What is TDS Return?
TDS return can be best described as the quarterly statement or summary of all TDS-related transactions made during the specific quarter. Typically, it comprises details of the TDS collected and deposited to the Income Tax Authority by the deductor. The essential details disclosed in a TDS return statement include the following –
• Deductor and deductee’s PAN.
• Particulars of TDS paid
• Challan details
Notably, all details included in the online TDS return form are also disclosed in the payee’s Form 26AS. It is mandatory for all individuals who come under the purview of tax slabs prescribed by the IT department.
Typically, eligible individuals can file TDS returns through the IT department’s e-filing portal. In case one fails to file TDS returns within 1 year of filing from the due date, he/she must pay at least Rs.10000 as a penalty for delaying the process.
Similarly, the penalty has to be paid in case one furnishes incorrect information. Notably, Section 234 states that if a taxpayer fails to file TDS return within the due date, he/she must pay a penalty of Rs.200 each day until filed. Regardless, the total liability must not exceed the TDS amount at any given point in time.
Who is Eligible for TDS Return?
Employers and organisations with a valid TAN are qualified for filing TDS returns. Individuals whose accounts are audited under Section 44AB, and hold an office under the government or companies are liable to file online TDS returns every quarter.
It means that the deductor can be – an individual, group of individuals, HUFs, limited companies, local authorities, an association of individuals, partnership firms, etc.
As per ITA, TDS is filed against these following pay-outs -
• Salary income
• Income on securities
• Insurance commission
• Pay-outs towards NSC
• Earnings generated on winning horse race
• Earnings generated on winning a lottery, puzzles, etc.
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