by the payer. The payee has to contact the payer for ascertaining the correct reasons for non-reflection of TDS credit in form 26AS.

TDS certificates are issued by the deductor (the person who is deducting tax) to the deductee (the person from whose payment the tax is deducted). There are mainly two types of TDS certificates issued by the deductor.

. Form 16: which is issued by the employer to the employee incorporating details of tax deducted by the employer throughout the year, and

. Form 16A: This is issued in all cases other than salary.

Form 16A & form 16(TDS certificate) can only be generated if you have correctly filed your TDS returns.

Following are the basic duties of the person who is liable to deduct tax at source:-

. He shall obtain Tax Deduction Account Number and quote the same in all the documents pertaining to TDS.

 . He shall deduct the tax at source at the applicable rate.

 . He shall file the periodic TDS statements, i.e., TDS return.

 . He shall issue the TDS certificate to the payee in respect of tax deducted by him.

You can file a self-declaration to the bank in Form 15H if you are a senior citizen. Otherwise, you can file self-declaration in Form 15G.