What is TDS return? & How to file it online?

TDS AND TCS

TDS Return

As per income tax rules, You know that if you are covered and liable to deduct TDS on some payments such as salary, rent, commission, fees and etc. (full list) Then you are also liable to file a TDS return.

What do you mean by TDS return?

A TDS return is a statement of TDS deducted which is required to submit to the income tax department on a quarterly basis. As a deductor, you should mandatorily file the TDS Return.

if you understood the definition of a TDS return then you should know more about it such as the filing process, due dates, benefits, types, eligibility, and more.

So, In this post, you will feel good after knowing all about TDS return. Check out below-

How to file TDS return online for FY 23-24?

You will love to know a simple and quick easy way to file your TDS return online-

  1. First of all, visit the official income tax portal and TRACES.
  2. Then as a beginner, you have to register yourself with the help TAN number on the Incometax site and on TRACES.
  3. If you are already registered then login to the income tax portal with help of Tan number first.
  4. After login, just click on the e-File tab then Income tax forms then File income tax forms.
  5. Now scroll the page, and find the Deduction of tax at source (form TDS) option to file a TDS return.
  6. Now just click on the file now link.
  7. Now you need to read institutions carefully to understand the process of TDS return filing.
  8. Here are some documents required to help you file faster such as
    • NSDL return preparation utility (latest one)- FVU- You need to visit NSDL Site to download it.
    • Then run in your computer and make your file by filing TDS challan details of any quarter.
    • Now just validate the FVU file for making it error-free then create a path and download it.
    • After downloading, just convert it into a zip file.
  9. Because you have to upload only a zip file in FVU file format. So after making it. you need to visit again Income tax portal to upload it.
  10. On the income tax portal just select the form which you are going to file such as 24 Q, 26 Q, 27Q, and 27EQ.
  11. After selection, just upload your file while choosing your Financial Year, Quarter, and regular or revised.
  12. Now you need to click on proceed to verify it. So verify with OTP, DSC, and EVC.
  13. After verifying, your TDS return will be filed and will show in the 26 AS of the deductee.

What documents are required for filing TDS return?

Here is the list of documents, you should have at the time of filing the T.D.S return-

  1. You should have a TAN Number because without this you can not deduct TDS.
  2. Pan Number of the Deductee and Deductor both
  3. Paid TDS challan for TDS details such as
    • TDS amount,
    • date, and
    • challan number.

What are the due dates of the TDS return?

If you want to file your TDS return online then you should know the due dates of your T.D.S return such as-

For Financial years 22-23

QuarterPeriodLast Date of Filing TDS
1st1st April-30th June31st July 2022
2nd1st July-30th September31st Oct 2022
3rd1st October-31st December31st January 2023
4th1st January-31st March31st May 2023

For Financial years 23-24

QuarterPeriodLast Date of Filing TDS
1st1st April-30th June31st July 2023
2nd1st July-30th September31st Oct 2023
3rd1st October-31st December31st January 2024
4th1st January-31st March31st May 2024

What are the types of TDS return forms?

There are various forms available to file TDS returns. the table given below will be useful to understand the form name and details.

FormsDetails
27EQTCS
27QForeign companies, where the deductee is a non-resident
26QBFor the transfer of an immovable property
26QOther then salary
24QSalary

What are the benefits to file TDS return?

These are the benefits to file your TDS return on time-

  1. TDS allows regular income flow to the government for management.
  2. By filing TDS returns, You can ensure a reduction in lump-sum tax payments at year-end. This will, in turn, reduce a taxpayer’s burden.
  3. The Income Tax Department collects the TDS amount submitted by the deductor. This amount includes a portion of the deductee’s tax during submission. Therefore, by filing for TDS, one can avoid tax evasion.

Who is liable to file TDS return?

Organizations and Employers with a valid TAN are qualified for filing TDS returns. Individuals whose accounts are audited under Section 44AB, and who hold an office under the government or companies are liable to file online T.D.S return every quarter.

It means that the deductor can be –

  1. An individual,
  2. Group of individuals,
  3. HUFs,
  4. limited companies,
  5. local authorities,
  6. An association of individuals,
  7. partnership firms, etc.

Why TDS system introduced?

Actually, The concept of TDS was introduced with the aim to collect tax from the very source of income.

  1. First of all, As per this concept, a person (deductor) who is liable to make a payment of specified nature to any other person (deductee) shall deduct tax at the source.
  2. And then remit the same into the account of the Central Government.
  3. On the other hand, The deductee from whose income tax has been deducted at source would be entitled to get the credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

What are the rates of TDS deductions?

There are different types of rates charged for different categories. Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered. For rate, details check out TDS rates section-wise for the current F.Y. (updated).

How can I view my TDS tax credits?

There are many ways to know your TDS tax credits such as

  1. Online view through E-filing website-incometax.gov.in
  2. Online view through internet banking
  3. Through the status of the e-filing statement by your deductor
  4. Online view through TRACES.

Faqs on TDS return

1. if No TDS was deducted in any quarter, Then nil TDS return is required?

No, you need not file TDS return if you have not deducted any TDS in the quarter.

2. What do you have to do in case of an error in the TDS return file?

You will have to file a revised TDS return.

3. Which file format is required to file TDS return?

You need to upload a zip file converted through the FVU file.

4. What is TDS full form?

TDS stands for Tax Deducted at Source.

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