Income Tax Return Filing
About Income Tax Return Filing
TDS is Tax Deducted on Source, the Government of India has prescribed certain transactions in which TDS is required to be deducted and is required to be deposited with the Government. The assessee is also required to file TDS Returns on Quarterly basis,CRP AND ASSOCIATES helps your calculate your TDS Liability on a monthly basis and file your returns on a quarterly basis.
Our scope of work
Transactions include Salary and Non-salary
What we do
> Preparation of TDS Working
> Preparation of TDS Return(s) (Quarterly).
> Issuance of Form 16A (Quarterly) / Form 16 (Yearly)
Know more about Income Tax Return Filing
Tax Deducted at Source or TDS
Tax Deducted at Source or TDS is a type of advance tax which is deducted from the earnings of an individual or an organization before the money is actually credited into that entity’s account, according to the Indian Taxation Code. The government is able to generate revenues by implementing the provisions of TDS on the earnings of individuals as well as businesses. Rules and regulations regarding TDS are controlled and governed under the Income Tax Act, 1961 by the Central Board of Direct Taxes (CBDT).
As the name suggests, “Tax Deducted at Source” implies that the payee or the employer deducts the tax before making a payment to the receiver. Tax Deducted at Source is applicable on income earned regularly and also on the income earned occasionally or irregularly. Thus, TDS is applicable on various incomes, including, but not limited to Salary, Commission, Rent, Professional Fees and Interest.
Advantages of payment of TDS
TDS is payable on the earnings so it is important to note that the liability to pay TDS is applicable only in the event of earnings actually taking place. TDS is deducted before making payments. Deductions are to be made on payments that are made in cash, cheque or credit. The amount deducted under TDS is further deposited with various government agencies. Payment of TDS has various advantages which are as follows :
> Deducting TDS at source prevents tax evasion.
> Tax collection is done duly and in a timely manner.
> A large number of people come under the tax net.
> Collection of TDS is a steady source of revenue for the government.
Rate of TDS deduction
TDS Rate Chart for FY 2019-2020 (AY 2020-2021)
| Section | Nature of Payment | TDS Rate for Individual/ HUF (Indian Resident)(in %) | TDS Rate for Non-Resident Indian (NRI) in India (in %) |
|---|---|---|---|
| 192 | Salary payment | As per the income tax category | As per the income tax category |
| 194B | Income earned through the winnings from card games, lotteries, and/or other games | 30 | 30 |
| 194BB | Income through winnings from horse racing | 30 | 30 |
| 194EE | Payment towards National Savings Scheme (NSS) deposits | 10 | 10 |
| 194F | Payment towards repurchase of units by Unit Trust of India or Mutual Funds | 20 | 20 |
| 194G | Income that arises from lottery tickets sales commissions and/or other transactions | 5 | 5 |
| 194LBB | Investment fund which pays income to the unit holder [except for incomes that are exempt under Section 10 (23FBB)] | 10 | 30 |
| 194LBC | Income generated from investments in securitisation trust (as per Section 115TCA) | 25 (for any other person – 30) | 30 |
Due Dates for filing TDS Returns
The following are the original due dates for filing TDS Returns for financial year 2018-2019 :
| Quarter | Quarter Period | Last Date of Filing TDS Returns |
|---|---|---|
| 1st Quarter | From 1st April 2019 to 30th June 2019 | 31st July 2019 |
| 2nd Quarter | From 1st July 2019 to 30th September 2019 | 31st October 2019 |
| 3rd Quarter | From 1st October 2019 to 31st December 2019 | 31st January 2020 |
| 4th Quarter | From 1st January 2020 to 31st March 2020 | 31st May 2020 |
TDS Return Forms: An Overview
As the deductor is liable to deduct tax and file the TDS Return form as the supporting document, it is important to note that there are various types of TDS Return Forms for different situations. The type of TDS Return Form to be submitted is based on the Nature of Income of the deductee or the type of deductee who pays the TDS.
| Type of TDS Return Forms | Particulars of the TDS Return Forms |
| Form 24Q | Statement for tax deducted at source from salaries |
| Form 26Q | Statement for tax deducted at source on all payments other than salaries. |
| Form 27Q | Statement for tax deduction on income received from interest, dividends, or any other sum payable to non residents. |
| Form 27EQ | Statement of collection of tax at source. |