TDS Returns

TDS Return Filing

TDS return filing is compulsory for all the assessees who fall under the tax slab as prescribed by the Income Tax Department. It is compulsory to e-file the TDS returns and it can be done through the official Income Tax e-filing portal.

It is mandatory that the TDS returns are submitted on time by the deductors. The filing of TDS returns can be completed online. Once the TDS returns have been submitted online, the details will come upon the payee’s Form 26AS. The various details that are required when filing TDS returns are mentioned below:
  • The deductee’s and deductor’s Permanent Account Number (PAN) details.
  • Information on the TDS challan
  • The amount of tax that was paid to the government.
  • Any other relevant information if needed.

How to file TDS Return Online?

    The step-by-step process to file TDS Returns online is mentioned below:

  • 1. First, Form 27A, which contains multiple columns, must be filled completely. In case the hard copy of the form is filled, it must be verified along with the e-TDS return that has been electronically filed.
  • 2. Next, the tax deducted at source and the total amount that has been paid must be correctly filled and should be tallied in their respective forms.
  • 3. The TAN of the organization that is filing the TDS returns must be mentioned on Form 27A. The verification process becomes difficult if the incorrect TAN is mentioned.
  • 4. The appropriate challan number, the mode of payment, and the tax details must be mentioned on the TDS returns. If there are any incorrect details mentioned in the date of payments or challan numbers, there will be a mismatch and the TDS returns might have to be filed again.
  • 5. The basic form that is used for filing e-TDS must be used as it would bring consistency. The 7-digit BSR must be entered so that the tallying becomes easy.
  • 6. Physical TDS returns must be submitted at the TIN-FC. The NSDL manages all TIN-FCs. In case returns are filed online, they can be submitted on the official website of the NSDL TIN. However, a level 2 digital signature must be used by the deductor in case TDS returns are filed online.
  • 7. In case all the information that has been provided is correct, a token number or provisional receipt will be received. This acknowledgment works as a confirmation that the TDS Returns have been filed. In case the TDS Returns are rejected, a non-acceptance memo along with the reasons for the rejection is issued. In such cases, the TDS Returns must be filed again.

Eligibility criteria for filing TDS Return

Organizations and employers who have a valid Tax Deduction and Collection Account Number (TAN) can file TDS returns. TDS must be filed for the below-mentioned payments that have been mentioned under the Income Tax Act:

  • Salary payment
  • Any gains that have been generated by winning puzzles, lotteries, and similar types of games.
  • Insurance commission
  • Any income that has been generated by Income on Securities.
  • Income that has been generated by winning horse races.
  • Payments that have been made towards National Savings Scheme and any other similar schemes.

Procedure for validation of TDS Returns

The procedure for the validation of the TDS Returns is mentioned below:

  • First, the relevant details must be mentioned in the file.
  • Once the details have been filled, it must be updated on the validation utility tool that is available on the portal.
  • The tool is available on the NSDL website and is available for free.
  • In case there are any errors in the file, the File Validation Utility (FVU) will report the error.
  • The required changes must be made on the file before sending it through the verification process again.

Revised TDS Return

In case there are any errors when filing the TDS returns such as incorrect PAN or challan details, the tax amount that was paid to the government will not come up on Form 16, Form 16A and Form 26AS. Under such circumstances, the TDS Returns must be filed again.

What are the prerequisites for filing revised TDS Returns?

The prerequisites for filing revised TDS Returns are mentioned below:

  • Filing of the revised TDS Return can only be done if the TIN central system accepts the original return.
  • The status of the return can be checked by providing the Provisional Receipt Number and the PAN details on the official website of the NSDL.
  • The preparation of the revised TDS Return must be done using the latest TDS statement. The consolidated statement can be downloaded from the TRACES website. However, the token or provisional receipt number of the original returns must be entered to download the latest statement.