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- TDS (Tax Deducted at Source) Return is a quarterly statement submitted by the deductor to the Income Tax Department.
- It contains details of TDS deducted and deposited during the quarter, along with PAN of the deductor and deductees.
- Filing an accurate TDS return ensures the deductee gets credit for the tax deducted in their Form 26AS.
- Common TDS return forms include Form 24Q (salary), Form 26Q (non-salary payments) and Form 26QB (sale of property).
TDS returns must be filed by any person or entity who has deducted tax at source, including:
- Employers deducting TDS on salary payments
- Businesses making payments to contractors, professionals or rent above prescribed limits
- Buyers deducting TDS on purchase of immovable property
- Companies, firms and individuals liable for tax audit who make specified payments
- TAN (Tax Deduction and Collection Account Number) of the deductor
- PAN of the deductor and all deductees
- Challan details of TDS deposited (BSR code, challan number, date)
- Details of payments made and TDS deducted, category-wise
- Previous quarter’s TDS return, if applicable
- A late filing fee of Rs. 200 per day is charged under Section 234E until the return is filed, subject to the TDS amount.
- Additional penalty under Section 271H, ranging from Rs. 10,000 to Rs. 1,00,000, may be levied for non-filing or incorrect filing.
- Interest is also charged for late deduction or late deposit of TDS.
- Timely filing helps deductees claim TDS credit without delay in their income tax returns.