All about TDS Returns and its Filing Procedure

Introduction

TDS is required to be deducted by a person for certain payments made by them. Every Assessee who has deducted TDS is required to file TDS Returns. TDS Returns are quarterly statements, which contain the information pertaining to TDS deducted and deposited. It is submitted by person who deducted TDS i.e. TDS deductor. However, it is important to remember that if a person has deducted TDS under section 194-IA (TDS on sale of property), 194-IB(TDS on rent by the persons who are not covered u/s194I), 194M (TDS on payment to resident contractor, broker and professionals by the person who are not covered u/s 194C, 194H and 194J respectively) and 194S (TDS on sale of virtual digital assets) then there is no requirement of filing Quarterly TDS Return rather challan cum statement is required to be filed which will be discussed further in this article.

TDS Forms

TDS Return Due dates

For Filing TDS Returns

For other Forms

Points to keep in mind while filing TDS Returns

• Make sure all the challans are paid on or before due date i.e. 7th of next month for e.g. if TDS deducted in October then due date for challan is 7th November. But it is important to remember that for the month of March, due date of deposit is 30th April.  
• If TDS is not deducted on due date i.e. date of invoice or payment whichever is earlier then interest shall be charged at the rate of 1%pm or part of the month from the date on which such tax was deductible till the actual date of deduction and if TDS deducted but not deposited by the due date, then interest shall be charged at the rate of 1.5%pm or part of the month from the date on which such tax was deducted till the actual date of deposit.
• Make sure PAN of deductee is valid and operative. If PAN is not available or it is invalid then TDS shall be deducted at the rate specified in respective TDS section or 20% whichever is higher. Similar in case of section 194O and 194Q if PAN is not available or it is invalid then TDS shall be deducted at 5%.
• Make sure that the latest version of RPU utility tool is used for filing TDS Returns.
• If any person has filed TDS Return earlier, then there must be acknowledgement number of previously TDS Return filed. For e.g. if person has filed TDS Return for Quarter 1 (April –June) then when he files TDS Return for next quarter (July –Sep) he must have acknowledgment number of previous return filed because it is required in RPU utility and without entering this it doesn't allow us to process further.
• There must be Java Software in system for filing TDS Returns.
• After filing TDS return we should check the status of TDS Return after 3 days either it is processed or not. 

How to file TDS form offline (26Q, 24Q and 27Q)?

• First, download the latest RPU utility from NSDL e-gov site and open it, remember it will open only in Java software.
• Then select "Form no." and type of statement to be prepared whether it is "Regular" or "Correction"
• Then you will get page, which is divided, into three section "Particular of the statement", "Particular of the deductor" and "Particular of the person responsible for tax". Enter all details related to these sections.
• Then go to "Challan" tab and enter all the challans details like TDS amount, BSR code, Date of challan, Serial no.
• Then go, "Annexure 1"Tab and enter the detail of deductee like section under which payment is made, PAN of deductee, Name of deductee, Amount paid or credited, date of deduction of TDS. However in case of filing form 27Q we need to enter some additional details like whether interest rate is per DTAA or Income Tax Act, Nature of remittance, Country of the residence of the deductee, whether deductee opting out of taxation regime u/s 115BAC(1A).
• After entering all the details Click "Create File" and upload the CSI file (Challan Status Inquiry) which will be downloaded from e-filing portal of respective period.
• After successfully create RPU file (txt) then we have to validate file from FVU utility tool and FVU file will get generated.
• Then, Log in to e-filing portal by using ID (TAN) and password.
• Go to 'e-File' tab, select option "File Income Tax Forms", and upload the FVU file earlier generated provided it should be converted into zip file.

How to file form 26QB/26QC/26QD/26QE?

• Go to Income Tax Portal and log in by using ID and Password.
• Then, Go to e-file tab and select e-pay tax and click on 'New payment'
• Now we can choose form that we require to file 26QB/26QC/26QD/26QE.
• After choosing required form enter the required details in given form

Once the TDS Return is processed without default we have to download some specified certificates and issued to the deductee, the detail of which are given below-:

Due Date of issuing TDS certificate

There is penalty of Rs. 100/- per day per certificate in case of delay downloading of TDS certificate.

How to file offline Correction in TDS Return?

Filing of correction return will be similar to the filing of Regular return filing but when we open RPU utility (which will be downloaded in the same manner as above mentioned) to file correction then for filing correction return we have to choose "Correction" in option "type of statement to be prepared" and once we choose this option then it demands console file which will be downloaded in the following way-:

• First log in to traces site by using TAN and password.
• Then, go to 'Statement' tab and select option "Request for Console File".
• Now we have two option either we can proceed further with 'Digital Signature Supported Validation' or 'Normal KYC Validation' (without digital Signature).
• If deductor DSC is registered then we can choose 1st option and Console file will be submitted and we will get request no. However if we choose Normal KYC Validation i.e. without digital signature then there is need to enter some details like Token number of Originally Return filed, Challan Details, and deductee detail.
• Then, Click on "Proceed with Transaction" and our Console file will be submitted and we will get Request no.
• Then, go to "Download tab" and select 'downloaded request' and we can download the Console File.
• It is important to remember that Console file require password to open

Conclusion

Every assessee who is required to file TDS Return must file their return on or before due date. If they don't file return within due date then they have to bear consequences of late filing of return u/s 234E i.e. Rs. 200/- per day till the default continues but this amount shall not exceed total amount of TDS deductible. Furthermore department may also levy a penalty of u/s 271H which shall not be less than Rs 10,000/- but which may exceeds to Rs.1,00,000/-. Therefore every assessee must ensure that TDS Return is filed on or before due date.