Basic Understanding of Tax Deducted at Source (TDS)

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Deducted at Source (TDS) has been adopted with the purpose of collecting tax from the source of earning of assesse. According to this concept, an individual (deductor) who is liable to make payment of specified nature to some other person (deductee) shall deduct tax at source and remit the same tax to the Central Government.

TDS has been introduced to collect taxes from the source of earning. As per the Income Tax Act, while someone making a payment is required to deduct tax if payment excessed such levels/limit as specified. Limits or rate of TDS is prescribed by the Tax Department. The TDS is administered by the CBDT, which is come in the preview of the Ministry of finance.

TDS is a Kind of advance tax that must be deducted regardless of the method of payment. Because Tax Deducted at Source is a part of the Income Tax Act, both the Deductee and Deductor the person permanent account number (PAN) are linked to it. In such a case the PAN of the deductee is not uploaded, the Deductor Tax Deducted at Source shall deduct at a rate greater than the following:

  • at the rate prescribed in the Finance Act;
  • at 20%.
  • the rate prescribed in the income tax Act;

Tax Deducted at Source (TDS) IS APPLICABLE:

Below are expenditure & source of income falls under TDS-

  • Technical or consultancy fees.
  • Transfer of any immovable property other than agricultural land;
  • Salary Payment ;
  • Contractor payments
  • Payment of Brokerage or commission
  • Transfer of immovable property
  • Compensation on acquiring immovable property
  • Payment of interest by banks.
  • Charge to the contractor/sub-contractor for the success of the work;
  • Rent payment
  • Payments to freelancers and lawyers
  • Lottery etc
  • Insurance Commission
  • LIC maturity amount
  • Interest-free
  • The rise in demand (for TDS)
  • Penalty tax

Tax Deducted at Source (TDS) IS NOT APPLICABLE :

In the following circumstances, TDS is not applicable as per the income tax Act:

  • Where the person has a holder of a certificate of non-deduction u/s 192 of the Income Tax Act.
  • When the sum is paid towards the State Government or Center and RBI.
  • Payment made towards mutual funds specified U/s 10 (23D) income tax Act.
  • Whenever a payment is made to Central Financial Corporations or State Financial Corporations.
  • Interests paid or credited towards :
  • National Savings Certificate
  • Kisan Vikas Patra issued by the Government of India.
  • Non-Resident External Account
  • Banking Co-operative society as per defined under the income tax act
  • Recurring deposits or Savings account of banks & Co-operative society
  • Banking Company or Bank defined as per banking regulation
  • Trust Unit of the Indian or any other insurance company;
  • Notified body for non-deduction of tax

Benefit of TDS

  • It expands the tax collection framework.
  • This is a platform to transfer the accountability for the collection of taxes between the government and the deductors.
  • It helps to stop tax evasion.
  • As TDS deductions take place all throughout the financial year, this is an efficient method of revenue inflows to the government.

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Tax Deducted at Source Payment Due Dates

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Month-wise TDS due date is as follows:

Month Due date
April On or before the Seventh of May
May On or before the Seventh of June
June On or before the Seventh of July
July On or before Seventh August
Aug On or before Seventh September
Sept On or before Seventh October
Oct On or before the Seventh November
Nov On or before the Seventh December
Dec On or before Seventh January
Jan On or before Seventh February
Feb On or before the Seventh March
Mar
  • On or before Seventh April for government deductors
  • On or before Seventh April for non-government deductors

Normal Tax Deducted at Source Return Filing Due Dates

The Dead Line of Quarterly filing of Tax Deducted at Source Returns are as below:

Quarter Period Quarter Due date to file TDS return
April to June 1st Quarter On 31st July of the same FY
July to September 2nd Quarter On 31st Oct of the same FY
October to December 3rd Quarter On 31st Jan of the same FY
January to March 4th Quarter On 31st May of the next FY

https://carajput.com/blog/warning-due-dates-are-closer-than-they-appear/

The government made the New Deadline for TDS Returns Filing for the FY 2020-21

Quarter Quarter Period Quarter Ending Due Date
First Quarter April 2020 – June 2020 30 June 2020 31 March 2021
Second Quarter July 2020 – September 2020 30 September 2020 31 March 2021
Third Quarter October 2020 – December 2020 31 December 2020 31 January 2021
Fourth  Quarter January 2020 – March 2020 31 March 2020 31 May 2021

How do I deposit TDS?

TDS must be deposited on the government portal using Challan ITNS-281.

What’s a TDS certificate?

Form 16, Form 16A, Form 16 B, Form 16 C are all TDS certificates. TDS certificates must be issued by an individual who deducts TDS from an assessee whose TDS income was deducted at the time of payment.

For example, banks issue Form 16A to the depositor when TDS is deducted from interest on fixed deposits. Form 16 shall be given to the employee by the employer.

Frequency of TDS certificate Form Type Certificate issued for Dead Line
Yearly Form 16 TDS on salary payment 31st May
Quarterly Form 16 A TDS on non-salary payments 15 days from due date of filing return
Every transaction Form 16 B TDS on sale of property 15 days from due date of filing return
Every transaction Form 16 C TDS on rent 15 days from due date of filing return

Key Point to be remembered while deducting TDS

  • According to Sections 192 to 194L of the Income Tax Act provide a complete list of Tax Deducted at Source expenditures and sources of income.
  • If the person does not fall within the scope of the income tax slab, he or she may apply Form 15G or Form 15H to the deductor in advance for non-deduction of tax at source.
  • The Tax Deducted at Source refers to each kind of income that reaches a certain threshold.
  • TDS shall be deducted as per the rate of income tax imposed on employees.
  • For many other deductees, the Tax Deducted at Source shall be deducted at the specified percentage at each type of income.
  • Form 15H is intended for senior citizens.
  • Form 15G is intended for all other persons.

Points to be understood for TDS  

  • Any person who deducts TDS must have a TAN as provided for in Section 203 A of the Income Tax Act 1961.
  • Tax Deduction and Collection Account Number is a required condition for TDS returns to be filed. In addition, it should be included in the tax deduction certificate issued.
  • Deductions for TDS are connected to your Permanent Account Number. It is, therefore, necessary to have Permanent Account Number information of the deductee in order to deduct tax at source.
  • Any deductee must request a Tax Deducted at Source certificate to change the amount of tax deducted against the total amount of tax payable.
  • Tax Deducted at Source information can be reviewed using the Tax Credit Form 26AS, which is open to all PAN holders.
  • This consolidated tax statement gives you specific details of the Tax Deducted at Source withheld for the different forms of payments.

SMS Warnings on Greater Transparency

The revenue tax department has sent a text message to the taxpayer from VK-ITDEFL indicating the amount of tax deducted at source (TDS) against the taxpayer’s PAN (Permanent Account Number). The SMS warning will remind you of the TDS credited on your salary, interest, etc. earnings, per quarter. The sum of TDS will be accrued in your Form 26AS for the various financial year.

This program was initiated by the Ministry of Finance to improve transparency and reduce cases of TDS inconsistencies at the time of income tax filing. Taxpayers should cross-check the details given in the SMS with the payment slip information to ensure that there is no discrepancy. TDS mismatch may be a common explanation for incorrect filing of income tax returns.

Decrease in TDS rates i.e. 25% TDS cut to benefit individuals – Effects and results

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As part of a Special and Detailed Economic Package of COVID-19 Pandemic – Aatmanirbhar Bharat Abhiyaan, the following steps have been taken with regard to TDS and TCS: W.e.f. Fourteen May 2020, the Government has decreased the rate of TDS, dividends, professional fees, rent payments and other non-salary payments (TDS) and the rate of tax collection (TCS) by 25%. These rates shall be effective from 14 May 2020 and shall remain effective until the end of the financial year, i.e. March 2021, please. This action taken by the government would certainly increase the liquidity in the hands of a person who is already struggling with the financial distress caused by this pandemic. Deduction and collection of tax at a lower rate would leave further discretionary income in the hands of the recipient and would have the desired impact of increased cash flows and liquidity in the market. The effect and benefits of the reduction of TDS rates can be understood as follows:

  • NO subsequent reduction of the tax liability:- TDS rates for non-salary payments rendered to residents and TCS rates for defined receipts have been decreased by 25% of current rates.
  • The new rates would only apply to payments other than wages, such as contract payment, professional fees, rent, interest, dividend, commission, brokerage, etc.
  • The TDS, TCS cut does not minimize the tax burden of taxpayers but allows more money in their pockets.
  • Better management of the Fund:
  • Benefits for a particular section of taxpayers:
  • No TDS relief for expenditure booked before 14 May 2020:, The reduced rates will apply to the remaining portion of the 2020-21 fiscal year, i.e. from 14 May 2020 to 31 March 2021.
  • Lower Operational TDS and TCS rates would also benefit those who usually earn tax refunds.
  • Higher prices for non-furnishing of PAN:
  • The step is anticipated to occur in a liquidity increase of Rs. 50,000 crore.

Fines/ Penalties associated with the TDS

The deductor shall be liable for the fine if the TDS deduction and payment deadlines are violated.

  • Non-deduction of the Tax Deducted at Source(TDS) : In case the deductor/collector fails to collect the tax at source, all these expenses may be disallowed from the assessment of the overall revenue by the tax assessor.
  • For the late deduction of the Tax Deducted at Source(TDS): In case the tax at source is deducted within a day or a few days after payment of the profits, simple interest at a rate of One % per month will be charged on the balance of the tax deducted at source.
  • For late payment of the Tax Deducted at Source(TDS): As mentioned above, there is a monthly due date for the TDS to be deposited with the Government. If the deductor fails to do so it must pay simple interest on the amount deducted as tax at a rate of 1.5 percent per month.
  • For late-filing of Tax Deducted at Source(TDS) Returns: In case of deductor fails to furnish the TDS return on or before the specified due date, he shall be liable to pay a penalty of INR 200 per day till the date of default. Please note that the total amount of such penalty cannot exceed the total amount of tax deducted at the source.
  • For non-filing of Tax Deducted at Source(TDS)Returns: in case deductor fails to file TDS return within the due date, then the assessing officer may charge a penalty ranging from INR 10K to 100k.

In the circumstance of a deduction loss at source, the payer would have to relieve his tax liability. To find the total quantum, search Form 26AS from your e-filing account. This is a very well method of tax collection by the Indian government. To learn more about the current assessment year, free to contact us.

Related Articles/pieces of information

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

New Revise TDS / TCS return filing due date & Payment due date for 2020

New Revise TDS / TCS return filing due date & Payment due date for 2020 as per the Taxation and Other Regulations (Relaxation of Some Provisions) Order, 2020.

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The deadlines for specific GST and Income Tax legislation have been expanded by the Minister of Finance. Pandemic COVID-19 has forced a lockout in India. There are many challenges for businesses and professionals during this period, including different compliances under tax legislation.

Various reliefs are provided with respect to the submission of the TDS / TCS declaration and the issue of the certificate in the “Taxation and Other Laws (Relaxation of Other Provisions) Order 2020” for the quarter ended 31.03.2020.

LATEST CURRENT UPDATE: the deadline date of the Tax return under I T Act 1961 filing for FY 2019-20 (AY 2020-21) is increased to 10th Jan 2021. For Income tax audit & Transfer pricing Audit, the deadline is 15th Feb 2021.

ITR filing deadline for the FY 2019-20

Taxpayer Type Deadline for Income tyax Tax Filing – FY 2019-20
Individual 10th Jan 2021
BOI 10th Jan 2021
HUF 10th Jan 2021
AOP 10th Jan 2021
Income tax Audit 15th Feb 2021
Businesses (Requiring TP Report) 15th Feb 2021

How to file TDS return Online

Complete Coverage of Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

calendar year 2020 has begun with many challenges, with the revised due dates for various TDS related return filings and tax payments following.

Complete Chart of TDS

1.       Rates of TDS FY 2020-21

 

Section

 

Nature of Income

Rate of TDS applicable for the period Threshold

Limit for deduction tax

01-04-2020 to 13-05-2020 14-05-2020 to 31-03-

2021

193 Interest on Securities 10% 7.50%
194 Dividend 10% 7.50% Rs. 5,000 in

case of Individual

194A Interest other than interest on Securities 10% 7.50% Rs. 5,000 to

Rs. 50,000

194C Payment to Contractors –   1%: If deductee is an individual or HUF

–   2%: In any other case

–   0.75%: If deductee is an individual or HUF

–   1.50%: In any other case

–   Single payment : Rs. 30,000

–   Aggregate

payment: Rs. 100,000

194D Insurance Commission –   10%: If deductee is a domestic Company

–   5%: In any other case

–   7.50%: If deductee is a domestic Company

–   3.75%: In any other

case

15,000
194G Commission and other payments on sale of lottery

tickets

5% 3.75% 15,000
194H Commission and

Brokerage

5% 3.75% 15,000
194-I Rent –  10%: If rent pertains to the hiring of immovable property

–  2%: If rent pertains to the hiring of plant and machinery

–  7.50%: If rent pertains to the hiring of immovable property

–  1.50%: If rent pertains to the hiring of plant and

machinery

2,40,000
194-IB Payment of Rent by Certain Individuals or

HUF

 

5%

 

3.75%

50,000

 

194J Royalty and Fees for Professional or Technical Services –  2%: If royalty is payable towards sale, distribution or exhibition of cinematographic films

–  2%: If the recipient is engaged in the business of operation of call Centre

–  2%: If sum is payable towards fees for technical services (other than professional services)

–  10%: In all other cases

–  1.50%: If royalty is payable towards sale, distribution or exhibition of cinematographic films

–  1.50%: If the recipient is engaged in the business of operation of call Centre

–  1.50%: If sum is payable towards fees for technical services (other than professional services)

–  7.50%: In all other

cases

–  Director’s fees: Nil

–  Others: Rs. 30,000

194M Payment to contractor, commission agent, broker or professional by certain Individuals

or HUF

5% 3.75% 50 lakhs
194N Cash withdrawal –  2%: In general if cash withdrawn exceeds Rs. 1 crore

–  2%: If the assessee has not furnished return for the last 3 assessment years and cash withdrawn exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore

–  5%: If the assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 1 crore

–  1.50%: In general if cash withdrawn exceeds Rs. 1 crore

–  1.50%: If the assessee has not furnished return for the last 3 assessment years and cash withdrawn exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore

–  3.75%: If the assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 1

crore

–  If a person defaults in the filing of return: 20 lakhs

–  If no default is made in the filing of return: Rs 1 crore

  1. Tentative rates of TCS
Section GST liable to TCS Rate of TDS applicable for the period
14-05-2020 to 31-03-

2021

14-05-2020 – 31-03-

2021

Section 206C(1) Alcoholic liquor for human

consumption

1% 0.75%
Section 206C(1) –           Timber obtained under Forest lease

–           Timber obtained by any mode other than under a forest lease

–           Any other forest produce not being timber or tendu

leaves

2.50% 1.875%
Section 206C(1) Tendu leaves 5% 3.75%
Section 206C(1) Minerals, being coal or ignite or iron ore 1% 0.75%
Section 206C(1) Scrap 1% 0.75%
Section 206C(1C) Parking Lot 2% 1.50%
Section 206C(1C) Toll Plaza 2% 1.50%
Section 206C(1C) Mining & quarrying 2% 1.50%
Section 206C(1F) Motor Car 1% 0.75%
Section 206C(1G) Overseas tour travel package 5% 3.75%
Section 206C(1G) Remittance of Forex under LRS of Rs. 7 lakh or more in a financial year §                  0.5%: Where remittance is a repayment of loan obtained for the purpose of pursuing any education

§                  5%: In any other case

     0.375%: Where remittance is a repayment of loan obtained for the purpose of pursuing any education

     3.75%: In any other case

Section 206C(1H) Sale of goods in excess of Rs.

50 lakh

0.10% 0.075%

Attributable Due Date for TDS E-filing Returns for Fy 2019-20.

Quarter Quarter Period Last Date of Filing
1st Quarter 1st April to 30th June 31st July 2019
2nd Quarter 1st July to 30th September 31st Oct 2019
3rd Quarter 1st October to 31st December 31st Jan 2020
4rd Quarter 1st January to 31st March 30th June 2020 Read Rescript 2020

Changes in the interest rate for the delay in the deposit of TDS / TCS in time as provided for in the Taxes and Other Laws (Relaxation of Other Provisions) Legislation, 2020.

TDS / TCS Changes to Covid19 by Ministry of Finance

  • “Government to infuse Rs 50,000 crores of liquidity by reducing the rate of TDS, the rate of non-salaried specified payments made to residents, and the rate of Source Tax Collection for specified receipts by 25% of the current rate”
  • “Among other steps, the due date of all income tax returns for the fiscal year 2019-20 will be extended from 31 July 2020 and 31 October 2020 to 30 November 2020 and the tax audit from 30 September 2020 to 31 October 2020”
  • “The period of the Vivad se Vishwas scheme for making payment without an additional amount will be extended to 31 December 2020”
  • Advanced tax, self-assessment tax, standard tax, TDS, TCS, equalization fee, STT, CTT late payments made between 20 March 2020 and 30 June 2020, the lower interest rate at 9% instead of 12%/18 percent per year (i.e. 0.75 percent per month instead of 1/1.5 percent a month) will apply. There is no late fee/penalty available.
  • The government extended the scope of the lower or nil TCS, TDS credential until 30 June 2020 due to a coronavirus pandemic.

Arrival Due date for TDS & TCS Payment Deposit for Government & Non-Government Companies

  • The due date for the submission of the TCS deposit is the 7th of the next month.

TDS Deposit Due Date as follows:

  • For non-governmental entities-7th of the next month (with the exception of March where the due date is scheduled for April 30th)
  • Government departments
  • If you pay via Challan-7th of next month
  • If paid via book-entry, the same day on which the TDS is deducted.

TDS Deposit Due Date as follows

As per section 201(1A) Interest at the rate of 1 % per month or part of the month on the amount of TDS deductible from the date of tax until the date of tax actually deducted shall be charged for the late deduction.

Also, interest for late payment at a rate of 1.5 percent per month or part of the month on the amount of the payment.

Interest in late payment of TDS: amendments made pursuant to Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24th March 2020:

For late payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20 March 2020 and 30 June 2020, the interest rate will be reduced by 9 percent instead of 12 per cent/18 percent per year (i.e. 0.75 percent per month instead of 1/1.5 percent per month). No late fee/penalty shall be paid for any delay in respect of that time.

Interest in late payment of TCS or failure to collect TCS:

In the event that the collector responsible for collecting the tax at source does not raise it or refuses to pay it to the Government, he shall be liable to pay basic interest at a rate of 1% a month or part thereof on the balance of that tax from the date on which the tax was collected to the date on which the tax was actually charged and that interest shall be paid until furnish.

Applicable Interest on late payment of Tax deducted at souses before the COVID -19

SECTION NATURE OF DEFAULT INTEREST SUBJECT TO TDS/TCS AMOUNT PERIOD FOR WHICH INTEREST IS TO BE PAID
201A Non deduction of TDS, either in whole or in part INTEREST : 1% per month From the date on which tax deductable to the date on which tax is actually deducted
After deduction of tax, non-payment of tax either in whole or in part INTEREST : 1.5% per month From the date of deduction to the date of payment

Note: above said interest required to be paid before filing of TDS return.

Punishment

You will have to pay a fine equal to the amount deducted/collected under the provisions of the Income Tax Act.

Prosecution (Sec 276B)

As per the prosecution (Sec 276B), if a person refuses to pay the payment to the Central Government, the TDS deducted by him under the provisions of Chapter XVII-B shall be entitled to obtain a strict penalty of at least three months, which may be expanded to seven years. The fine depends on the conditions or inquiry conducted by the appointed tax authority/assessment officer.

Penalty (Section 234E)

The deductee of the TDS shall be liable to pay a fine of INR 200/-per day before the full sum of the TDS is paid. However, the penalty shall not exceed the actual amount of the TDS.

Late Filing Fees :

For the delayed fee of TDS after deduction under Section 201(1A), you have to pay interest at a rate of 1.5 percent per month from the date of the deduction to the actual date of the deposit. It should also be remembered that interest is measured on a monthly basis rather than on a number of days. Half of a month will also be regarded as a whole month.

What is important to remember here is that

The estimation of interest on the balance of the TDS owed starts on the day from which the TDS was withheld rather than the day from which it was due.

PENALTIES (Section 271H)

Pursuant to this rule, the Assessing Officer may direct a person who has not filed a TDS payment on time with a minimum of INR 10,000, which may even be extended to INR 1,000,000.

If the following conditions are met, no penalty will be levied (under section 271H) for late payment of TDS / TCS returns:

  • The tax deducted at the source must be paid to the credit of the government.
  • No penalty will be levied if interest and late filing fees are paid to the Government’s credit.
  • Before the one-year period expires, the TDS / TCS return has been filed from the due date.

TDS for the purchase of immovable property

For the purchase of immovable property on which TDS applies, the return, together with the payment of TDS, must be made before the 30th of the following month. For example, TDS for property purchased in May must be deposited by 30 June.

In Dec 2020

Recent Income Tax and GST Due Dates of Filling date Extended
1. Income Tax Returns Due Dates for:
(a) Companies
(b) If any person which is other than Co. whose accounts are needed to be audited in income tax or any other law
(c) a partner of a firm whose accounts are required to be audited under the Income Tax Act or any other law
(d) any person who is required to furnish Transfer Pricing report u/s 92E under Income Tax Act.
has been extended from 31st January 2021 to 15th February 2021.

2. Income Tax Returns Due Dates for Any other Persons not covered in point 1 above has been extended from 31st December 2020 to 10th January 2021.

3. Due to Extention the Consequently Due Date for filling of Tax Audit Report has been extended from 31st Dec 2020 to 15th Jan 2021.

4. GST Annual Return (in form GSTR-9C and 9) for Financial Year 2019-20 has been increased from 31st Dec 2020 to 28th Feb 2021.

5. Due Date for making the declaration under Vivid se Vishwas has also been extended from 31st December 2020 to 31st January 2021.

6. Today (31.12.2020) is the last date to hold AGM for 2019-20, avail LLP Settlement & Cos Fresh Start Scheme 2020 & file GSTR-9A for 18-19 by Composition person.

Related Articles/Information

Summary of Important Due date of July and Aug 2020

Disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; before making any decisions do consult your Professional / tax advisor. For misrepresentation or interpretation of act or rules Author does not take any responsibility. Neither the author nor the firm accepts any liability for the loss or damage of any kind arising out of information in this document or for any action taken in reliance there on. carajput.com is committed to helping entrepreneurs and small business owners to start, manage and grow their business with peace of mind. Our goal is to support the entrepreneur on legal and regulatory requirements and to be a partner throughout the entire business life cycle, offering support to the company at every stage to ensure that it is compliant and consistently growing. Hope the information will assist you in your Professional endeavors. For query or help, contact: info@carajput.com or call at 09811322785/4 9555 5555 480)

HOW TO FILE TDS RETURN ONLINE?

USUAL MANUAL PROCEDURE FOR FILING OF E-TDS QUARTERLY STATEMENT 

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ETDS QUARTERLY STATEMENT / RETURNS SHALL BE UPLOADED AT TRACES TDSCPC WEBSITE AND NOT ON TIN NSDL WEBSITE.

TDS STATEMENT UPLOAD: User Manual

  • Pre-Requisites for Uploading TDS Statement
  • To upload TDS, the user should hold valid TAN and should be registered in e-Filing
  • The statement should be prepared using the Return Preparation Utility (RPU) and validated using the File Validation Utility (FVU). The utilities can be downloaded from the tin-nsdl website (https://www.tin-nsdl.com/).
  • Valid DSC should be registered in e-Filing.
  • Upload TDS/TCS Statement

STEPS in Uploading TDS Statement:

Step 1: In e-Filing Homepage, Click on “Login Here”

Step 2: Enter User ID (TAN), Password, and Captcha. Click Login.

Step 3: Post login, go to TDS   Upload TDS.

Step 4: In the form provided, select the appropriate statement details from the drop-down boxes for:

  • FVU Version
  • Assessment Year
  • Form Name
  • Quarter
  • Upload Type

Note:

  • TDS can be uploaded from  AY
  • Only Regular Statements can be uploaded, the Correction statement can be uploaded only through the tin-NSDL portal.

Step 5: Click Validate to Validate Statement details.

Step 6: “Upload TDS ZIP file”: Upload the TDS/TCS statement (Prepared using the utility downloaded from tin-NSDL Website)

Step 7: “Attach the Signature file” Upload the signature file generated using DSC Management Utility for the uploaded TDS ZIP file. For further details on generating the Signature file click here. Navigate to Step by Step Guide for Uploading Zip File (Bulk Upload)

Step 8: Click on the “Upload” button.

Once the TDS is uploaded, a success message will be displayed on the screen. A confirmation mail is sent to the registered email id.

New Revise TDS/TCS due dates for filing Return and Payment

View Filed TDS Statement – the steps are as below:

Step 1: Log in to e-Filing, Go to TDS

Step 2: In the form provided, select the details from the drop-down boxes for Assessment Year, Form Name, and Quarter respectively for which the TDS was uploaded.

Step 3: Click on “View Details”.

Step 4: The status of the TDS uploaded is displayed.

  • Once uploaded the status of the statement would be “Uploaded”. The uploaded file will be processed and validated. Upon validation, the status will be either be “Accepted” or “Rejected” and would be reflected within 24 hours from the time of upload. In case if “Rejected”, the rejection reason will be displayed.
  • If the status is “Rejected”, click on the Token Number to view the error details.
  • The reason for rejection would be displayed as below:

Step 6: If the status is “Accepted”, click on the Token Number to see the details of acknowledgment of the statement uploaded for all future reference. 

 

Deadline for TDS Returns Filing for the FY 2020-21

Quarter Quarter Period Quarter Ending Due Date
First Quarter April 2020 – June 2020 30 June 2020 31 March 2021
Second Quarter July 2020 – September 2020 30 September 2020 31 March 2021
Third Quarter October 2020 – December 2020 31 December 2020 31 January 2021
Fourth  Quarter January 2020 – March 2020 31 March 2020 31 May 2021

Relevant TDS Return filling Forms

The below are the TDS return filling forms & the object/purpose for which they are used:

Form  No  Purpose of TDS return form 
Form 24Q salary TDS from
Form 26Q All payments apart from salaries
Form 27Q Subtraction of tax from dividend, interest or any other amount payable to non-residents
Form 27EQ Collection of tax at source

RELEVANT LATE FILLING FEES 

NOW Failure to submit  TDS returns within the deadline will mean that we needed to an applicable late filing fee of INR 200 per day. That fee will be charged for every day after the deadline until the date on which your TDS return is submitted. However, the max fees that you will have to pay are only limited to Tax deducted as sources amount.

What is the applicable Penalty as per the income tax act for TDS Return? 

In case of TDS returns are submitted after the deadline or there are details in  the TDS return forms, the below penalties shall have become applicable:

  • The penalty under Section 234E: as per the section, the deductor will be charged Rs.200 per day until TDS is paid, but the penalty amount cannot be more than the TDS amount.
  • The penalty under Section 271H: A penalty which may range between a minimum of INR 10k  & a max of INR 1,00,000/- shall be applicable in case wrong details have been submitted, such as incorrect PAN, incorrect tax amount, etc.

A penalty would not be charged U/s 271H of the Tax law in case TCS / TDS returns are not filed within the deadline, provided that the appliable below requirements are applicable:

  • The TCS/TDS is paid to the Govt’s credit.
  • The submitting of the TDS/TCS return is done prior to the expiry of one year from the deadline.
  • The interest & fee applicable on late filing (if any) have been paid to the govt’s credit.

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