The article will tell us some of the duties of TDS deductor who is deducting the tax and deposit to the government account is required to follow:
- Tds Deductor is required to deduct tax at correct rate and deposit it in Government Account
Every person is responsible for deducting the tax at source, at the time of payment or of the credit of income, whichever is earlier, verify that whether the payment that is being made is to be subject to deduction of tax at source. If it is so, then he must deduct such tax as per the prescribed rates. Further, he is also required to deposit such tax deducted in the Central Government Account within the prescribed time as which is specified in Rule 30.
- Issue a TDS certificate
Further, such person after collection of the TDS is required to issue a certificate of tax deduction at source u/s 203 to the person from whose income the TDS has been done, in the prescribed format i.e. the Form.16A within the prescribed time.
- File the Prescribed Return
A TDS return is a comprehensive statement which contains the details of the payments that are made and the taxes that are deducted thereon along with other prescribed details. For the deductions made prior to 01.04.2005, earlier every deductor was required as per the provisions of Section 206 (read with Rule 36A and 37) to prepare and to deliver an annual return, of tax deducted at source. However w.e.f. 01.04.2005 the requirement to file annual returns is no longer necessary and instead of that, quarterly statements of TDS are to be submitted in form 26Q by the deductors.
- Quarterly statement of TDS
The provisions of the quarterly statements of TDS have been introduced in the vide section 200(3) w.e.f. 01/04/2005. TDS Deductor is responsible for deducting tax is required to file quarterly statements of TDS for the quarters that end on 30th June, 30th September, 31st December and 31st March in each Financial Year. This statement, however, is to be prepared in Form No.26 Q for TDS other than the salaries, Form No.27 EQ ( for Tax collection at source) and 24Q( for salaries) (relevant rule 31A and 31AA) and it is to be delivered to the prescribed income-tax authority or the person who has been authorized by such authority on or the before the 15th July, the 15th October and the 15th January in respect of the first 3 quarters of the Financial Year and on or before the 15th June following the last quarter of the Financial Year. However, the statement of last quarter in form 27EQ can be furnished by 30th April.
In case you are confused about TDS Return Filing as a deductor, feel free to consult the experts at LegalRaasta. You can get comprehensive assistance with our TDS Return filing software which supports TDS on Salary payments Form 24Q, Rent, Interest, Commission and other Non-salary transactions (Form 26Q), NRI (Form 27Q) and TCS Form27EQ.