TDS Return Filing

TDS Return Filing with Easy My Tax

Tax Deducted at Source (TDS) is a way for the government to collect tax at the time income is earned rather than at a later date. When a payment is made for services such as salary, rent, professional fees, or contract work, the person making the payment (called the deductor) must deduct a certain percentage as tax and deposit it with the government.

Entities and individuals responsible for deducting TDS must file quarterly TDS returns. These returns include details of the payments made and taxes deducted. Filing TDS returns on time is mandatory under the Income Tax Act, 1961, and helps the government track tax collections efficiently.

At Easy My Tax, we make the TDS return filing process smooth and stress-free. Our experts guide you through the entire process, from deduction to deposit and filing, so you can focus on your business while staying compliant.

What is TDS and why it matters

TDS is deducted at the source of income. Instead of waiting for the recipient to pay tax, the government collects it in advance through the payer. For example, when a company pays a salary or professional fee, it must deduct TDS and deposit it to the government.

This ensures timely tax collection, reduces evasion, and provides a clear record of tax paid for both the payer and the recipient. TDS returns must be filed quarterly to report all such deductions.

Who should deduct TDS

TDS must be deducted by:

• Individuals or HUFs (Hindu Undivided Families) if their accounts are audited under Section 44AB
• Companies, firms, LLPs, and other legal entities
• Government offices making payments to vendors or professionals

Anyone required to deduct TDS must apply for a TAN (Tax Deduction and Collection Account Number). Without a TAN, TDS deductions and filings cannot be made.

Common payments where TDS is applicable

TDS is applicable on the following types of payments if they exceed specific threshold limits:

• Salary
• Rent
• Professional or technical service fees
• Contractor and sub-contractor payments
• Commission or brokerage
• Interest (other than securities)
• Payments to non-residents
• Insurance commission

TDS thresholds for FY 2024–25

• Rent (Section 194I): Above ₹2,40,000 per year
• Professional fees (Section 194J): Above ₹30,000 per year
• Contractor (Section 194C): ₹30,000 per payment or ₹1,00,000 in total per year
• Interest (Section 194A): Above ₹40,000 (₹50,000 for senior citizens)
• Salary (Section 192): If the employee’s income exceeds the basic exemption limit

TDS rates for key payments

• Salary: As per income tax slab rates
• Interest (194A): 10%
• Contractor payments (194C): 1% (Individual/HUF), 2% (others)
• Rent (194I): 2% for machinery, 10% for land/building
• Professional services (194J): 10%

These rates can change based on government notifications, so it’s important to stay updated.

TDS deposit due dates

TDS deducted must be deposited with the government by the 7th of the following month. For deductions in March, the due date may be April 30 for some cases.

TDS return filing due dates (FY 2024–25)

Filing after the due date attracts penalties and interest, so timely filing is essential.

Forms used for TDS return filing

• Form 24Q: TDS on salary payments
• Form 26Q: TDS on non-salary payments to residents
• Form 27Q: TDS on payments to non-residents
• Form 27EQ: Statement of tax collected at source (TCS)

Each form must be filed quarterly, based on the type of payment made.

Penalties for non-compliance

• Interest at 1% per month for late deduction
• Interest at 1.5% per month for late deposit
• Late filing fee of ₹200 per day, up to the amount of TDS
• Penalty equal to the amount of TDS if not deducted or deposited

Details required for TDS return filing

Before starting the TDS return filing process, keep the following ready:

• TAN of the deductor
• PAN of the deductor and all deductees
• Payment details and TDS challan information
• Type of entity (individual, firm, company, etc.)
• TDS deduction dates and amounts
• Financial year and quarter of filing

Step-by-step process to file TDS return online

1. Collect all required details and documents
2. Choose the correct TDS form based on payment type
3. Download the TDS Return Preparation Utility (RPU) from the TRACES website
4. Prepare the return using RPU by entering challan, deductor, and deductee details
5. Validate the file using the File Validation Utility (FVU)
6. Generate the .fvu file and log in to the income tax portal
7. Upload the file and attach a Digital Signature Certificate if required
8. Receive the acknowledgment and save it for your records

Easy My Tax can handle this entire process for you, reducing your workload and ensuring accuracy.

Revised TDS returns

If any error is found in the original TDS return (such as wrong PAN, challan details, or amounts), you must file a revised return. This can be done only after the original return is accepted by the TIN system. Use the consolidated TDS file from TRACES to prepare the correction statement.

Claiming TDS credit

Deductees can claim the TDS amount while filing their income tax return. To ensure the credit is reflected correctly in Form 26AS, the deductor must file accurate TDS returns. Any mismatch may result in denial of credit or delay in tax refund.

Why choose Easy My Tax for TDS return filing

• End-to-end expert assistance with TAN registration, TDS payment, and filing
• Error-free return preparation using the latest formats
• Timely submissions to avoid penalties and notices
• Help with revised return filing in case of any error
• Support for individuals, startups, businesses, and professionals

Get started with Easy My Tax

Whether you are a salaried employer, business owner, or freelancer, Easy My Tax is here to simplify your TDS compliance. Let us manage the technicalities while you stay focused on your core work.

Start your TDS return filing today with Easy My Tax — simple, fast, and compliant.