TDS filing: Frequently Asked Questions

Posted In | Finance | Accounting Software | India Accounting Tax

TDS or Tax Deducted at Source is one of the mechanisms introduced by the government to collect tax. It is a type of advance tax where the tax is deducted from the source of income. The concept of TDS filing is often surrounded by many questions, especially for those who are new to it. Here are some frequently asked questions about TDS filing.

 

1. What is TDS filing?

TDS filing refers to the process of submitting a quarterly statement to the Income Tax Department. This statement includes the details of TDS deducted and deposited by deductors. Deductors can be both government and corporate deductors.

 

2. Who is required to file a TDS return?

All deductors who deduct TDS while making certain payments like salary, commission, rent, etc. are required to file TDS return. This includes government and corporate deductors.

 

3. What is Form 26Q?

Form 26Q is the TDS return statement that is used for TDS deduction on all payments other than salaries. This is applicable for TDS sections 200(3)/ 206C(3) of the IT Act.

 

4. How often should TDS returns be filed?

TDS returns need to be filed on a quarterly basis. The due dates are 31st July, 31st October, 31st January, and 31st May for the first, second, third, and fourth quarters respectively.

 

5. What if TDS is not deducted?

If TDS is not deducted, then the defaulter may have to pay a penalty which could be equal to the amount of TDS not deducted.

 

6. Can TDS be filed online?

Yes, TDS return can be filed online. It is easy and convenient. You can file TDS return through the tax filing websites or through the e-filing portal of the Income Tax Department.

 

7. What are the penalties for late filing of TDS returns?

If TDS returns are not filed within the due date, then a fee of Rs.200 per day is levied until the time the default continues. However, the total fee cannot be more than the TDS amount.

 

8. Can TDS be claimed?

Yes, TDS can be claimed. If the taxpayer has paid more tax than they are liable to, they can claim a TDS refund while filing their income tax returns.

 

9. What is the process of TDS refund?

The excess tax paid can be claimed as refund by filing your income tax returns. It will be credited to your bank account after the department’s verification process.

 

10. What are the documents required for TDS filing?

The documents required for TDS filing are PAN of the deductor and the deductees, TAN of the Deductor, challan details of TDS payment, and TDS certificate if any.

 

Understanding TDS and its filing process is essential for every taxpayer. This can help you not only in complying with the legal requirements but also in making an informed decision about your taxes.