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A Guide to Preparation, Submission, Correction and Penalties of TDS Returns

Liability to file e-TDS Returns
The following assessees are required to deliver their TDS return in electronic form as per Section 206 of the Income Tax Act:
· All Government deductor/collector.
· All Corporate deductor/collector.
· All deductor/collector who are liable to get accounts audited under section 44AB in the immediately preceding financial year.
· Where the number of deductee records in a statement for any quarter of the financial year is equal to or more than twenty.
All other assessees except the ones mentioned above can file their return either in physical form or via the electronic form.

How to prepare e-TDS Return
e-TDS returns are prepared using a Return Preparation Utility (RPU). There are many third party software and services available in the market that can aid you in preparing and filing the e-TDS return. To assist in preparation of e-TDS returns, the government has also launched a TDS Return Preparation Utility that can be downloaded from the NSDL website without any cost.You may also file correction return using the TDS-RPU provided by NSDL.

Submission of TDS Returns
While electronically filing the e-TDS return, the assessee needs to digitally sign the form. In case of e-filing of TDS return, a token number is generated instantly and that can be used as an acknowledgement receipt. In case any discrepancy is found in the return, a non-acceptance memo is issued stating the reasons for rejection.
The assessee can also physically submit the return in a CD or a pendrive accompanied by a signed verification in Form No. 27A at any TIN-FC (Facilitaion Centres) opened by NSDL at various cities.
Following are the charges for furnishing e-TDS return:

No. of deductee records in e-TDS/TCS return Upload charges (exclusive of service tax)
Returns having up to 100 records Rs. 31.15
Returns having 101 to 1000 records Rs. 178
Returns having more than 1000 records Rs. 578.50

Correction of TDS Returns
In case of any errors in the original TDS return, you can file a correction return that can be prepared with the help of any RPU. The fee applicable for the correction return is also the same. An assessee can file a correction return as many times as he wants. There is no due date or time limit for filing correction returns.
Penalty provisions in case of Late Filing or Non-Filing of TDS Returns
In case of late filing of TDS return, a penalty of Rs. 200 per day is applicable subject to maximum of total amount of tax deducted.
In case of non filing of TDS return within 1 year from the due date, the penalty applicable is minimum Rs. 10,000 and maximum Rs. 100000 as decided by the AO.

By Udyog Software Marketing Team

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