Step by step procedure of filing TDS Return

Posted by Reena More on June 27th, 2019

TDS or Tax Deducted at Source, is a source of collecting tax by Government of India at the time of the transaction from payments of various kinds such as salary, contract payment, commission etc., which can eventually be adjusted against the tax due of the deductee. In other words, to reduce tax evasion, some portion of your tax is automatically paid to the Income Tax department through TDS (usually between 1% to 10%).

As per Section 206 of the Income Tax Act, online filing of quarterly results is mandatory under the following circumstances:

➔     If the deductor/collector is a government office

➔     If the deductor/collector is a private company or corporate

➔     If the deductor/collector is a person whose accounts should be audited under section 44AB

➔     If the number of deductees ( people paying the TDS ) on record during a specific quarter are 20 or more

➔     All other types of people/entities can either choose to file online or over the counter.

Additionally, the aforementioned is applicable to you, if you’ve made Payment of Salaries, Payment of Fees / Commission; Income on Securities; Income by winning the lottery, puzzles, horse races, etc.; Insurance Commission; Payment of National Saving Scheme; or any the payments stated by the Income Tax Act

Who is required to issue TDS certificates?

As per provisions of Section 203 of the Income Tax Act, every person who deducts tax is required to issue a TDS certificate to the payee along with other particulars. Banks are also liable to issue TDS certificates TDS is deducted on pensions.

Types of TDS certificates to be issued in different cases:

  1. TDS Certificates issued when paying Salaries. This will be issued in Form 16 containing details of TDS Payment, and tax calculation based on which TDS was estimated.
  2. TDS Certificates issued for all Non-Salary Payments. This will be issued in Form 16A that will contain all the details of the payment and tax deducted at source.

How can you File TDS Returns?


As per the Income Tax Laws, filing your TDS Returns is a compulsory activity, and that too before the due date. If you file it later you will be charged with penalties and fees. The due date for payment of TDS through challan is the 7th of the subsequent month, and the due date of submission of quarterly TDS Returns is the 31st of every Quarter i.e. 31st of October, 31st of July, 31st October, 31st January, and 31st May.

TDS returns have to be filed by the collector who has deducted the taxes at the source. This needs to done on a quarterly basis by producing details such as deduction amount, PAN, payment type, TAN, etc., and the TDS statements. These details need to be attached and submitted along with the TDS Form. There are different kinds of TDS Returns forms available. You need to choose the one that fits the category that you fall in and submit the same. Here’s a list of forms that are available:

➔     Form 24Q is used to file for TDS returns on all the statements for salaries

➔     Form 26Q is used to file for TDS returns on all payments except salaries

➔     Form 26QB is used to file for TDS returns on payments for transfer of immovable property

➔     Form 27Q is used to file for TDS returns for all the Tax collected from dividend/interest paid to non-resident Indians ( NRIs )

➔     Form 27EQ is used to file for TDS returns on all the collection of taxes at source

Essential, there are two ways you can file your TDS returns: 

Online Process:

➔     Visit the Tax Information Network’s website ( )

➔     Click on e-TDS/TCS, under “services”, on the navigation tab
Select “ e-TDS/e-TCS RPU ” on the left tray

➔     RPU ( Return Preparation Utility ) is a resource that can be used for free and is available to be downloaded from the website itself.

➔     Follow the instructions and provide the required information as per the TDS type

➔     Verify all the information by providing your digital signature

➔     Make sure to file your TDS Returns before the due dates to avoid penalty

Offline Process:

The other way to file the TDS return is to submit the TDS statements and supporting paperwork at any given Facilitation Centers of TIN ( Tax Information Network ). These FCs are available at all prominent cities and towns at across most of the states in the country. Here’s how you can find the details on the website.

➔     Visit the Tax Information Network’s website ( )

➔     Click on " Facilitation Center " on the navigation bar

➔     Click on the button that says " Search TIN FC "

➔     Select the " State " and " City "

➔     The list of Facilitation Centers will be available

➔     You can visit during the business hours to submit the details

After submitting the details you will be issued a provisional receipt as an acknowledgment for the TDS/TCS returns filed by the representative. However, if your TDS Returns form has been rejected, you will receive a memo with the reason for non-acceptance / rejection.

These are some points to remember to ensure an error-free TDS returns filing process

➔     Fill all the columns you find on the control chart of Form 27A

➔     Make sure that the totals of the " amount paid ", and the " tax deducted at source " are accurate and matching in all the forms

➔     Don’t forget to mention the Tax Deduction Account Number (TAN) in Form No. 27A

➔     E-TDS return has to be filed in the ASCII clean text format. Software such as Computex, MS Excel or Tally - offer this format. You can also use the software available at NSDL website known as " Return Prepare Utility (e-TDS RPU Light) " for filing your returns online

➔     Please make sure that the online TDS file formats come with ‘txt’ as the filename extension

If you fail to file your TDS Return before the given due date, then according to Section234E, you will be charged with a penalty of ₹. 200 per day until the time the default continues. And if you fail to file the TDS returns within 1 year from the due date then you will be liable to pay a penalty fee of anything between ₹. 10,000 and not more than ₹. 1,00,000.

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Reena More

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Reena More
Joined: April 9th, 2018
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