TDS: Quarterly Returns

What is TDS?

TDS or tax deducted at source is a kind of advance tax that is deducted from the earnings of a person or organisation before crediting the amount to the person or organisation. This deduction is done by the employer or payer itself. It is applicable on regular income as well as occasional or irregular income.

Advantages of TDS

Tax deducted at source has several advantages:

• Deducting tax at the source helps avoid tax evasion.
• It ensures that taxes are collected in a timely manner. 
• It manages to bring a large amount of taxpayers under the tax umbrella effectively.

It is to be noted that liability to pay TDS only arises when an individual or organization has earnings. 

What is TDS return

TDS returns are a summary of all tax deducted at source transactions that a deductor (The employer or payer) is required to submit to the Income Tax Department. This summary is to be submitted every quarter. TDS return includes the information regarding all the TDS that has been collected by the deductor as well as the information regarding the TDS that the deductor themself has paid to the Income Tax Authority.

TDS Return Forms

There are various different types of forms to be submitted depending on the type of income of the deductee or the type of deductee paying a TDS

• Form 24Q for tax deducted from salaries 
• Form 26Q for tax deducted on all payments other than salaries
• Form 27Q for tax deducted on income that’s received from dividends, interest, or any sum that was payable to a non-resident
• Form 27EQ for all the details of tax collected at the source

How to file Quarterly TDS Returns?

Earlier TDS returns could only be filed physically, now they can also be easily filed online on tin-nsdl.com as well. This portal lets you download the forms, fill them out, and file them on the portal itself. 

Please keep in mind that in case you’re filing online for an organization, you must be a director or partner in the organization, and you will be required to verify the information provided via a digital signature.

How to Download e-TDS Return forms?

Downloading e-TDS forms involves five simple steps:

1. The first step is to go to the official website of NSDL
2. click on the ‘Downloads’ tab on the website and click on ‘ 
3. Choose ‘E-TDS/E-TCS’ from the drop-down menu that appears.
4. Click on the ‘Quarterly Return’ option and pick ‘Regular’.
5. This will take you to a new page where you can download the apt return forms.

Due-Dates

There are four financial quarters in a year, and each of them has its own due date:

Quarter	Time Period	Due Date
First quarter	1st April to 30th June	31st July
Second quarter	1st July to 30th September	31st October
Third quarter	1st October to 31st December	31st January
Fourth quarter	1st January to 31st March	31st May

Penalty for Late or non-filing

Non-filing or late filing of returns can lead to hefty penalties. The penalty is calculated as Rs. 200 per day of delay until the amount reaches the payable tax amount. For example, if your TDS amount is Rs. 1 Lakh, you can be charged a penalty of up to Rs. 1 Lakh. Additionally, the TDS assessing officer can also levy a penalty ranging from Rs.10,000, going up to Rs. 1,00,000.

Hence, it is recommended to file your returns on time. While it is possible to file the returns by yourself, asking the help of accounting experts, such as those at LegalWiz.in, is the best way to ensure timely and proper filing. 

Frequently Asked Questions

1. Who needs to file e-TDS return?
   e-TDS return filing is mandatory for all government and corporate deductors, i.e they are mandatorily required to file returns online. Individuals are allowed to file the returns offline as well.
2. Are the online and the offline TDS return forms the same?
   Yes, the forms for offline and online filing are the same.However, online forms have to be filled and submitted in the specific file format given by the Income Tax Department. 
3. Am I required to provide my Tax Deduction Account Number (TAN) while filing my e-TDS return?
   Yes, while filing an e-TDS return, you have to mandatorily mention your TAN.
4. Is the procedure for filing e-TDS return different from e-TCS return?
   No, the procedure for both is the same, however, the forms required are different.