TDS Return Filling

All those persons who are required to deduct tax at source (TDS) are required to obtain TAN number. Entities having TAN number must duly fill their TDS returns.

TAN Highlights

TAN - Tax deduction Account Number

TAN is a 10 character alpha-numeric code issued by the Income Tax Department for persons responsible for deducting or collecting tax at source. All most all for-profit entities and not-for-profit entities are required to obtain TAN.

Proprietorship Require TAN

Salaried individuals are not required to deduct tax at source. However, individuals running a proprietorship are required to obtain TAN and deduct tax at source when required.

Validity

Once a TAN is issued, it is valid for lifetime. However, TDS Filings must be made quarterly on the 15th day of July, October, January and May. Non-filing of TDS filings within the due date will attract a penalty.

TDS Payments

Tax Deducted at Source must be paid into authorized bank, quoting the TAN and using Challan 281. TDS during the preceding month must be paid before the 7th day of the following month.

TAN Facilitation Center

Rajput Jain & Associates is association with authorized TAN facilitation center. Therefore, Rajput Jain & Associates can help you obtain TAN hassle-free and quickly. Just send the TAN application along with the supporting documents and we will help you get your TAN quickly.

Quick Processing

TAN can be obtained in 5-10 working days from the time of submission of application with the required documents. The application must be submitted in hard format along with self-attested copy of address and identity proof of the applicant.

No, PAN cannot be quoted where TAN is required. TAN is provided for identification of Deductor of tax while PAN serves a general identification for every income tax assessee.

It is mandatory for business entities and other type of entities to deduct tax at the source, i.e., while paying rent, salary, etc., and pay the same to the Government. To track these payments, TDS Certificates and TDS Filings, the Government mandates TAN registration for all entities required to deduct tax at source. TDS ensures the responsibility for payment of tax is diversified and the Government receives tax sooner.

Following are duties of Tax Deductor/Collector:

• To apply for Tax Deduction Account Number (TAN) in form 49B, in duplicate at the designated TIN facilitation centers of NSDL(please see www.incometaxindia.gov.in), within one month from the end of the month in which tax was deducted.
• To quote TAN (10 digit reformatted TAN) in all TDS/TCS challans, certificates, statements and other correspondence.
• To deduct/collect tax at the prescribed rates at the time of every credit or payment, whichever is earlier, in respect of all liable transactions.
• To remit the tax deducted/collected within the prescribed due dates by using challan no. ITNS 281 by quoting the TAN and relevant section of the Income-tax Act.
• To issue TDS/TCS certificate, complete in all respects, within the prescribed time in Form No.16 (TDS on salaries), 16A(other TDS) 27D( TCS).
• To file TDS/TCS quarterly statements within the due date.
• To mention PAN of all deductees in the TDS/TCS quarterly statements

TDS payments can be made online through net banking facilities

TDS returns are due quarterly.

Due Date to file Quarterly TDS Return

For tax to be deducted/collected by Govt Office:-

• Tax deposited without challan - Same Day
• Tax deposited with challan - 7th of next month
• Tax on perquisites opt to be deposited by the employer - 7th of next month

For other Deductors:-

• Where amount is paid / invoice is booked in Month of March - on or before 30th day of April.
• Where amount is paid / invoice is booked in month of April to February, on or before 7th of next month?

Quarter ended On	Date of Payment
30th June	7th July
30th September	7th October
31st December	7th January
31st March	30th April

Quarterly e-TDS/TCS return is the TDS return filed with TDS CPC under section 206 of the Income Tax Act in

• Form 24Q - For Salaries
• Form 26Q - For Payments Other than Salaries
• Form 27Q- For Payments made to Non Residents
• Form 27EQ - For TCS Returns filed under section 206C
• TDS TCS Returns are prepared in electronic media as per prescribed data structure. Such returns furnished in a CD/Pen Drive should be accompanied by a signed verification in Form No. 27A in case of TDS returns or Form No. 27B in case of TCS returns.

Following person are liable to file E - TDS / E - TCS RETURN.

• All Government department/office or
• All companies. or
• All person required to get his accounts audited under section 44AB in the immediately preceding financial year; or
• The number of deductees records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,

You can file your e-TDS/TCS return for the deductees who have valid PANs and subsequently file correction return for remaining deductees who’s PANs were not available with you while furnishing regular return.

You are required to file a correction return in a prescribed file format available at www.tin-nsdl.com.

Yes corrected e-TDS/TCS returns can be filed. You can file corrected e-TDS/TCS return on account of any rectification or after incorporating missing PAN(s) details with any TIN-FC.

Yes. Upload fee is payable for each and every e-TDS/TCS return accepted by the TIN-FC irrespective of whether it is a corrected e-TDS/TCS return or an original e-TDS/TCS return.

Form 26AS is a consolidated tax statement issued under Rule 31 AB of Income Tax Rules to PAN holders. This statement with respect to a financial year will include details of:

• Tax deducted at source (TDS);
• Tax collected at source (TCS); and
• Advance tax/self-assessment tax/regular assessment tax etc. deposited in the bank by the taxpayers (PAN holders).

The credits available in the tax statement confirm that:-

• The tax deducted/collected by the deductor/collector has been deposited to the account of the government;
• The deductor/collector has accurately filed the TDS/TCS statement giving details of the tax deducted/collected on your behalf;
• Bank has properly furnished the details of the tax deposited by you.
• In future you will be able to use this consolidated tax statement (Form 26AS) as a proof of tax deducted/collected on your behalf and the tax directly paid by you along with your income tax return after the need for submission of TDS/TCS certificates and tax payment challans along with income tax returns has been dispensed with by the Income Tax Department (ITD).
• However as of now for claiming the credit for tax deducted/collected at source you may be required to enclose TDS/TCS certificates (Form 16/16A) issued to you by the deductor.

TDS (TAX DEDUCTION AT SOURCE) RATES FOR FINANCIAL YEAR 2014-15

Sl. No	Section Of Act	Nature of Payment in brief	CUT OFF	Rate % HUF/IND	Rate % Others
1	192	Salaries		Average Rate	Average Rate
2	193	Interest on debentures	5000	10	10
3	194	Deemed dividend	-	10	10
4	194A	Interest other than Int. on securities (by Bank)	10000	10	10
4A	194A	Interest other than Int. on securities (By others)	5000	10	10
5	194B	Lottery / Cross Word Puzzle	10000	30	30
6	194BB	Winnings from Horse Race	5000	30	30
7	194C(1)	Contracts	30000	1	2
8	194C(2)	Sub-contracts/ Advertisements	30000	1	2
9	194D	Insurance Commission	20000	10	10
10	194EE	Payments out of deposits under NSS	2500	20	-
11	194F	Repurchase of units by MF/UTI	1000	20	20
12	194G	Commission on sale of lottery tickets	1000	10	10
13	194H	Commission or Brokerage	5000	10	10
14	194I	Rent (Land & building) furniture & fittings) Rent (P & M , Equipment)	180000 180000	10	10
15	194 IA	TDS on transfer of immovable property other than agriculture land (wef 01.06.13)	50 Lakh	1	1
16	194J	Professional/Technical charges/ Royalty & Non-compete fees	30000	10	10
17	194J(1)(ba)	Any remuneration or commission paid to director of the company (Effective from 1 July 2012)	NIL	10	10
18	194LA	Compensation on acquisition of immovable property	200000	10	10

TCS (TAX COLLECTION AT SOURCE RATES FINANCIAL YEAR 2014-15)

Sl. No	Nature of Goods	Rates in %
1	Alcoholic liquor for human Consumption	1
2	Tendu leaves	5
3	Timber obtained under forest lease	2.5
4	Timber obtained by any mode other than a forest lease	2.5
5	Any other forest produce not being timber or tendu leaves	2.5
6	Scrap	1
7	Parking lot	2
8	Toll plaza	2
9	Mining & Quarrying	2
10	Minerals, being coal or lignite or iron ore	1 wef 01.07.2012
11	Bullion or jewellery (if the sale consideration is paid in cash exceeding INR 5 lakhs in jewellery and two lakh in case of Bullion)	1 wef 01.07.2012

SURCHARGE APPLICABILITY WHILE DEDUCTING TDS

Note:-

Yearly Limit u/s 194C: Where the aggregate of the amounts paid/credited or likely to be paid/credited to Contractor or Sub-contractor exceeds Rs.75,000 during the financial year, TDS has to be deducted u/s 194C. TDS at higher rate ie., 20% has to be deducted if the deductee does not provide PAN to the deductor.(read detail u/s 206AA).No TDS on Goods Transport: No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum.(read details here No TDS on Goods Transport ) Surcharge on tax is not deductible/collectible at source in case of resident individual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than salary. Surcharge on TDS is applicable on payment made to nonresident other than company, if payment is in excess of one crore.(10 %).Surcharge on TDS on salary is applicable if taxable salary is more than one crore @ 10 %

In the case of Company other than Domestic Company

• At the rate of two per cent. Of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees;
• At the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees.
• No Cess on payment made to resident: Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary. Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company.

Delay in furnishing the e-TDS statement will result in a mandatory fees of Rs. 200 per day, the total fees should not exceed the total amount of TDS made for the quarter. The penalty for non filing of TDS return for more than one year from the specified date is a minimum Rs 10,000 to Rs 1 lakh.