TDS Return

TDS Return stands for Tax Deducted at Source that means of collecting income tax in India, under the Indian Income Tax Act of 1961. Any company or person making a payment is required to deduct tax at source if the payment above the certain threshold limits. TDS Return has to be deducted at the rates fixed by the tax department. TDS Return is also known as Advance Tax.

Who is Deductor?

Deductor is a company or person that makes the payment after deducting TDS

Who is Deductee?

Deductee is a Company or person receiving the payment

What is TDS Return?

A Deductor has to deposit the TDS to the government and to be filed in the form of a TDS return. The particular nature of TDS deductions has to be filed using different TDS return forms. TDS filed a quarterly basis.

TDS Return is deducted on the following nature of payments:

• Contractor.

• Salaries.

• Interest payments by banks.

• Commission payments.

• Rent payments.

• Consultation Fees.

• Professional Fees.

The due date for depositing the TDS Return

TDS Return is to be deposited to the Government by the 7th of the month succeeding the tax period.

TDS Return Certificate

Types of forms:

1. Form 16,

2. Form 16A,

3. Form 16 B, and

4. Form 16 C

TDS certificates have to be compelled to be issued by someone deducting TDS Return to the assesses from whose financial gain TDS Return was subtracted whereas creating a payment.

Form 16 is issued by the employer to the employee.

Form Certificate ofconstancy Due date Form 16TDS on salary paymentYearly31st May Form 16 ATDS on non-salary paymentsQuarterly15 days from the due date of filing return Form 16 BTDS on sale of property Every transaction15 days from the due date of filing return Form 16 CTDS on rent Every transaction15 days from the due date of filing return

Under Section 234 E, you’ll pay a fine of Rs. 200/- per day till your TDS Return is filed. You have to pay this for every day of delay until the fine amount is equal to the amount you are supposed to pay as TDS.

The penalty for late filing of TDS Return:

If the taxpayer above a one-year time limit to file the TDS return or furnishes the wrong details of PAN No. , TDS amount, he/she will need to pay a penalty of maximum Rs. 10,000 to Rs. 1 lakh.