What is TDS Return?
A TDS Return is a quarterly statement which has to be submitted to the income tax department. Submitting TDS Return is mandatory if you are a one responsible for deduction. It has details of TDS deducted and deposited by you. TDS has to be deducted at the rates prescribed by the tax department. An Individual or HUF need not deduct TDS except for rent paid over 50,000 pm.
How to file a TDS/ TCS return
The Deductor must have registered the TAN at ITD’s e-Filing Portal using a valid Digital Signature Certificate.
Once the log in is created user can upload the Quarterly TDS/TCS statement as guided in the portal.
Deductor can check the status of return after 24 hours of upload using the Token Number.
Advantages of Filing TDS return
TDS/TCS return filling is legal requirement in India as per Income tax Act 1961 for such class of taxpayer, prescribed limit & nature of payment as per law.
If you filing TDS return on time, hence no need to pay interest, penalty & disallowance of income.
Disadvantages of a Non Filling TDS return
* Fees for late-filing of TDS under section 234E. Rs.200 each day of not filling maximum upto the TDS collected. Min penalty of Rs.10,000 can be levied.
* Penalty for late-filing or non-filing TDS under section 271H:
* Interest shall be levied on late deduction & late payment of TDS
* Incorrect filling also draws penalty min of Rs10,000 and max Rs.1,00,000