TDS Return Filing
Tax Deducted at Source (TDS) is a mechanism to collect tax from the source of income. The person making specified payments (like salary, rent, or professional fees) must deduct a certain percentage of tax before paying the recipient. This deducted tax must be deposited with the government. The deductor is required to file a quarterly TDS return.
Why is TDS Filing Necessary?
- It prevents tax evasion by collecting tax at the source.
- The recipient (deductee) can claim credit for the deducted amount against their final tax liability.
- It serves as proof that the deductor has complied with tax laws.
Penalties for Non-Compliance:
- Late Filing Fee (Section 234E): A penalty of ₹200 per day of delay.
- Penalty for Non-filing (Section 271H): A penalty ranging from ₹10,000 to ₹1 lakh.
- Interest on Non-payment (Section 201A): Interest is levied at 1.5% per month if TDS is deducted but not deposited on time.
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What is TDS?
TDS (Tax Deducted at Source) is a system where the person making a payment (like salary, rent, or professional fees) deducts a certain percentage as tax before paying the recipient.
Who needs to file a TDS return?
Any business or individual who has a TAN (Tax Deduction Account Number) and has deducted TDS is required to deposit the tax with the government and file a quarterly TDS return.
What is the frequency of TDS returns?
TDS returns are filed quarterly (every three months). The forms are typically 24Q for salaries and 26Q for other payments like rent, commission, etc.
What is a TDS Certificate (Form 16 / 16A)?What is a TDS Certificate (Form 16 / 16A)?
After filing the return, the deductor must provide a TDS certificate (Form 16 for salary, Form 16A for other payments) to the person whose tax was deducted. This acts as proof of tax payment.