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Rest easy knowing your TDS compliance is in capable hands with the Apki Return team. We ensure complete adherence to regulations, providing peace of mind and reliability.
(Subject to the Timely Submission of All Documents)
Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are two mechanisms for tax collection in India. TDS involves a deductor withholding tax from a payee at the time of payment for specified transactions. TCS, on the other hand, is collected by the seller from the buyer at the point of sale for certain specified goods or services. Both methods are designed to collect tax at the source of income generation or transaction, ensuring a steady revenue stream for the government and simplifying tax compliance.
TAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number issued by the Income Tax Department. It is required by all entities that are responsible for deducting or collecting tax at source, under the Indian Income Tax Act, 1961. TAN is used in all TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) transactions. It must be quoted in TDS/TCS return, any TDS/TCS payment challan, and all TDS/TCS certificates. Entities that need to deduct or collect tax at source must apply for a TAN. The application for allotment of TAN is filed using Form 49B and can be made either online.
Individual Business
PAN card, Aadhaar card, GST Number (if any)
Partnership Business
PAN card of the firm, partnership deed, GST Number (if any)
Company
PAN card of the company, company incorporation certificate, Memorandum and Articles of Association, GST Number (if any)
Non-resident Business
PAN card of the non-resident, passport, Aadhaar card or any other proof of address, bank account statement or cancelled cheque, passport-size photograph
TDS (Tax Deducted at Source) quarterly return filing is a mandatory procedure in India for businesses and individuals responsible for deducting tax at source. The process involves submitting a summary of all the TDS transactions occurred during a quarter.
TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) Due Dates
| TDS Due Dates | TCS Due Dates |
|---|---|
| 1st Quarter (April-June): Due by July 31st | 1st Quarter (April-June): Due by July 15th |
| 2nd Quarter (July-September): Due by October 31st | 2nd Quarter (July-September): Due by October 15th |
| 3rd Quarter (October-December): Due by January 31st | 3rd Quarter (October-December): Due by January 15th |
| 4th Quarter (January-March): Due by May 31st | 4th Quarter (January-March): Due by May 15th |
Failure to file on time or filing incorrect returns can lead to penalties. This includes late filing fees (Rs. 200 per day) and penalty ranging from Rs. 10,000 to Rs. 1,00,000 u/s 271H of the Income Tax Act.
Filing TDS and TCS returns accurately and on time is crucial to avoid penalties and ensure smooth tax compliance. However, mistakes can happen. Here are some common errors encountered in TDS and TCS filing and how to rectify them:
Remember, prompt action is key to correcting errors and minimizing penalties. Stay updated on regulatory changes and file your TDS and TCS returns accurately to ensure smooth tax compliance.
Revision is required if there are mistakes in details such as PAN, amount of tax deducted, tax deposit details or any other relevant data.
The revision must be done using the same form as originally used for filing the TDS return. For example, if Form 24Q was used for salary TDS, any revision must also be done using Form 24Q.
Revisions are generally done online through the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal or through the portal of an authorized intermediary.
To revise a TDS return, you need to file a correction statement. This statement is similar to the original TDS return but contains the corrected information.
The correction statement should include the details of the original TDS return such as the original receipt number of the TDS return, the financial year, the type of payment, etc.
Before submitting the revised return, it’s important to validate the details to ensure all corrections are accurately reflected.
If the revision leads to additional tax being payable, this amount should be deposited before filing the correction statement. After submission, the revised return needs to be approved by the assessing officer.
The correction statement can be filed at any time after the original return is processed, but it’s advisable to do it at the earliest to avoid interest or penalties.
If necessary, more than one revision of a TDS return for the same quarter is allowed.
Form 16 and Form 16A are crucial documents in the Indian tax system, related to the Tax Deducted at Source (TDS). They are issued by employers and other entities that deduct TDS, serving as certificates that validate the deduction of tax at source from a payment made to an individual. Understanding these forms, along with their generation process, is important for both the deductor (employer or payer) and the deductee (employee or payee).
Form 16 is a TDS certificate issued by employers to their employees. It contains details of the tax deducted by the employer from the salary income and deposited with the Income Tax Department.
Part A: Contains details of tax deducted and deposited quarterly, PAN of the deductor and deductee and other relevant details.
Part B: Provides a detailed breakup of the salary paid, other income declared by the employee, deductions claimed, and the total tax payable or refundable.
Form 16A is a TDS certificate applicable for TDS on income other than salary. This includes payments like interest from banks, rent, commission, professional fees, etc.
It details the nature of payment, the amount paid, and the TDS deducted and deposited with the government.
Form 26QB is the challan-cum-statement for TDS on property transactions.
Form 16B acts as a TDS certificate for TDS deducted on property sale.
Varies based on the form and tax period. Usually within 15 days after the end of the quarter. Late filing attracts penalties.
Yes, online filing through the official e-filing portal is mandatory for most entities.
Penalties and interest on unpaid taxes. In severe cases, legal action can be taken.
File correction statements through the e-filing portal with revised information.
You can apply for a refund through challan or adjust in subsequent returns.
You can consult a tax advisor or accountant, refer to the official e-filing portal resources, or contact the Income Tax Department for assistance.
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