How to file TDS returns for payments to architects and engineers?

Posted In | Finance | Accounting Software | India Accounting Tax

Tax Deducted at Source (TDS) is one of the modes of collecting income tax from the taxpayers in India. It is governed under the Indian Income Tax Act of 1961. TDS is deducted by employers from the salary of employees and paid to the government. Similar provisions exist for payments made to professionals like architects and engineers. This article will guide you on how to file TDS returns for payments made to architects and engineers.

 

Understanding TDS on Professional Fees

As per the provisions of section 194J of the Income Tax Act, any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of fees for professional services, shall deduct an amount equal to ten per cent of such sum as income-tax on income comprised therein.

 

Procedure for Filing TDS Returns

The following steps outline the procedure for filing TDS returns:
 

• Visit the NSDL website and select the option 'Returns' from the drop-down menu.
   

• Select the form applicable to you (Form 24Q for salaries, Form 26Q for payments other than salaries, Form 27Q for payments made to non-residents, and Form 27EQ for TCS).
   

• Enter the necessary details like the PAN of the deductee, amount of payment, TDS deducted, and other relevant information.
   

• After filling in all the details, verify the information and submit the form.
   

• After submission, a receipt or acknowledgement number will be generated. This number can be used for future reference.
   

Things to Remember

While filing TDS returns, you must keep the following points in mind:
 

• The TDS must be deposited in the government's account by the 7th of the next month.
   

• The TDS returns must be filed quarterly. The due dates for filing are 31st July, 31st October, 31st January, and 31st May for the first, second, third, and fourth quarters respectively.
   

• If the TDS is not deposited on time, a late filing fee will be imposed.
   

• It is mandatory to quote the PAN of the deductee. If the PAN is not provided, a higher rate of TDS will be applicable.

 

Filing TDS returns for payments made to professionals like architects and engineers is a legal obligation under the Indian Income Tax Act. It is a simple process that can be done online on the NSDL website. By following the steps outlined above, one can easily file their TDS returns and stay compliant with the tax laws.