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What is TDS?
The concept of "Tax Deducted at Source", commonly known as TDS has been introduced to ensure a regular flow of revenue to the Government. The payer of income is required to deduct tax from certain payments at the prescribed rates and deposit it to the credit of the Central Government within the prescribed time.
What is the TDS statement?
The person responsible for the deduction of tax at source is required to file a statement of TDS on or before the due date specified on this behalf. These statements shall be filed in prescribed formats quarterly except for tax deducted under Section 194-IA, section 194-IB, section 194M, and section 194S.
How to file the TDS statement?
The statement of TDS can be filled in any of the following modes:
a) In Paper Form
b) Electronically under Digital Signature
c) Electronically along with verification of the statement in Form 27A or verified through an electronic process.
However, the following persons are not allowed to furnish a statement of TDS in paper form:
• A Government Office
• A Company
• A deductor who is required to get his accounts audited under section 44AB in the immediately preceding the financial year
• If the number of deductees in the statement is 20 or more.
What are the various forms and due dates for furnishing TDS returns?
| Filing of TDS Statement in | To be filed for tax deducted under | Due Dates for | |||
| Q1 | Q2 | Q3 | Q4 | ||
| Form 24Q | section 192 (Salary) and section 194P (Pension and interest income of senior citizen) | 31st July | 31st October | 31st January | 31st May of Next Year |
| Form 26Q (for payment to resident) | section 192A to 196D (other than section 194P) | 31st July | 31st October | 31st January | 31st May of Next Year |
| Form 26QF (by Exchange) | section 194S (VDA) | 31st July | 31st October | 31st January | 31st May of Next Year |
| Form 27Q (for payment to a non-resident) | section 192A to section 196D | 31st July | 31st October | 31st January | 31st May of Next Year |
What are the consequences of failure to furnish a TDS return?
If an assessee fails to deliver the TDS statement on or before the due date then a fee at the rate of Rs. 200 per day under section 234E will be charged for every day of default. However, the fee shall not exceed the amount deductible. If the deductor doesn't suo-moto pay the amount of late filing fees, it shall be calculated at the time of processing of the TDS statement.
Besides late filing fees under section 234E , a person, who fails to file the TDS statement or does not file it by the due dates, may be liable to pay a penalty under section 271H.