Apply TDS Return Filing

TDS Return Filing

In India, TDS (Tax Deducted at Source) is a system where a person or entity (the deductor) making certain specified payments is required to deduct tax at source and deposit it with the government. A TDS return is a quarterly statement that the deductor files to summarize all the TDS transactions made during that quarter.

Who needs to file TDS returns?

Any person or entity that is required to deduct tax at source under the Income Tax Act, 1961, must file TDS returns. This includes:

Employers deducting TDS on salaries.
Businesses deducting TDS on payments like rent, professional fees, commission, interest, contractors, etc.
Government offices and Public Sector Undertakings (PSUs).
Individuals and Hindu Undivided Families (HUFs) whose accounts are subject to audit under Section 44AB of the Income Tax Act.
Individuals and HUFs deducting TDS on certain payments like rent exceeding a specified limit (Section 194-IB), payments to contractors/professionals exceeding ₹50 lakhs (Section 194M), or sale of immovable property (Section 194-IA). (Note: For 194-IA, 194-IB, and 194M, PAN can be used instead of TAN, and a challan-cum-statement is filed instead of a full return).

Prerequisites for TDS Return Filing

TAN (Tax Deduction and Collection Account Number): This is a 10-digit alphanumeric number mandatory for all persons liable to deduct/collect tax at source. You cannot file TDS returns without a valid TAN.
Registration on Income Tax e-filing Portal: The deductor's TAN must be registered on the Income Tax e-filing portal.
Digital Signature Certificate (DSC) (Mandatory for some): For companies, government deductors, and those whose accounts are subject to audit, a registered DSC is mandatory for e-filing TDS returns. Others can use EVC (Electronic Verification Code).
PAN of Deductees: Ensure you have the correct PAN of all deductees from whom tax has been deducted.
Challan Details: Keep records of all TDS challans (Challan ITNS 281) with their Challan Identification Number (CIN), date of deposit, and amount.
Return Preparation Utility (RPU) and File Validation Utility (FVU): These are free utilities provided by the Income Tax Department (through NSDL/Protean eGov Technologies Limited) to prepare and validate the TDS statement file.

TAN Registration Process

This is the foundational step for TDS compliance.

Online Application for TAN (Form 49B):
- Visit the NSDL TIN website: https://tin.tin.nsdl.com/tan/.
- Select "Online Application for TAN (Form 49B)."
- Choose the "Category of Deductors" (e.g., Company, Individual/HUF, Government).
- Fill in Form 49B with accurate details, including the deductor's name, address, contact information, and PAN.
- Pay the application fee online (currently ₹65 + GST).
- An acknowledgement slip with a 14-digit acknowledgement number will be generated. Print and sign this slip.
- Mail the signed acknowledgement slip (no other documents required for online applications) to the NSDL address mentioned on the website, super-scribing the envelope with "APPLICATION FOR TAN - Acknowledgement Number."
Offline Application for TAN:
- Download Form 49B from the NSDL website or obtain it from a TIN Facilitation Centre (TIN-FC).
- Fill the form in duplicate and submit it along with the fee to any TIN-FC.
TAN Allotment: Once processed, the TAN will be allotted and sent to the registered address/email.
Registration on Income Tax e-filing Portal:
- Go to incometax.gov.in and click "Register."
- Select "Others" and then "Tax Deductor and Collector."
- Enter your TAN and proceed.
- Fill in the required details of the principal contact, contact information, and set a password.
- Verify using OTPs.
- Approve the registration (often requires logging in with the principal contact's PAN and approving a worklist item).

TDS Return Filing Process

The process is generally divided into two main stages: preparation and online submission.

Stage 1: Preparation of TDS Statement (Offline using Utilities)

Download Utilities: Download the latest "Return Preparation Utility (RPU)" and "File Validation Utility (FVU)" from the NSDL TIN website (https://www.tin.tin.nsdl.com/downloads/index.html).
Prepare TDS Statement using RPU:
- Open the RPU.
- Select the correct TDS return form (e.g., Form 24Q, 26Q, 27Q, 27EQ).
  - Form 24Q: For TDS on salaries.
  - Form 26Q: For TDS on non-salary payments to residents (e.g., rent, professional fees, interest, commission).
  - Form 27Q: For TDS on payments to non-residents (other than salary).
  - Form 27EQ: For TCS (Tax Collected at Source).
- Enter all mandatory details:
  - Deductor Details: TAN, PAN, Name, Address, Contact Info.
  - Challan Details: For each challan deposited – CIN, BSR Code, Date of Deposit, Amount.
  - Deductee Details: For each deductee – PAN, Name, Amount Paid/Credited, Date of Payment/Credit, Section under which TDS deducted, TDS Amount, Surcharge, Education Cess.
  - Annexures: For Form 24Q, quarterly Annexure-I and annual Annexure-II (for salary details, typically in Q4).
- Ensure data accuracy, especially PANs and challan details.
Generate XML File: Once all details are entered in the RPU, generate an XML file. This is the TDS statement.
Validate XML File using FVU:
- Open the FVU.
- Load the XML file generated from RPU.
- The FVU will validate the data for any errors (e.g., incorrect PAN format, missing mandatory fields, challan mismatch).
- If errors are found, the FVU will generate an error report. Rectify errors in the RPU and re-generate/re-validate until the file is error-free.
- Upon successful validation, the FVU will generate a .fvu file (and a .tds file in older versions). This is the file to be uploaded.

Stage 2: Online Submission of TDS Return (on e-filing Portal)

Login to e-filing Portal: Go to incometax.gov.in and log in using your TAN and password.
Navigate to Upload TDS:
- Go to e-File -> Income Tax Forms -> File Income Tax Forms.
- Under the "TDS" section, select the relevant TDS return form (e.g., Form 24Q, 26Q).
- Click "File Now."
Upload TDS Form:
- Select the Assessment Year.
- Select the Form Name (e.g., Form 24Q).
- Select the Quarter (Q1, Q2, Q3, Q4).
- Select the Upload Type ("Original" or "Correction" for revised returns).
- Attach the .fvu file generated from FVU.
E-Verify:
- Mandatory for Companies/Audited Entities/Government: Use your registered Digital Signature Certificate (DSC) to e-verify the uploaded file.
- Others: You can use Electronic Verification Code (EVC) through Aadhaar OTP, Net Banking EVC, or Bank Account EVC.
Submission and Acknowledgement:
- Upon successful upload and e-verification, a success message will be displayed, along with an acknowledgement number.
- You will receive a confirmation email. Keep the acknowledgement for your records.
- The details will reflect in the deductee's Form 26AS after processing.

Important Due Dates

There are separate due dates for depositing TDS and filing TDS returns.

1. Due Dates for Depositing TDS (Challan ITNS 281):

For non-government deductors: 7th of the next month (e.g., TDS deducted in April must be deposited by May 7th).
Exception for March: For TDS deducted in March, the due date is April 30th.
For government deductors (without challan): Same day as deduction.

Due Dates for Filing Quarterly TDS Returns:

QuarterPeriodDue Date (for FY 2024-25 / AY 2025-26)

Quarter 1April 1st - June 30thJuly 31st

Quarter 2July 1st - Sept 30thOctober 31st

Quarter 3Oct 1st - Dec 31stJanuary 31st

Quarter 4Jan 1st - March 31stMay 31st