TDS Return Filing

TDS(Tax Deducted at Source) is the tax withheld by the payer before making a payment to the payee when a transaction occurs.
For example, your employer (Payer) deducts a portion as tax (TDS) from your salary before paying you (Payee).
The amount deducted is then deposited with the government on your behalf. This TDS will be offset with your final tax liability. Therefore, people cannot evade taxes as the government knows their income and financial transactions, and the tax they owe is accounted for.

In addition to remitting the tax, the deductor is also responsible for filing the TDS return with the Income Tax (IT) department.
TDS return is a quarterly statement that provides an overview of all TDS-related transactions made within that quarter. Generally, it includes information about the TDS amounts collected and deposited with the IT department.
These details are provided in a TDS return:

• PAN of both the deductor and the deductee
• TDS deposited with the government
• Details of the TDS challan used for tax payment
• Other information

After the TDS returns have been successfully filed, the information becomes visible on Form 26AS.

Here's how to file your TDS return online in a simple, step-by-step manner:

• Visit the official e-filing portal.
• Click on 'Login Here.'
• Enter your TAN or user ID, password, and the Captcha code.
• Click 'Login.'
• Go to the 'TDS' section and choose 'Upload TDS.'
• In the provided form, select the relevant statement details, including the FVU version, Form name, financial year, upload type, and quarter.
• Click 'Validate' to check the statement details.
• Upload the TDS statement with your DSC (Digital Signature Certificate).
• Upload the ZIP file of the TDS statement.
• Attach a signature file.
• Click 'Upload.'

To ensure a smooth TDS return filing process, make sure you understand the requirements for uploading TDS returns.

According to the Income Tax Act, anyone who deducts or collects TDS or TCS must file their TDS or TCS return. If you're one of the following and have deducted TDS from payments, you must file a TDS return every quarter:

• Companies or Corporations
• Government Offices
• Individuals under section 44AB (if mandatory audit applies)

You must submit your TDS or TCS return on time as per the specified due dates. Failing to file the return on time may result in a penalty.

The TDS return filing due dates for the financial year 2023-24 are:

Late filing: As per Section 234E, if you don't file your TDS/TCS return within the due date, you may have to pay a late filing fee of Rs. 200 for each day till you file the return, but this amount can't be more than the total TDS amount.
Delayed or Incorrect filing: If you don't file your TDS or TCS return on time, you may face a penalty under section 271H. The penalty can range from Rs. 10,000 to Rs. 1,00,000. This penalty is in addition to any late filing fees.
The penalty can also apply if you file an incorrect TDS/TCS return. However, if you can prove that you've paid the taxes, late filing fees, and interest (if any) to the government and filed the return within one year from the due date, you won't be penalised for delayed filing. This rule applies only to late filing penalties, not to penalties for filing incorrect statements.
In certain cases, you can seek relief from this penalty under section 273A(4) if specific conditions are met. Additionally, section 273B provides immunity from the penalty if you can demonstrate that there was a reasonable cause for the failure.

TDS is deducted on the payment amount as per the rate specified in the Income Tax Act

If you do not file TDS return, you’ll be liable to pay late fees as per Section 234E and a penalty under Section 271H (Discussed earlier).

TDS Certificate is a certificate which is issued by the person who deducts TDS (deductor) to the deductee. Whenever TDS is deducted, the deductee must demand the TDS certificate which mentions the amount of TDS deducted from your payment.
The deductor can generate this certificate from TRACES after filing the TDS return. There are two types of TDS certificate:

• Form 16- Is an annual TDS certificate issued to employees for TDS deducted from salary
• Form 16A- Is a quarterly certificate issued in respect of all other types of payments

Before uploading TDS returns, note these TDS return requirements:

• You have a valid TAN
• You are registered for e-filing portal with your TAN
• Use Return Preparation Utility (RPU) and File Validation Utility(FVU) to prepare and check the TDS statement
• Register your DSC for e-filing
• Provide details of your Demat account or bank account

Filing TDS on ClearTDS is easy! Refer to the detailed step-by-step process here.

Cleartax offers India’s most comprehensive e-TDS solution- ClearTDS.
ClearTDS, is recognised as India's Leading Financial TDS Software. There are several compelling reasons why you should choose ClearTDS:

• Save Taxes: ClearTDS helps you save on taxes by identifying and utilizing unconsumed challans from the past two years, ensuring you don't miss out on any available tax benefits.
• Traces Integration: It seamlessly integrates with TRACES, allowing for the automatic import of any previous TDS return files.
• Regular/Correction e-TDS: ClearTDS enables you to easily prepare both regular and correction of e-TDS statements online.
• Improve Speed: Multiple CAs can work simultaneously on the same deductor's TDS, enhancing efficiency and reducing the time required for TDS processing.
• Deductor Dashboard: All relevant deductor information is conveniently accessible in one dashboard, streamlining the management of TDS-related data and records.
• FVU Handling: ClearTDS offers a one-stop solution for online FVU generation and submission.
• Go Error-Free: The software provides bulk PAN verification for all deductees within a deductor's TDS, minimizing errors and ensuring accurate TDS filings.
• Early Warning System: ClearTDS includes an early warning system that detects potential TDS notices that may be received from TRACES, helping you proactively address compliance issues.
• Single-Click Form 16s: With a single click, you can prepare, merge, and email Form 16s, including Form 16A and Form 16B.

ClearTDS by Cleartax is a comprehensive solution that not only simplifies TDS compliance but also enhances accuracy and efficiency, making it the top choice for managing your TDS requirements.
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