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TDS Filing

TDS filing is an important part of financial audit and compliance. It involves filing returns with the Income Tax Department to ensure that taxes are paid on time and accurately.

TDS Filing

Tax Deducted at Source or TDS is a source of collecting tax by Government of India at the time when a transaction takes place. Here, the tax is required to be deducted at the time money is credited to the payee’s account or at the time of payment, whichever is earlier.

In case of payment of salary or life insurance policy, tax is deducted at the time of payment. The deductor then deposits this TDS amount to the Income Tax (I-T) department. Through TDS, some portion of your tax is automatically paid to the I-T department. Thus, TDS is considered as a method of reducing tax evasion.

Tax is deducted usually over a range of 1% to 10%.

Due Dates for Payment of TDS
Amount paid/credited Due date of TDS deposit
Government Office
 Without Challan
With Challan 		Same Day
7th of next month
Others
 On perquisites opt to be deposited by employer
In month of March
In other months 		7th of next month
30th April
7th of next month

What is TDS Return?

Apart from depositing the tax, the deductor should also file a TDS return.

TDS return is a quarterly statement to be given to the I-T department. It is compulsory for deductors to submit a TDS return on time. The details required to file

TDS returns are:
  • PAN of the deductor and the deductee
  • Amount of tax paid to the government
  • TDS challan information
  • Others, if any

Eligibility Criteria for TDS Return

TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments :

  • Payment of Salary
  • Income by way of “Income on Securities”
  • Income by way of winning lottery, puzzles and others
  • Income from winning horse races
  • Insurance Commission
  • Payment in respect of National Saving Scheme and many others