TDS filing is an important part of financial audit and compliance. It involves filing returns with the Income Tax Department to ensure that taxes are paid on time and accurately.
TDS Filing
Tax Deducted at Source or TDS is a source of collecting tax by Government of India at the time when a transaction takes place. Here, the tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier.
In case of payment of salary or life insurance policy, tax is deducted at the time of payment. The deductor then deposits this TDS amount to the Income Tax (I-T) department. Through TDS, some portion of your tax is automatically paid to the I-T department. Thus, TDS is considered as a method of reducing tax evasion.
Tax is deducted usually over a range of 1% to 10%.
| Amount paid/credited | Due date of TDS deposit | |
|---|---|---|
| Government Office |
Without Challan With Challan |
Same Day 7th of next month |
| Others |
On perquisites opt to be deposited by employer In month of March In other months |
7th of next month 30th April 7th of next month |
Apart from depositing the tax, the deductor should also file a TDS return.
TDS return is a quarterly statement to be given to the I-T department. It is compulsory for deductors to submit a TDS return on time. The details required to file
PAN of the deductor and the deductee
Amount of tax paid to the government
TDS challan information
Others, if any
TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments :
Payment of Salary
Income by way of “Income on Securities”
Income by way of winning lottery, puzzles and others
Income from winning horse races
Insurance Commission
Payment in respect of National Saving Scheme and many others
