TDS RETURN FILING

TDS is an acronym used for Tax Deducted at Source. TDS is basically an indirect system for deduction of tax. TDS was introduced under the Income Tax Act of 1961 where the tax is deducted at the point of generation of income. Tax is deducted by the payer(employer) and the payer also has to remit to the government on behalf of the payee.

A TDS Return is a statement which is supposed to be submitted quarterly to the Income Tax Department of India. TDS Return has to be mandatorily submitted if you are a deductor, this document consists of details regarding the TDS deducted and deposited by the payer.

Who can file TDS?

TDS has to be filed by the payer. Payer is the person who is making payment to his employees or anyone for services or any specified goods to deduct TDS and file TDS returns. Deductor is the person who deducts TDS and deductee the person whose taxes are being deducted.

What is TAN?

TAN is an 10 digit alphanumeric number required by a person who deducts TDS and files TDS returns. Hence, this person should file an application within a month of deducting TDS for getting a Tax Deduction and Collection Number (TAN) in Form 49B. TAN number should be mentioned in all TDS Certificates issued, returns, chalans etc. If a deductor does not apply for TAN within a month of deducting TDS then he will be penalized up to 10,000/-Rs.

The 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