TDS filing for professionals: What you need to know

Posted In | Finance | Accounting Software | India Accounting Tax

Tax Deducted at Source (TDS) is a method of tax collection where the payer of your income withholds a certain amount as tax before making the payment to you. This TDS amount is then deposited to the Income Tax Department. If you are a working professional in India, it is essential for you to understand the process of TDS filing.

 

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1. Who Should File TDS Returns?

TDS returns should be filed by any person or business who has made a specified type of payment after tax deduction. This includes employers who pay salaries to their employees, individuals who pay rent above a certain limit, and businesses that make professional or technical service payments.

 

2. How to File TDS Returns?

TDS returns can be filed both online and offline. However, it is more convenient and efficient to file them online. The Income Tax Department of India provides an online portal for the filing of TDS returns. Alternatively, you can also use private online tax filing services that can guide you through the process.

 

3. Documents Required for TDS Return Filing

The primary document required for TDS return filing is Form 26Q for non-salary deductions and Form 24Q for salary deductions. Additionally, you will also need a TAN number, PAN details, and the details of the tax payments made. It is advisable to keep all these documents ready before starting the filing process to ensure a smooth and efficient filing process.

 

4. Due Dates for TDS Return Filing

The due dates for TDS return filing vary based on the quarter in which the tax has been deducted. For the first, second and third quarters of the fiscal year, the due date is the last day of the month following the end of the quarter. For the fourth quarter, the due date is May 31st of the following fiscal year.

 

5. Penalties for Late Filing

If you fail to file your TDS returns on time, you may have to pay a penalty. The penalty amount will depend on how late you are in filing the returns. The longer the delay, the higher the penalty.

 

Understanding how TDS works and knowing how to file TDS returns is an important aspect of financial planning for professionals. It helps you comply with the Indian Income Tax laws and avoid any penalties or legal issues. If you are unsure about the process, it may be a good idea to seek professional help.