How to file TDS returns for salaried employees?

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. Filing TDS returns is mandatory for employers who have deducted TDS. This article will guide you through the process of filing TDS returns for salaried employees.
 

Step 1: Obtain TAN number

Before you can file TDS returns, you need to obtain a Tax Deduction and Collection Account Number (TAN). This is a 10-digit alphanumeric number issued by the Income Tax Department. It is compulsory for all entities responsible for deducting or collecting tax.
 

Step 2: Deduct TDS from the salary

The employer needs to deduct TDS from the salary of the employee before making the payment. The rate of TDS deduction depends on the income slab of the employee.
 

Step 3: Deposit the TDS with the government

The employer must deposit the TDS with the government within a specified time. This can be done online through the Income Tax Department's official website.
 

Step 4: File TDS return

TDS return is a quarterly statement to be given to the Income Tax Department. It contains details of TDS deducted and deposited by the employer. The forms for filing TDS returns are available on the official website of the Income Tax Department.
 

Step 5: Issue TDS certificate to the employees

After filing the TDS return, the employer needs to issue a TDS certificate to each of the employees whose TDS has been deducted. This certificate serves as proof of the TDS deduction and deposition.
 

Filing TDS returns can seem like a daunting task, but it is a straightforward process if you understand the steps involved. It is not only a legal obligation but also an important part of maintaining financial transparency in an organization. Remember to file your TDS returns in a timely manner to avoid penalties.