Overview of TDS Return Filing

TDS stands for Tax deducted at Source; it is a kind of Income Tax that is removed from the payments that are made in commission, rent, salary, and other fees by the person who is making such payments. The Tax must be given by the person receiving such payments or income. That is being made through the help of Tax deducted at source provisions; the government removes the income tax in advance, and the income received by the receiver is the amount after the deduction of the TDS. The receiver gets the gross amount of the revenue, and the TDS deducted from the payment gets adjusted to their tax liability. In this write-up, we will know the requirements, characteristics, types, and advantages, along with the documents and process of the TDS Return filing.

Requirements of TDS Return Filing

TDS Return Filing is required to be filed by any person/individual who is making payments that are specified and falls in the criteria mentioned under the Income Tax Act. Except for a person making payment as an individual or HUF, the tax deductions are not required to be made or audited. But in the case of rent by an individual or HUF that exceeds Rs 50,000 per month, then the TDS will be deducted at the rate of five percent. The employer deducts income tax as per the applicable slab rates, and the bank deducts a TDS at the rate of 10% and 20% if there is no PAN information available. The structure of the TDS is deducted as per the specified rates. If the total income of an individual is below the taxable limit, then forms 15 G and 15 H are required to be submitted to the bank, based on which TDS will not be deducted.

Characteristics of TDS Return

TDS Return Filing is done based on TDS Deduction at the time of payment from different sources from which the incomes are received. In this section, we will talk about the characteristics of the TDS Return as follows:

1. The TDS return is the responsibility of the individual paying to deduct the money at the Source, as its name suggests.


2. The persons who are responsible for deducting the TDS are required to have a tax deduction account number.


3. Non-payment of TDS or non-compliance to the terms of the Income Tax Act can lead to penalties imposed by the tax authority.


4. Specific forms must be submitted for filing the TDS return within the specified time.


5. Tax must be deducted and collected as per the rates mentioned by the tax authority.


6. The deductors are required to file quarterly statements of the TDS return for the TDS deduction that has been made.

Types of TDS Return Filing

Several types of TDS return filing are made, as follows

Form 24Q

• Form 24Q is used for TDS return deducted on salary as per section 192 of the Income Tax Act 1961. It is submitted every quarter and contains the details about the compensation and the TDS amount deducted, and includes two annexures.


• Annexure I contains the details of the Tax deducted from the deductors and all the challan; Annexure 1 must be submitted for all four quarters.


• Annexure II contains the salary details that must be submitted in the last quarter. It includes the details of the salary of the deductee for the respective financial year.

Form 26Q

• Form 26Q is used for payments other than salary, and it falls under sections 200 (3), 193, and 194 of the Income Tax Act 1961


• This form must be submitted every quarter by the deductor and must be used in case of Tax deducted on dividends, securities, or even professional fees. If a non-government deducts the TDS, then the PAN must be provided essentially, and if a government detector deducts the TDS, then PAN is not required, but it must be mentioned on the form "PANNOTREQD."

Form 27Q

• Form 27Q is required to file E-TDS by NRI or foreigners apart from salary, and it falls under section 200 (3) of the Income Tax Act 1961. It must be filed by the deductor every quarter; if a non-government deducts the TDS, then the PAN must be provided essentially, and if a government detector deducts the TDS, then PAN is not required. Still, it must be mentioned on the form "PANNOTREQD."

Form 27EQ

• Form 27EQ is about the quarterly statements for the Tax collected at Source; it falls under section 206 C of the Income Tax Act 1961 and must be submitted every quarter by the seller along with the TAN. This Tax can be collected in any form of payment, including credit. If a non-government deducts the TDS, then the PAN must be provided essentially, and if a government detector deducts the TDS, then PAN is not required, but it must be mentioned on the form "PANNOTREQD."

Advantages Of TDS Return Filing

The deduction reflected in the TDS Return Filing depends upon how much an individual is earning. The benefits of TDS return filing are stated as follows:

• It helps government agencies to prevent people from tax evasion by keeping track of the TDS Return Filing and by imposing a penalty in case the TDS is not filed within the due date specified


• TDS provides the government with a steady source of revenue, and therefore, the government keeps track of such persons who file TDS regularly.


• If the employer of a person files the TDS, then the certificate of the same is provided to the employee, and in such case, there is a lesser chance of tax evasion.


• The tax collection agency must keep an eye on the earning person coming under the TAX paying slab, and they ensure that the TDS is filed duly by them.


• It is essential to know that the TDS return is filed by the deductor based upon the income that the deductee makes, and in such a way, the TDS again the job is served when the deductor has deducted the TDS amount.

Documents required for TDS Return Filing

The documents that are required for a TDS Return Filing are as follows:

1. The tax collection and deduction account number along with the PAN of the taxpayer.


2. The incorporation date of the business.


3. Details regarding the last TDS that was filed.


4. The term for which the TDS must be filed.


5. Salary slips and Form 16 that the employer has given.


6. The passbook and bank details.


7. The income statement that has been received.


8. The TDS Certificate.


9. Sale and purchase deeds of properties


10. Expense that has been acquired.


11. Any section 80 Investments made under NSC, ULIP, LIC, PPF.


12. House property details include the address, the property tax, and the rent.


13. Investment that has been made.


14. Tuition fee receipt, donation receipt, fixed deposit receipt, medical insurance receipt, etc


15. Miscellaneous documents include dividends, interest certificates, rent agreements, revenue from horse races or lottery winnings, etc.

Process of TDS Return filing

The process of a TDS return filing is given as follows:

1. The first step is to prepare the TDS Return Filing as per the form prescribed by the Income-tax authority.


2. The next step is the submission of the form along with the documents that are mentioned under the documents section at the nearest TDS Return Filing center.


3. The third step is verifying the application and the documents, which the tax authority will do. In case of any discrepancy, they will reject the form and the reason for the rejection.


4. The fourth step is receiving acknowledgment after the applicant corrects all the issues with the application

Why Adviso?

TDS Return involves many requirements, document preparation, and pre- and post-compliance obligations. It is essential to comply with the specific terms of the TDS Return. The incorporation of a TDS Return can be a tedious process without professional support. That's where Adviso comes in. At Adviso, we provide expert services for online return filing on the Income Tax website. Our Lawyers, CA, and CS experts guide you through every step of the journey to ensure your company lists smoothly and efficiently. With Adviso's expertise and assistance, you can easily navigate the complexities of TDS Return, saving time and ensuring compliance with all necessary regulations.