Tax Deducted at Source (TDS) is a method of collecting income tax under the Indian Income Tax Act, 1961. Payments covered under TDS, are paid after deducting the prescribed percentage. A TDS return is required to be filed quarterly. It is compulsory to file an e-TDS return by the assessee who has deducted the TDS. TDS deducted is deposited to the government by submitting an ‘income tax challan’ along with the payment.
The following TDS Forms are prescribed to be filed based on the purpose of deduction:
- Form 24Q: Statement of tax deducted at source from the salary
- Form 26Q: Statement of tax deducted at source on all payments except salary.
- Form 27Q: Statement of tax deducted at source from interest, dividends, or any other sum payable to non-residents.
- Form 28Q: Statement of a collection of tax at source.
Registering for e-filing of eTDS return:
- Log on to TRACES with the details of the assessee
- Click the’ Register as a new user’ option
- The e-filing portal will appear and you will be required to register (as tax deducted and collector) by using your TAN no. as the default id.
- Create a password and provide details of the Authorized Person and other basic information of the registered office.
- Now log into the e-filing portal, of the income tax department and approve the TAN registration.
- After approval, a link will be sent to your email and a PIN will be sent to your registered mobile number.
- After clicking on the link sent to your email id and providing the PIN you will be registered.
Filing TDS return:
- Input e-TDS return data in software (or in the Return Preparation Utility provided by the NSDL) and process the same. RPU can be downloaded from the tin-NSDL website
- Upload the return to ‘e-filing’ portal of the ITD. This will generate a zip file of the processed return. Save the same.
- Go to the DSC management utility, choose the “bulk upload” option, attach the zip file created, input TAN of the assessee and PAN of the DSC holder. Choose the DSC option, select the digital signature certificate and generate a DSC file. Save the same.
- Now, log into the ITD portal with the deduction and collector’s login id and choose upload TDS return option from the TDS tab. Provide the required information like FVU version, financial year, quarter, form type etc.
- Attach the zip file created and the DSC file generated and click on submit.
- A token number will be provided to you after the submission which can be seen from the “viewed file return” option of the e-filing. Now the process of e-filing is complete.
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