Registration Form

Why do i need Tax Deduction and Sourcing ?

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department. The company or person that makes the payment after deducting TDS is called a deductor and the company or person receiving the payment is called the deductee. It is the deductor’s responsibility to deduct TDS before making the payment and deposit the same with the government. TDS is deducted irrespective of the mode of payment–cash, cheque or credit–and is linked to the PAN of the deductor and deducted.

Online TDS Return Filing

  1. The format of the file or the data structure in which e-TDS or eTCS return must be prepared.
  2. Once that is done, the e-filing of TDS return is made according to the formats in a clean text ASCII format with the file extension of “txt”. e-TCS or e-TDS return filing should be or can be prepared with the help of using return preparation utility provided by either the NSDL or by means of any other third party software.
  3. Once your file is prepared, as per how the file format should be it’s time to verify it by using file validation utility or FVU which is also provided by NSDL.
  4. Just in case the file has got any errors, the FVU will then give a report of those errors. You can rectify those errors and then verify the file again via FVU.
  5. The generated “.fvu”, this file then can be submitted to TIN-FC and then uploaded to the government income tax e-filing website.

Documents Required for filing e-TDS Return

  1. TAN details
  2. PAN details
  3. Last TDS filing details, if applicable
  4. The period for which TDS has to be filed
  5. Date of incorporation of the business
  6. No. of transactions for filing TDS returns
  7. Name of the entity - Proprietorship/ Partnership/ Company/ LLP

Types of TDS Return Forms

Step 1

TDS Return Form 24Q
Form 24Q is filed in case TDS is being deducted from salary. An employer files it. TDS return form 24q contains the detail information of salary paid and credited to the account of the employee along with the TDS deducted and payment details of the same.

Step 2

TDS Return Form 26QB
On payment being made for the transfer of immovable property, if tds is being deducted Form 26 Q is filed in that case.

Step 3

TDS Return Form 27Q
If a payment to non-resident required TDS deduction. In this case, TDS filing is done through form 26QB.

Step 4

TDS Return Form 26Q
TDS return form 26Q is filed for any other case like interest payment, commission payment, professional fees payment, contractual payment etc.

Frequently Ask Questions

Different types of TDS forms are as follows :-
Form 24Q -TDS on Salaries
Form 26Q – TDS on payments other than Salaries
Form 27Q – TDS on payments made to Non-Residents
Form 27EQ – TCS

When your employer deducts tds as applicable on your salary, Employer file tds form 24q and issue tds certificate to the employee. At the time of filing an income tax return, the employee can claim the portion of tds deducted by the employer.

Following are the basic duties of any individual who is liable to deduct tax at source. • He shall obtain Tax Deduction Account Number and quote the same in all the documents pertaining to TDS. • He shall deduct the tax at source at the applicable rate. • He shall pay the tax deducted by him at the source to the credit of the Government (by the due date specified in this regard*). • He shall file the periodic TDS statements, i.e., TDS return (by the due date specified in this regard*). • He shall issue the TDS certificate to the payee in respect of tax deducted by him (by the due date specified in this regard*). *Refer tax calendar for the due dates.