July 16, 2016

TDS Returns

What is TDS?

TDS stands for Tax Deducted at Source and it is the tax which is paid in advance by person responsible for making payments in the form of salary, contract payment, dividends, etc. to Government as per income tax slab rate. Person deducting the tax is known as deductor and the person whose tax is being deducted is known as deductee. Recipient of income receives the net amount (after deducting TDS) which may be in the form of cash or cheque or credit in payee’s account.

Payee does not need to pay tax if he gives investment proof to his employer for claiming deductions and his total taxable income is below taxable limit.

What is a TAN?

Person responsible for deducting TDS must apply for allotment of Taxpayer Identification Number (TAN) which is 10 digit alpha numeric numbers, within one month from the end of the month in which tax was deducted. Once it is issued it is valid for lifetime.

What is a TDS Return?

TDS return is a quarterly statement submitted to Income Tax Department and is required to be submitted by deductor. Return contains the details of TDS deducted and deposited by deductor, PAN of deductor and deductee, TDS challan information, etc. There are different TDS forms which are prescribed depending upon purpose of deducting TDS.

Forms Particulars
Form 24Q TDS on Salary
Form 26Q TDS on payments other than salary
Form27EQ Statement of Tax Collection at Source

What is the due dates for filing of TDS Returns?

Qtr Period TDS Return Due date
Q1 1st April to 30th June 31st July
Q2 1st July to 30th September 31st October
Q3 1st October to 31st December 31st January
Q4 1st January to 31st March 31st May
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