How to File TDS Returns Online in India?

Posted In | Finance | Accounting Software | Fixed Asset Management

Tax Deducted at Source (TDS) is a system introduced by the Income Tax Department, where a 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 the payment to the receiver. The deducted tax is then required to be deposited to the government exchequer within the specified due dates. Filing TDS returns is a quarterly statement submitted by the deductor to the Income Tax Department. It provides details of the TDS deducted and deposited by the deductor. In this article, we will guide you through the process of filing TDS returns online in India.

 

Step 1: Obtain TAN

Before you can file TDS returns, you need to obtain a Tax Deduction and Collection Account Number (TAN). It is a 10-digit alphanumeric number issued by the Income Tax Department. You can apply for TAN online through the NSDL website or by submitting the Form 49B at any TIN Facilitation Centre.

 

Step 2: Choose the correct TDS return form

Depending on the type of payment and deductee, different TDS return forms are used. Some of the common TDS return forms are:
 

• Form 24Q: TDS deducted from salaries
   

• Form 26Q: TDS deducted from payments other than salaries
   

• Form 27Q: TDS deducted from payments made to non-residents
   

• Form 27EQ: TDS collected at source
   

Step 3: Prepare TDS return

Once you have chosen the correct TDS return form, you need to prepare the TDS return statement. This can be done using return preparation utility (RPU) or any other software approved by the Income Tax Department. The statement should contain details such as TAN, the amount of TDS deducted, type of payment, deductee details, and challan information.

 

Step 4: Validate the TDS return

After preparing the TDS return statement, you need to validate it using the File Validation Utility (FVU) provided by NSDL. The FVU will generate an error report if there are any discrepancies in the return. You need to rectify the errors and validate the return again.

 

Step 5: Submit the TDS return

Once the TDS return has been validated, you can submit it either online or offline. For online submission, you need to log in to the e-filing portal of the Income Tax Department using your TAN. After logging in, go to the 'TDS' section and upload the validated return file. You will receive an acknowledgment number upon successful submission. For offline submission, you need to visit your nearest TIN Facilitation Centre along with the validated return file, Form 27A (a summary of the TDS return statement), and a copy of the provisional receipt of the TDS payment challan. The TIN Facilitation Centre will provide you with an acknowledgment number upon successful submission.

 

Step 6: Check TDS return status

After submitting the TDS return, you can check its status on the NSDL website using your TAN and acknowledgment number. It usually takes 3-4 weeks for the TDS return to be processed and the details to reflect on the deductee's Form 26AS.

 

By following these steps, you can easily file your TDS returns online in India. Timely and accurate filing of TDS returns is crucial to avoid penalties and ensure compliance with the Income Tax Act.