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TDS Return Filing

  • The concept of Tax Deducted at Source (TDS) was introduced with an aim to collect tax from the very source of income.
  • As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same to the account of the Central Government.
  • TDS return filing is a mandatory tax compliance process that involves reporting and submitting details of tax deductions made at source to the tax authorities.
  • It helps to ensure transparency and accountability in the taxation system and facilitates the assessment and taxation of income for both the deductor and the deductee.
  • The deductee from whose income, tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.

What is TDS return?

A TDS return is a quarterly statement summarizing all TDS-related transactions made within a specific quarter. It encompasses details of TDS collected and deposited with the Income Tax department by the deductor. Key elements in a TDS return include:

1. Deductor and deductee’s PAN
2. Particulars of TDS payments
3. Challan details

These details are also reflected in payee’s Form 26AS of the deductee.

TDS Challan

  • TDS challan is primarily used for depositing the TDS with the government. The same TDS challan is used for depositing the taxes collected under the different sections of the Income Tax Act.
  • TDS challan can only be downloaded at the time of payment. However, the taxpayer can download the challan and check the status through OLTAS or the income tax portal.

TDS Section Code

To refer to the exact payment of TDS under each section, Income Tax Department has allocated a three digit code to each section. This is the last 3 digits of any section.
Eg: TDS for payment of salary shall be deducted under section 192 of Income Tax Act, However, while making the TDS remittance to Govt., following payment category needs to be made with specific TDS code;
Code 92A: Payment to Govt. Employees other than Union Government Employees: 
Code 92B: Payment of Employees other than Govt. Employees


TDS Return Forms

  • TDS returns are filed using different forms depending on the nature of the income and the person making the deduction.
  • Some commonly used forms for TDS return filing in India, are Form 24Q for TDS on Salary, Form 26Q for non-salary TDS, and Form 27Q for TDS on payments made to non-residents.

TDS Forms shall includes following details:

  • A TDS form is a statement or report that contains details of all TDS deductions made by an entity or individual during a particular period.
  • These details include the name and PAN (Permanent Account Number) of the deductee (the person whose TDS is deducted), the amount deducted, the type of payment, and other relevant information.

 

Form 16

It is a certificate of TDS on salary that contains details of income earned and the taxes deducted. It is divided into two parts: Part-A and Part-B. The employer can download Form 16 Part A and Part B from their account on TRACES.


Form 16 – Part A

It contains details of TDS deducted by an employer. Part-A is generated by TRACES. Part A includes the following details:
  • Employer Details: Name, Address, PAN, TAN
  • Employee Details: Name, PAN
  • Tax details: Tax deducted and deposited on the employee’s behalf

Sample Form 16 – Part A


Form 16 – Part B

Part-B is an annexure containing details of Income Chargeable under the head of ‘Salary’. Salary breakdown includes allowances, perquisites, bonus, income tax deductions, Taxable Income, Taxes, and TDS.


Sample Form 16 – Part B


26AS

Form 26AS is a statement that provides details of any amount deducted as TDS or TCS from various sources of income of a taxpayer (deductee). It also reflects details of advance tax/self-assessment tax paid, and high-value transactions entered into by the taxpayer.


Structure of 26AS:

  • Part A: Details of Tax Deducted at Source
  • Part A1: Details of Tax Deducted at Source for 15G/15H
  • Part A2: Details of Tax Deducted at Source on the Sale of Immovable Property u/s194(IA)/TDS on Rent of Property u/s 194IB/TDS on Payment to Resident contractors and professionals u/s 194M (For Seller/Landlord of Property/ Payee of resident contractors and professionals)
  • Part B: Details of Tax Collected at Source
  • Part C: Details of Tax Paid (other than TDS or TCS)
  • Part D: Details of Tax Refund
  • Part E: Details of SFT Transactions
  • Part F: Details of Tax Deducted at Source on the sale of Immovable Property u/s194(IA)/TDS on Rent of Property u/s 194IB/TDS on payment to resident contractors and professionals u/s 194M (For Buyer/Tenant of Property/Payer of resident contractors and professionals)
  • Part G: TDS Defaults* (processing of Statements)
  • Part H: Details of Turnover as per GSTR-3B

Under Income tax..............is the form issued by the employer to his employee certifying the amount of tax deducted by him against the salary income.

Form 26AS
Form 27B
Form 16
Form 16A


.....................also known as the Annual Information Statement (AIS) can be generated on the income tax portal and it provides the details of income earned along with the TDS deducted thereron.

Form 16
Form 16A
Form 26AB
Form 26AS


Difference between 26AS and AIS

Annual Information Statement (AIS) is the extension of Form 26AS. Form 26AS displays details of property purchases, high-value investments, and TDS/TCS transactions carried out during the financial year. AIS additionally includes savings account interest, dividend, rent received, purchase and sale transactions of securities/immovable properties, foreign remittances, interest on deposits, GST turnover etc. 

AIS also provides the taxpayer the option to give feedback on the transactions reported. Further, the aggregation of transactions on information source level is also reported in Taxpayer Information Summary (TIS).


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