File TDS Return for quarter ending on 31.12.2019 by 31.01.2020
Timely Deposit of TDS, filing of TDS Return and issuing TDS certificates is an important compliance for an organisation. Not doing this compliance can land you in big trouble as heavy penalty and even prosecution is there for the person who is not complying this mechanism properly.
We all are aware that It is mandatory for corporate deductors and government deductors to furnish their TDS returns in electronic form (e-TDS return).
Due date of filing TDS Return for quarter ending on 31.12.2019 is 31.01.2020.
Here are some FAQ’s on Filing of TDS Return.
How to File TDS Return?
- You must hold a valid TAN and it should be registered for e-filing
- Choose relevant Form applicable in your case (E.g. Form 24Q, Form 26Q, Form 27Q, etc.)
- Prepare TDS statements using Return Preparation Utility (RPU) and validate using File Validation Utility (FVU).
- There are two methods of uploading the returns.
- If you want to upload return in physical form, then each e-TDS return saved in a CD/Pen Drive has to be submitted along with a signed copy of Form 27A to TIN-Facilitation Centres (TIN-FC) established by NSDL
- If you want to upload TDS return online, then you need a valid DSC registered for Income Tax Portal.
How to upload TDS Return on Income Tax Portal?
Step 1: In e-Filing Homepage, Click on “Login Here”.
Step 2: Enter User ID (TAN), Password, and Captcha. Click Login
Step 3: Post login, go to TDS —-> Upload TDS.
Step 4: In the form provided, select the appropriate statement details from the drop down boxes for
- FVU Version
- Financial Year
- Form Name
- Quarter
- Upload Type
Note:
1. TDS can be uploaded from Financial Year 2010-11.
2. Only Regular Statements can be uploaded in e-Filing portal.
Step 5: Click Validate to Validate Statement details. Upload TDS Statement using DSC
Step 6: “Upload TDS ZIP file”: Upload the TDS/TCS statement (Prepared using the utility downloaded from tin-NSDL Website)
Step 7: “Attach the Signature file” Upload the signature file generated using DSC Management Utility for the uploaded TDS ZIP file. For further details on generating Signature file click here. Navigate to Step by Step Guide for Uploading Zip File (Bulk Upload)
Step 8: Click on “Upload” button. Once the TDS is uploaded, success message will be displayed on the screen. A confirmation mail is sent to the registered email id.
How to Download TDS Certificate?
- Form 16/Form 16A downloaded ONLY from TRACES are considered as valid TDS certificates, as per CBDT circular 04/2013 dated 17th April 2013.
- These forms can be generated only for valid PAN. In case of invalid PAN or if the PAN is not reported in TDS statement, Form 16/Form 16A will not be generated.
- TDS certificates downloaded from TRACES are non-editable.
- These forms can be Downloaded in ZIP format. Please do not Extract the File.
- Deductor need to convert the downloaded Form 16A/Form 16 zip file into PDF by using latest version of PDF convertor utility available on TRACES.
- Transaction based report (TBR) can be downloaded in case of non-residents who do not have PAN in India reported in Form 27Q
- Delay in issue of IDS certificate shall result in penalty of Rs. 100/- for each day of default not exceeding the amount of tax deductible
What are the consequences of non filing of TDS Return?
Penalty (Sec 234E): Deductor will be liable to pay way of fee Rs.200 per day till the failure to pay TDS continues. However penalty should not exceed the total amount of TDS deducted for which statement was required to be filed.
Penalty (Sec 271H): Assessing officer may direct a person who fails to file the statement of TDS within due date to pay penalty minimum of Rs.10,000 which may extended to Rs.1,00,000.
Interest on late payment of TDS
| SECTION | NATURE OF DEFAULT | INTEREST SUBJECT TO TDS/TCS AMOUNT | PERIOD FOR WHICH INTEREST IS TO BE PAID |
| 201A | Non deduction of tax at source, either in whole or in part | 1% per month | From the date on which tax deductable to the date on which tax is actually deducted |
| After deduction of tax, non payment of tax either in whole or in part | 1.5% per month | From the date of deduction to the date of payment |
Note: The above interest should be paid before filing of TDS return.
Under Section 201(1A) for late deposit of TDS after deduction, you have to pay interest. Interest is at the rate of 1.5% per month from the date at which TDS was deducted to the actual date of deposit. Note, that this is to be calculated on a monthly basis and not based on the number of days i.e. part of a month is considered as a full month.
For example, say that your payable TDS amount is Rs 5000 and the date of deduction is 11th January. Say you pay TDS on 25th May. Then the interest you owe is Rs 5000 x 1.5% p.m. x 5 months = Rs 375.
“Month” has not been defined in the Income Tax Act, 1961. However, in a number of High Court cases, it has been mentioned that it should be considered as a period of 30 days and not as an English calendar month.
This amount is to be paid from the date at which TDS was deducted, not from the date from which TDS was due.
For example, let the due date of TDS payment be 7th June and you have deducted TDS on 11th May. Say you have not deposited TDS by 7th June. Then you will be required to pay interest starting from 11th May and not 7th June.
Also consider the case in which you deposit tax one month after the due date. Say you have deducted TDS on 1st July. Then the due date is 7th august. Now say you deposit tax on 8th August (i.e. one day after the due date). Then interest is applicable from 1st July to 8th August i.e. for a period of 2 months. You now have to pay interest of 1.5% p.m. x 2 months = 3%
Some Important Points need to keep in mind
- All deductors must register themselves at https://ift.tt/1pDTtrA (TRACES Portal).
- Quote correctly their TAN and also PAN of the deductee so that they get their due tax credit.
- Quote correctly CIN of the challan to avoid default for short payment.
- Non-quoting of PAN or TAN in TDS statement may lead to levy of penalty.
- Deductors may avoid defaults about PAN and challan errors in preliminary screening, by responding to email/SMS from CPC(TDS) within seven days of receipt of email/SMS.
- TDS certificate downloaded from TRACES system is the only valid certificate.
- Use PAN-TAN master facility at TRACES Portal to verify correctness of PAN of the deductee.
- If there is no transaction liable to TDS/TCS to report for the quarter. do intimate the same at TRACES Portal using “Declaration for Non filing” functionality to avoid notice for non-filing of IDS statement.
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