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TDS (Tax deducted at source) is an advance tax deducted from an individual’s income before the amount is paid or credited to the receiver’s account. In other words, TDS is the amount of tax that the payer deducts from the amount against the payment of the services as specified in the Income Tax Act. This helps increase the government’s revenue and minimize tax evasion.
The TDS deductor or the TCS collector must submit a TDS return every quarter. These TDS returns can be submitted in various forms depending on certain conditions. This guide is a comprehensive resource that consists of all that you must know about TDS returns and the various TDS forms available.
Every person making specified payments mentioned under the income tax act is required to deduct TDS at the time of making such specified payments.
TDS returns are quarterly statements that contain the information pertaining to TDS deducted and deposited. It is submitted by the person deducting TDS, i.e., TDS deductor, to the income tax department.
Different forms have been prescribed for filing TDS returns depending upon the nature of the TDS deduction, such as
| FORM | PARTICULARS |
|---|---|
| Form 24Q | The quarterly statement for tax deducted at source (TDS) from “Salaries.” |
| Form 26Q | The quarterly statement for tax deducted at source in respect of all payments except ‘salaries.’ |
| Form 27Q | Quarterly statement of deduction of tax from interest, dividend, or other sum payable to non-residents or foreign companies. |
| Form 26QB | Statement of TDS deducted against the payment made for immovable property. |
| Form 26QC | It is a challan cum statement of deduction of tax u/s 194-IB against the tax deducted on the rent of the property. |
| Form 27EQ | Quarterly statement of collection of tax at source (TCS) |
Form 24Q is a statement for deduction of tax at source under Section 200(3) of the Income Tax Act. It is a quarterly statement that is filed by the deductor, i.e., an employer, who deducts tax at source while making payments to employees. This form is specifically used for the deduction of tax on salary income.
The form requires details such as the PAN (Permanent Account Number) of the deductor and the deductee, salary details, tax deducted at source (TDS) details, and other relevant information. The deductor is required to submit Form 24Q to the Income Tax Department.
There are different variants of Form 24Q, such as Form 24Q-Q1, Form 24Q-Q2, Form 24Q-Q3, and Form 24Q-Q4, which correspond to the different quarters of the financial year. Each form is filed for the respective quarter in which TDS on salary has been deducted. It is essential for employers to comply with the filing of Form 24Q to ensure accurate reporting of TDS on salary payments.
Form 26Q is a quarterly statement of deduction of tax u/s 200(3), 193, and 194 of the Income-tax Act in respect of payments other than salary for the quarter ended.
| Section | Nature of payment |
|---|---|
| 193 | Interest on securities |
| 194 | Dividend |
| 194A | Interest other than interest on securities |
| 194B | Winning from lotteries and crossword puzzles |
| 194BB | Winnings from horse race |
| 194C | Payment of contractor and subcontractor |
| 194D | Insurance commission |
| 194EE | Payment in respect of deposit under (NSS) national saving scheme |
| 194F | Payments on account of repurchase of units by mutual funds or UTI |
| 194G | Commission, prizes, etc., on sale of lottery tickets |
| 194H | Commission or brokerage |
| 194I(a) | Rent |
| 194I(b) | Rent |
| 194J | Fees for professional or technical services |
| 194LA | Payment of the Compensation on acquisition of certain immovable property. |
| 194LBA | Certain income from compensation on acquisition of certain immovable property |
| 194DA | Payment in respect of life insurance policy |
| 194LBB | Income in respect of units of investment fund |
| 194IA | Payment on transfer of certain immovable property excluding agriculture land |
| 194LC | TDS on income by way of interest from an Indian Company or a business trust |
| 194LD | TDS on income by way of interest on certain bonds and Government Securities |
| 194LBC | Income in respect of investment in securitization trust |
| 192A | Payment of accumulated balance due to an employee from the trustees of the Employees’ Provident Fund Scheme, 1952 |
| 194N | TDS on cash withdrawal in excess of Rs 1 crore |
| 194M | TDS on payment to resident contractors and professionals |
| 194O | TDS on E Commerce Transactions under Section 194O with effect from 01st April 2020 |
Form 27Q is a quarterly statement of deduction of tax u/s 200(3) of the income tax act in respect of payments other than salary made to non-residents and foreigners for the quarter ended.
The income sources on which TDS is deducted include interest income, bonus, and other sums owed to an NRI.
As per Section 194-IA of the income tax act, TDS applies to the sale of immovable property wherein the sales consideration of immovable property is more than Rs 50 lacs.
As per Section 194IB, individuals and HUFs who pay rent exceeding Rs 50,000 will have to deduct TDS @5% of the total rent.
When the seller collects tax from the buyer and pays it to the government. If the seller collects any such TCS, he/she is required to file Form 27EQ on a quarterly basis under section 206C of the Income Tax Act.
All the Corporates, the Government, and all Tax collectors are required to submit Form 27EQ.
TCS is collected on the following -
TDS return forms can be downloaded from tin-nsdl official website. To download forms, follow this process
Here are the steps for filing TDS Return Online -
The TDS due dates for TDS return varies depending on the quarter. Below are the TDS due dates in a financial year -
Due date of filing 24Q, 26Q, 27Q-
| Quarter | Due date |
|---|---|
| April to June | 31st July |
| July to September | 31st October |
| October to December | 31st Jan |
| January to March | 31st May |
Due date of filing of Form 26QB-
The purchaser of property i.e. deductor has to file Form 26QB online. It is a Challan cum declaration statement which needs to be filed within 30 days from the end of the month in which payment or deduction was made. In respect of such deduction no separate TDS return is to be filed.
Due date of filing of Form 26QC-
You have to pay tax online via Form 26QC, which is a challan-cum-payment form within 30 days from the end of the financial year or the day on which the property is vacated For instance, if tax is deducted in March, the last day to deposit the tax and file 26QC will be 30 April 2020.
Due date of furnishing of Form 27EQ-
| Quarter | Due date |
|---|---|
| April to June | 15th July |
| July to September | 15th October |
| October to December | 15th January |
| January to March | 15th May |
Filing the TDS (Tax Deducted at Source) return on time offers several advantages:
If the assessee fails to file the TDS return on the due date of furnishing the return, then the assessee is liable to pay the penalty of Rs 200 per day till the time default continues. Also, the total penalty shall not exceed the TDS amount.
A TDS certificate is required to be issued by the person deducting TDS to the assessee from whose TDS was deducted.
Different TDS certificates and their due dates-
| Form no. | Description | Periodicity | Due date |
|---|---|---|---|
| Form No. 16 | TDS from salary | Annual | On or before June 15 of the financial year immediately following the financial year in which tax is deducted or such date to be extended by the income tax department. |
| Form no. 16A | TDS from other than Salary | Quarterly | Upto 15 days from the due date of furnishing quarterly TDS returns |
| Form No. 16B | TDS u/s 194-IA | Within 15 days from the due date of furnishing challan in Form No. 26QB | |
| Form No. 16C | TDS u/s 194-IB | Within 15 days from the due date of furnishing challan in Form No. 26QC | |
| Form No. 27D | Certificate for TCS return | Quarterly | Within 15 days from the due date of furnishing quarterly TCS returns. |
Hope this guide helped you get a broad insight into TDS returns, TDS forms, their deadlines, and filing procedures. If you still feel confused and find it intimidating to file your TDS returns, the best idea is to get professional help. If you want to file your TDS return, Tax2win’s eCA service can be your best bet. Our eCA’s are highly experienced and qualified and committed to making sure you find taxes as easy as a breeze. Hire an eCA now and simplify your taxes!
No, a challan cum statement is filed in Form 26 QB; no separate return needs to be filed.
Challan 281 is used for depositing TDS or TCS by corporates as well as non corporates . Taxpayers can file challan 281 online as well as offline.
Form 26QB statement cum challan can be filed along with payment of tax under Form 26QB in “TDS on sale of property” on the NSDL portal.
Form 24Q is to be filed and submitted for return of tds deducted on salary payments, whereas Form 26Q is to be filed and furnished for tds details on payments other than salary.
