In India, Tax Deducted at Source (TDS) acts as a tax collection mechanism computed at the source of income. This ensures a steady flow of revenue to the government and also helps to minimize tax evasion. Understanding various types of TDS return forms is essential for individuals and businesses responsible for deducting TDS.
TDS is an advance tax that is paid or credited to the receiver's account. The TDS deductor or the collector has to submit a TDS return quarterly. These returns can be submitted in TDS return form depending upon certain conditions;
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- For quarterly statements for TDS from salaries, TDS return Form 24Q is applicable.
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- For quarterly statements for TDS in respect of all payments other than salaries, TDS return Form 26Q is applicable.
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- For quarterly statements of deduction of tax from interest or dividends, TDS return Form 27Q is applicable. It is also valid for sums payable to non-residents or foreign companies.
This is a comprehensive guide that consists of all relevant information about different types of TDS return forms, highlighting their specific purposes and filing requirements.
Form 24Q
TDS return filing form 24Q has to be filled up for the declaration of citizen's TDS returns in detail. It has to be filed by employers to declare and deposit TDS deducted from employee salaries during the specific quarter.
This TDS return filing form has to be filled with information based on citizen’s salary payments, Permanent Account Number (PAN) of Deductor and Deductees, deductions made for taxation, and Challans. The declaration and payment have to be made quarterly by Indian companies and firms. With all the other relevant information, the deductor must submit the Form 24Q to the Income Tax Department.
There are different variants of one can download TDS return forms, such as Form 24Q-Q1, Form 24Q-Q2, Form 24Q-Q3, and Form 24Q-Q4. It needs to be filed electronically for the four quarters of the financial year (April to March). Further, each form filed for the respective quarter is essential for compliance on part of the employer. This ensures accurate reporting of TDS on salary payments.
The form is also supported by Annexure I and Annexure II wherein Annexure I is to be submitted by the deductors for every quarter of the financial year. Annexure II has to be furnished and submitted only in the fourth quarter of the financial year. This annexure also contains the details of the salaries paid to the employees in an entire financial year.
Form 26Q
Form 26 TDS return is a quarterly statement of tax collected at source from payment other than salary under Section 200 (3), 193 and 194 of the Income Tax Act 1961. People who are living and working in India or are Indian citizens must file TDS return Form 26Q. This form caters to the declaration if TDS is deducted on rent, director's remunerations, interest on investments, professional fees, and includes interest on securities dividend securities, etc.
Similar to Form 24Q, it is filed quarterly and requires information like PAN details of the payee, the nature of payment, and the amount of TDS deducted under different sections. The due date to file Form 26 TDS return electronically is 15 days after the quarter's end.
It needs to be indicated in the Income-tax TDS return Form 26Q whether the deductor is Government or non-government. TDS return filing form 26 Q requires the non-government deductors to furnish PAN. Non-government deductors will have to mention 'PANNOTREQD'.
Form 27Q
Form 27Q is made under Section 206c of the Income Tax Act 2017. 27 A form for TDS return is compulsory for non-government deductors to mention the PAN in the form and government deductors mention “PANNOTREQD”. In case the deductors are from the Central or State Government, the ministry or department must be mentioned.
Here tax is collected by the Seller from the buyer for certain goods while debiting the amount payable to the account of the buyer. It is applicable on the amount received from the buyer for selling goods mentioned under Section 206C. amount can be received in the form of cheque, cash, demand draft, or any other mode of payment.
Form 27EQ TDS return is a quarterly statement that shows TCS, tax collected by the seller. This form furnishes the details and information of tax collected at source. Therefore, it is mandatory to furnish TAN.
Form 27D is a TDS revised return form that also serves the purpose of revising previously filed TCS/TDS statements due to errors and omissions. Although there is no specific due date for this, it is recommended to file this GST TDS return form as soon as possible to avoid penalties. Filing a TDS return requires details about the revised information, along with the original challan number and date of the statement being revised.
How To Download the TDS Return Form
E TDS Return Form has to be submitted in four categories wherein a taxpayer will have to choose the particular category for which he or she has to file a TDS return accordingly.
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- Taxpayers will first visit the official website of NSDL to begin e-filing for the TDS return form.
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- Then click on the downloads tab and choose E-TDS/E-TCS from the drop-down list menu to select between different types of TDS return forms i.e. Form 24Q 26Q 27Q 27EQ.
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- Once the applicant clicks on “Quarterly Returns” and chooses the 'regular' option, he or she shall be redirected to the new page.
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- Lastly, taxpayers can choose the TDS Return Form from section “Form” as per the requirements mentioned in the Income Tax Act 1961 details.
Additional Considerations
Considering the summary of the Income Tax Act 1961, here are a few considerations that taxpayers can consider.
Every deductor is required to obtain a Tax Deduction and Collection Account Number (TAN) from the Income Tax Department before deducting or collecting tax. Timely filing of TDS returns is essential to avoid penalties and interest charges. Detailed guidance is owed to the Income Tax Department and online tools for filing TDS returns electronically.
FAQs
How Many Types of TDS TDS Are There?
According to the Income Tax Act 1971, an individual earning above a certain threshold is required to file TDS. There are various types of TDS return forms depending on the purpose of the TDS. Form 24Q Form 27Q Form 26QB Form 26QC Form 26Q TDS.
What Is Form 16A?
Form 16A is a TDS certificate that every employer is provided as a TDS certificate. It is only for salary income, and Form 16A applies to income sources apart from salary. It will be issued when TDS is deducted for fixed deposits and carries all amounts of TDS nature being deposited with the Income Tax Department.
Which Form Is Used For TDS?
Tax laws in India mandate TDS returns to be submitted in various forms depending on certain conditions. TDS returns are filed quarterly according to the specified payments mentioned under the Income Tax Act.
