Nasamon Consultants : TDS Returns & Refunds

TDS Returns & Refunds

Individuals whose tax at source on specific income has been deducted and filed with the government are required to file for TDS returns. Typically, such a return is required to be filled within a stipulated period along with essential details related to the tax deduction, the deductor and the deductee, among others.

FAQs on TDS Return

TDS return can be best described as the quarterly statement or summary of all TDS-related transactions made during the specific quarter. Typically, it comprises details of the TDS collected and deposited to the Income Tax Authority by the deductor. The essential details disclosed in a TDS return statement include the following –

• Deductor and deductee’s PAN.
• Particulars of TDS paid
• Challan details

Notably, all details included in the online TDS return form are also disclosed in the payee’s Form 26AS. It is mandatory for all individuals who come under the purview of tax slabs prescribed by the IT department.
Typically, eligible individuals can file TDS returns through the IT department’s e-filing portal. In case one fails to file TDS returns within 1 year of filing from the due date, he/she must pay at least Rs.10000 as a penalty for delaying the process.
Similarly, the penalty has to be paid in case one furnishes incorrect information. Notably, Section 234 states that if a taxpayer fails to file TDS return within the due date, he/she must pay a penalty of Rs.200 each day until filed. Regardless, the total

Employers and organisations with a valid TAN are qualified for filing TDS returns. Individuals whose accounts are audited under Section 44AB, and hold an office under the government or companies are liable to file online TDS returns every quarter.
It means that the deductor can be – an individual, group of individuals, HUFs, limited companies, local authorities, an association of individuals, partnership firms, etc.

As per ITA, TDS is filed against these following pay-outs -

• Salary income
• Income on securities
• Insurance commission
• Pay-outs towards NSC
• Earnings generated on winning horse race
• Earnings generated on winning a lottery, puzzles, etc.

Income generated through – salaries, professional fees, commission, rent, interest earned, etc. are subject to TDS deductions. The rate of TDS levied on the earnings is based on the source of income and the total revenues generated.
In simple words, different types of income are subject to a different rate of TDS. It must be noted that tax is paid on the excess amount earned after the maximum threshold level is obtained. Generally, TDS rate ranges between 1% and 30% and relies heavily on the amount of income taxed.

Some of them are listed below:

• Easy loan approval
• Income and Address Proof
• Quick Visa Processing
• ITR filing online ensures speedy income tax refund
• Acts as proof of income and address
• Losses can be Carried Forward
• For buying term insurance
• Avoid penalty on non-filing of income tax returns

TDS Return Forms

The table below offers a fair idea about the different TDS return forms and their application.

S.No	Type of Form	Purpose
1.	24Q	It serves as a statement of tax deducted at source on salaries.
2.	26Q	This form serves as a statement of tax deducted at source on non-salaried income.
3.	26QB	It serves as a statement of tax deducted against the payment of the immovable property.
4.	27Q	It is a certificate of tax deducted at source on interest, dividend payable to NRIs, and foreign companies.
5.	27EQ	This document is a statement of TCS.