Startup TDS Return Filling - Startup-Movers

1. TDS RETURN Tax Deducted at Source, as the name signifies, refers to deduction of tax from the source of income. The details furnished in the TDS Returns are captured in Form 26AS for the deductee, basis which they can avail the credit of the TDS, while filing their Income Tax Returns. LEGAL PROVISIONS OF TDS TIME OF DEDUCTION TDS is generally required to be deducted at the time of payment getting due or actual payment, whichever is earlier. DUE DATE OF PAYMENT Tax deducted up to the month of February (in a Financial Year) is required to be deposited on or before 7th of the next month. However, tax deducted in the month of March can be deposited on or before 30th April of the financial year immediately following the financial year in which tax has been deducted. FILING OF RETURNS After deducting and remitting the taxes to the Central Government, the deductor is required file a statement with the Income Tax Department showing the details of taxes deducted and deposited during a particular period to substantiate that the quantum of taxes deposited is in line with the taxes deducted. This statement is known as TDS Return. NON-DEPOSIT OF TDS The failure to remit TDS in the government’s account within stipulated time-limit would attract interest, penalty and rigorous imprisonment of up to seven years. DUE DATE OF FILING RETURNS TDS Returns are required to be filed quarterly. FORMS FOR FILING RETURNS TDS Returns are filed in the various forms depending on the purpose of deduction. Following forms are available for TDS Return filing: PROCESS OF FILING TDS RETURNS Step by Step procedure to file TDS Returns is as follows: 1.Preparing TDS Return 2. Generating FVU Fill e-TDS Return is required to be prepared (using departmental utility or third-party software) in clean text ASCII format with ‘.txt’ as filename extension. Verify the prepared file using the File Validation Utility (FVU) provided by NSDL. In case file has any error, FVU file will give its report. Rectify the errors and verify the file again through FVU.

2. 3. Submission of FVU File Generated .fvu file can be submitted at TIN-Facilitation Centre or uploaded at www.incometaxindiaefiling.gov.in website using TAN based login feature of the e-filing portal. Request for downloading TDS certificates is required to be submitted on traces portal. Deduct or is liable to download and issue TDS certificates in Form 16/16A to the deducted. These certificates serve as a proof that the deductor has deducted and deposited the taxes with the government and TDS credit can be accordingly claimed by the deductee. 4. Downloading TDS Certificates DOCUMENTS REQUIRED TO FILE TDS RETURNS Basic details or documents which are required by the deductor to file TDS Returns include the following: PAN of the deductor PAN DETAILS PAN of the deductee. PAN Amount of taxes paid to the government TAXES PAID TDS Challans (They reflect the basic details pertaining to taxes paid) TDS CHALLANS DSC of the Authorised Signatory DSC Who should get this registered? TDS Returns are required to be filed by every person who is deducting taxes. Every person includes Companies, Limited Liability Partnerships, Partnership Firms, Individuals etc. who have a valid Tax Collection and Deduction Account Number (TAN). Why should you get this registered? The delayed or Non-filing of TDS returns have following consequences:  Delayed filing of TDS return attracts late filing fee @INR 200 per day subject to maximum amount of TDS is required to be paid. A.O. may levy penalty to the tune of INR 10,000 which may extend to INR 100,000 if a person fails to file or incorrectly files the TDS Statement.  Source: https://www.startup-movers.com/tds-return/