TDS Return Filing with Canjain 

The acronym TDS stands for Tax Deducted at Source. It is the tax levied by the government when a transaction occurs. The tax amount is deducted either when the money is put into the payee’s account or when the payment is made, whichever occurs first.

The primary goal of TDS is to collect taxes from all sources of income. According to the Income Tax Act of 1961 rules, a tax deductor must provide a quarterly TDS statement (Quarterly) comprising the details of tax deductions made during the quarter by the specified due date. The rate of TDS deducted is decided by the Department of Income Tax. It is the Deductor’s obligation to deduct TDS before making the payment and depositing it with the Government.

The entity/individual who is responsible for deducting a particular amount is known as the Deductor and the entity/individual from whom the tax is deducted is referred to as the Deductee. There are also several types of payments for individuals and businesses.

What is TDS Return Filing?

The easiest way to describe TDS returns is as a quarterly statement or summary of every transaction pertaining to TDS that took place within the designated quarter. It usually contains details on the TDS that were gathered and filed by the deductor with the Income Tax Authority. The important details given in a TDS return filing statement are the following:

• The PANs of the deductor and deductee.
• Details of TDS paid, including Challan.

Notably, every information contained in the online income tax return form is likewise provided on the payee’s Form 26AS. It is required for all persons who fall under the tax brackets established by the IT department.

Generally, qualified persons can submit TDS returns using the IT department’s e-filing system. A taxpayer is required to pay a penalty of at least Rs. 10,000 for the delay if they do not file TDS returns within a year of the deadline.

Similarly, giving false information results in fines that need to be paid. Notably, Section 234 mandates that a taxpayer pay a penalty of Rs. 200 per day till the return is filed if they fail to file a TDS return by the deadline. In any case, the total liability can never go over the TDS amount.

What is TDS Return Filing?

Apart from submitting the tax, the deductor is also required to file the TDS returns. TDS return filing is a quarterly statement that must be submitted to the Income Tax department. It is vital to file TDS returns on time. TDS return filing can be done fully online. Once the TDS returns are submitted, the information will appear on Form 26 AS.

What is TAN?

TAN, or Tax Deduction and Collection Number, is an obligatory 10-digit alpha number that must be obtained by anybody responsible for collecting tax at the source or deducting the same on behalf of the government. Salaried persons are not required to get a TAN or deduct the tax at source.

In the case of proprietorships, enterprises and other organizations are required to deduct tax at the source when making specified payments such as salaries, contractor payments, and rent payments of more than Rs.2,40,000 per year.

Entities with a valid TAN registration must file their TDS reports quarterly after TDS return filing. Our TDS specialists can assist you in computing the TDS payments and filing the TDS forms in accordance with TDS requirements.