Understanding the notion of TDS Return

Section 191 of the Income Tax Act of 1961 establishes the TDS (Tax Deducted at Source) as a method for the income tax department to collect income tax. This was introduced by the Income Tax Department with the concept to collect tax at every source of income. A TDS return is a statement that includes all the relevant information, including full details of the payment made, taxes and TDS deducted, and other necessary information. A TDS Return includes fields like PAN No., Total payment done, TDS Amount Deducted, Type of payment, etc. It is required for an assessee who has deducted TDS to file a quarterly TDS Return. According to Section 200(3) of Income Tax Act, the due date of filing TDS return (online as well as offline) is on a quarterly basis for four times a year.

However, ‘Nil’ TDS return is not necessary to file but to facilitate the deductor’s and maintain data, Taxpayer must submit declaration for not filing NIL return. The following ways are conceivable for the statement to be presented:

●Electronically, with a digital signature, and in compliance with the protocols, formats, and standards outlined in rule 31A sub-rule (5).

●Electronically, along with the verification of the Form 27A statement, or electronically, with the proper protocols, formats, and standards as outlined in Rule 31A Sub-rule (5).

Note that in the case of the following quarter, the statements are mandatory to be submitted electronically.

1.   Every Government deductor

2.   Corporate deductor

3.   As required by the deductor in the preceding financial year, the accounts must be audited in accordance with section 44AB.

4.   if there are twenty or more records for deductees in a financial statement for any quarter during the fiscal year.

These quarterly statements shall be delivered electronically with a digital signature, electronically with a statement that has been authenticated electronically using form 27A, or electronically in accordance with the format and procedures specified in regulation 31A(5). Additionally, a declaration included on Form 27A must also be filed, and it must be in paper format. Such deductors are required to submit quarterly statements in electronic format via an e-TDS intermediary at any of the TIN Facilitation centers; information on these centers is readily available to citizens at www.incometaxindia.gov.in and also at https://tin.nsdl.com.

Furthermore, the quarterly statement may alternatively be filled out electronically on computer media by someone other than the deductor indicated above. However, doing so is not obligatory on the person.

The following information must be included by the deductor on his quarterly statements.

• TAN (Tax Collection Account Number),the Income Tax Department issues ten-digit alphanumeric numbers

• PAN of the deductor (not mandatory for the deductor who is in office of the government).

• PAN of every deductees

• All the particulars of the tax paid to the Central Government including the book identification Number or the Challan identification Number as applicable.

• Details of all payments or credits for which taxes were not deducted are provided, with a reference to the assessing officer's certification to the payee issued in accordance with Section 197 that no tax was deducted.

The deductee is entitled to credit for the amount deducted based on Form 26AS or the TDS certificate issued by the deductor.