Tax Deducted at Source

TDS Returns

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TDS Returns

A TDS Return is a summary of all the transactions related to TDS made during a quarter. TDS Return is a quarterly statement submitted by the deductor to the Income Tax Department. The statement shows a summary of all the entries for TDS collected by the deductor and the TDS paid by the deductor to the Income Tax Authority. The TDS Return statement includes details like the PAN of deductor & the deductees, all the detailed particulars of the TDS paid to the government and the TDS Challan information.

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 such as salaries, commission, professional fees, interest earned, rent etc. are subject to TDS deduction. Based on the type of income and amount of income earned, TDS is paid at various rates. Thus, different kinds of income have different TDS rates and the tax is paid on the extra amount earned after a certain maximum threshold limit is attained. The rate at which TDS is paid varies from 1 per cent to 30 per cent, depending on the income taxed.

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.

  • 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.

Would you require support from our professional team to help you file your TDS returns? Get in touch with our expert for more details.

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