TDS Return Filing: Simplified with Compliance

Filing TDS (Tax Deducted at Source) returns doesn’t have to feel like solving a Rubik’s cube in the dark. With the right guidance and tools, it’s straightforward and manageable. We make sure you file your TDS returns accurately, on time, and without any stress.

Avoid Penalties: Filing on time helps you avoid penalties, interest, and legal complications.
Facilitates Tax Credit: TDS returns enable taxpayers to claim credit for the tax deducted.
Transparent Records: It documents all TDS-related transactions, for better financial planning & audits.
Refund Claims: If excess tax has been deducted, TDS return filing helps process refunds smoothly.

TDS return filing doesn’t have to be complicated. Let Compliance Monk streamline your TDS Compliance while you focus on growing your business. Contact us today to ensure accurate, timely, and stress-free TDS return filing!

Key Advantages

Expert Guidance

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Quick Turnaround

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Reliable Support

Our dedicated support team is always ready to answer your questions, assisting you every step of the way.

What is TDS?

TDS is a tax collection mechanism under which tax is deducted at the time a payment is made. The payer (deductor) deducts a specified percentage of the payment and deposits it with the government. This ensures the government collects tax at the source itself, making compliance easier and tax payments timely.

For example, TDS is deducted on payments such as salaries, rent, contractor fees, professional charges, commissions, and interest. The recipient gets the net income (post-TDS) and is required to disclose the gross income while filing their income tax return.

Why is TDS Return Filing Important?

Filing TDS returns is mandatory under the Income Tax Act, 1961, and ensures your business remains compliant with tax laws.

Who Should Deduct and File TDS Returns?

Entities required to deduct and file TDS returns include:

Individuals or businesses making payments exceeding prescribed limits under the Income Tax Act.
Companies, partnerships, sole proprietors, and Hindu Undivided Families (HUFs) with tax audit requirements.
Government bodies and corporations making taxable payments.

Common Transactions Subject to TDS

Salary Payments (Section 192)
Rent Payments (Section 194I): If annual rent exceeds ₹2,40,000 (600000 from AY 2026-27)
Contractor/Sub-Contractor Payments (Section 194C): Single payments exceeding ₹30,000 or aggregate payments exceeding ₹1,00,000 in a financial year.
Professional Fees (Section 194J): Payments exceeding ₹30,000 annually.
Interest Payments (Section 194A): Interest exceeding ₹40,000 (₹50,000 for senior citizens).
Commission and Brokerage Payments

Penalties for Non-Compliance

Failure to file TDS returns on time can result in:

Late Deduction/Payment: Interest at 1% per month for late deduction and 1.5% per month for late deposit.
Late Filing of TDS Return: A fee of ₹200 per day until the return is filed, subject to a maximum equal to the amount of TDS.
Penalty by Assessing Officer: In extreme cases, the penalty may be equal to the amount of TDS not deducted or remitted.

Step-by-Step: How to File TDS Returns Online?

Collect Required Documents: Gather your TAN, PAN, challan details, and past TDS records.
Choose the Correct Form: Select the appropriate form (e.g., Form 24Q for salaries).
Prepare the TDS Return: Use the TDS Return Preparation Utility (RPU) provided by the Income Tax Department to input all details.
Validate the Return: Run the File Validation Utility (FVU) to ensure compliance.
Submit Online: Upload the validated .fvu file to the Income Tax e-Filing portal.
Acknowledgment: Keep the acknowledgment receipt for future reference.

Revised TDS Returns

If errors are detected in the original TDS returns (e.g., incorrect PAN or challan details), you must file a revised TDS return. Prerequisites include:

Original TDS return must be accepted by the TIN system.
Use the most recent consolidated TDS statement, available on the TRACES portal.

Why Choose Compliance Monk?

We ensures a smooth and hassle-free TDS return filing experience. Contact us today to ensure accurate, timely, and stress-free TDS return filing!

Whether you’re a business owner, a professional, or someone responsible for managing taxes, we’ve got you covered. Our expert team ensures:

Expert Guidance: Our team stays updated on the latest tax regulations.
Error-Free Filing: Avoid common mistakes that lead to penalties.
Timely Submissions: Never miss a deadline with our proactive reminders.
End-to-End Support: From preparation to submission, we manage everything.

FAQs

1. What is TDS and why is it important?

TDS, or Tax Deducted at Source, is a system where tax is deducted by the payer at the time of making specific payments such as salaries, rent, professional fees, or interest. It ensures timely collection of taxes by the government and reduces the burden on taxpayers by allowing tax to be paid in installments rather than as a lump sum.

2. Who is required to deduct TDS?

TDS must be deducted by:

Individuals, companies, partnerships, and other entities making payments exceeding prescribed limits under the Income Tax Act, 1961.
Entities having a valid TAN (Tax Deduction and Collection Account Number).
Individuals liable for tax audits under Section 44AB.

3. What are the common transactions that attract TDS?

TDS is applicable on various types of payments, including:

Salaries
Rent (if exceeding ₹2,40,000 annually)
Contractor and sub-contractor payments
Professional or technical service fees (if exceeding ₹30,000 annually)
Interest payments (other than interest on securities)
Commissions and brokerage

4. What are the due dates for TDS return filing?

The due dates for TDS returns vary based on the financial quarter:

Quarter	Period	TDS Return Due Date
Quarter 1	April to June	31st July
Quarter 2	July to September	31st October
Quarter 3	October to December	31st January
Quarter 4	January to March	31st May

5. What happens if I fail to file TDS returns on time?

Failure to file TDS returns on time can result in the following penalties:

Late Filing Fee: ₹200 per day until the return is filed, subject to the total amount of TDS.
Interest: 1% per month for late deduction and 1.5% per month for late deposit of TDS.
Penalty: The Assessing Officer may impose a penalty equal to the amount of TDS not deducted or remitted.

6. What forms are used for TDS return filing?

The applicable TDS return forms depend on the type of transaction:

Form 24Q: TDS on salaries.
Form 26Q: TDS on payments other than salaries.
Form 27Q: TDS on payments to non-residents.
Form 27EQ: Tax Collected at Source (TCS).

7. How can I file TDS returns online?

The process for online TDS return filing includes:

Collecting required documents, including TAN, PAN, and challan details.
Choosing the appropriate TDS form based on the transaction type.
Preparing the return using the TDS Return Preparation Utility (RPU).
Validating the file with the File Validation Utility (FVU).
Uploading the validated file on the Income Tax Department’s e-filing portal.
Retaining the acknowledgment for future reference.

8. What is a revised TDS return, and when is it required?

A revised TDS return is filed to correct errors in the original return, such as:

Incorrect PAN details of the deductee.
Errors in challan or transaction details.
Missing entries.

Revised returns can only be filed if the original return has been processed and accepted by the TIN system.

9. What are the penalties for errors in TDS returns?

If errors are found in TDS returns, the following penalties may apply:

Late deduction or payment: Interest at 1% or 1.5% per month.
Errors in PAN: Non-credit of TDS to the deductee, requiring correction and re-filing.
Non-filing or late filing: Penalties as mentioned above.

10. What is TAN, and why is it important for TDS?

TAN, or Tax Deduction and Collection Account Number, is a unique identifier issued by the Income Tax Department to entities responsible for deducting or collecting TDS/TCS. It must be quoted in all TDS-related documents, returns, and payments.

11. What is the difference between TDS and TCS?

TDS (Tax Deducted at Source): Tax deducted by the payer at the time of making certain payments such as salaries, rent, or contractor fees.
TCS (Tax Collected at Source): Tax collected by the seller at the time of sale of specific goods or services.

12. Can TDS returns be filed without a digital signature?

TDS returns require a digital signature for submission. However, entities without a digital signature can use an Electronic Verification Code (EVC) for validation.

13. How can I claim a TDS refund?

To claim a TDS refund:

File your income tax return, including details of TDS deducted.
Ensure the deductor has filed TDS returns correctly, and the deduction reflects in Form 26AS.
If excess tax has been deducted, the refund will be processed by the Income Tax Department.

14. How does Compliance Monk simplify TDS return filing?

At Compliance Monk, we offer end-to-end solutions for TDS compliance, including:

Guidance on preparing and submitting accurate returns.
Assistance with correcting errors and filing revised returns.
Proactive reminders for due dates to avoid penalties.
Expert support to navigate complex tax regulations.

15. Why is TDS return filing mandatory?

TDS return filing is mandatory to:

Ensure compliance with tax laws.
Provide a transparent record of tax deductions.
Facilitate tax credit for deductees.
Avoid penalties for non-compliance or incorrect filing.

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