TDS stands for ‘Tax Deducted at Source’. TDS is applicable on various incomes such as income on salaries, interest income, commission or brokerage received, dividends, etc. It is a type of advance tax. The person who is making the payment known as the ‘deductor’ having a Tax Deduction Account Number (TAN) is responsible for deducting the tax at source and depositing the same with the government and doing timely TDS return filing so that the ‘deductees’ can avail the Tax Credit they are eligible for.
Uploading TDS Returns On The Income Tax Portal
As per Section 206 of the Income Tax Act, it is compulsory for all corporate and government deductors to file their TDS returns electronically via the internet (i.e. e-TDS returns). However, for other Deductors, TDS return filing is optional. TDS returns are filed with the help of the following forms:
Type of Income
Other than salaries
Interest, dividend and other payments to non-residents
Tax Collected at Source
All the online TDS return filings are required to be prepared in the structured format issued by the e-filing Administrative authorities, and the software for preparing the TDS returns can be downloaded from the TIN NSDLwebsite (https://www.tin-nsdl.com/). The software is available along with the architecture which should be used to validate the data required for the preparation of the e-TDS return.
Also Read: TDS Refund: How To Claim TDS Refund
The TDS returns are required to be furnished quarterly. The due dates for filing are stated below:
April - June
July - September
October - December
January - March
Late Filing Fees: Under section 234E of the Income Tax Act, the person who has deducted the tax i.e. the Deductor will have to pay Rs. 200 per day until the TDS return filing is actually filed. However, it should be noted that the penalty amount should not exceed the TDS amount for which statement filing was required.
Penalty: Under section 271H of the Income Tax Act, a person who has failed to file the TDS statement within the stipulated time will be charged to pay a penalty the minimum of which can be Rs.10,000 but which might be extended to Rs. 1,00,000 depending upon the scenario of default. The penalty mentioned under this section is in addition to the penalty imposed under Section 234E.
How To Prepare The TDS Return
We’ll show you how to file TDS return online in the following steps:
- Step 1: To download the return preparing software, go to the TIN-NSDL website and click on the ‘e-TDS/e-TCS’ tab under the services tab.
- Step 2: Click on ‘e-TDS/e-TCS RPU’ and download the latest RPU version that is available for the preparation of TDS return.
- Step 3: Then, unzip the return preparation utility file, the FVU is a Java-based utility (JRE (Java Runtime Environment) make sure you have JAVA installed in your system beforehand, JRE is freely downloadable from http://java.sun.com.
- Step 4: Select Form no. ‘24Q’ or ‘26Q’ as per the kind of return you want to file and select the type of statement as ‘Regular’. Then, proceed to ‘click to continue.’
- Step 5: The first page contains the basic details to be filled like the ‘Financial Year’, ‘Quarter’, ‘TAN No’, ‘PAN No’, ‘Address’, ‘GST No’, ‘Details of the person who is filing the Return’ who is generally the ‘Authorised Signatory’, etc.
- Step 6: On the second page fill out the challan details, like ‘Date of deposit of TDS Return’, ‘BSR code of Bank from which TDS payment was done’, ‘Amount Deposited’, etc.
- Step 7: In the Annexure page you need to provide all the relevant details of the ‘Deductees’, ‘their Name’, ‘PAN NO’, ‘Amount remitted’, ’Tax Deducted’, ‘Rate at which tax been deducted, ‘TDS section under which TAX been deducted’, etc.
- Step 8: Download the CSI file from the TIN-NSDL website, check the details once again and click on ‘Create File’. A pop-up window will appear where the CSI file needs to be uploaded, then choose the folder where you want to save the return files.
- Step 9: Once the CSI file is uploaded, click on ‘Validate’. If the file is successfully validated, an FVU file will be generated and be saved in the selected folder. This FVU file contains the details of the returns which then needs to be uploaded to the Income Tax website, the process of which is explained down below.
Procedure To File TDS Return Online
Registration on the TRACES(TDS Reconciliation Analysis and Correction Enabling System) portal is mandatory for uploading TDS Return via the Income Tax Portal.
Step 1: Register on the TRACES website
To register on the Traces portal the following things are required:
- Acknowledgement receipt of Last TDS Return filed at Facilitation Centre
- Challan and challan-wise deduction details
Steps to Register as a Tax Deductor:
- Go to website https://www.tdscpc.gov.in/app/login.xhtml
- Then click ‘Register as New User’, select Deductor from the drop-down list, and proceed to fill in the required details and get registered.
Step 2: Login to Traces Website
- After login, go to quick links, click on “Register at E-Filing Site”
- Verify the details such as ‘PAN of the organization’, ‘TAN of organization’, and ‘PAN of the authorized signatory.’
- Click on Redirect to the incometaxefiling.gov.in.
Step 3: TDS Registration
- On clicking redirect it will take you to Income Tax Portal will pre-filled data. Fill up other details like password, mobile number, and email ID and enter the captcha, and click ‘submit.’
- Proceed for Registration. Once it’s done a confirmation message of ‘registering in e-filing’ will be displayed.
Step 4: Login to the Income Tax Portal
- Login to the Income Tax Portal (http://www.incometaxindiaefiling.gov.in) with usual login details such as by PAN, DOB and password then go to ‘worklist’ tab and click on ‘For Your Action’ my pending actions a screen will appear with all details like PAN, Name, Mobile Number, Email ID, etc. Click on TAN Number and confirm. On confirming you will get a message as ‘Request has been approved successfully’.
- After confirmation with the PAN login, you will receive an SMS and link for activation of the user ID, enter the mobile PIN and click on “Submit”. And then you will get a message ‘The user ID is successfully activated’.
- Now login to the Income Tax website with ‘TAN’ as ID and give the password which you have set at the time of this registration, you will now see a new tab ‘TDS’, put the cursor there, and select ‘Upload TDS’ to file the return.
Also Read: TDS Rate Chart For FY 2021-22
Conditions For Uploading TDS Returns:
It is essential to have the following things ready before beginning the process of uploading the TDS return filing:
- To upload TDS Return, the user should hold a valid TAN and should be registered in e-Filing.
- The TDS statements should be prepared using the Return Preparation Utility (RPU) software and validated via the File Validation Utility (FVU). These softwares can be downloaded from the TIN-NSDL website freely (https://www.tin-nsdl.com).
- A Valid DSC registered for e-filing (In case anyone wants to upload using DSC)
- The principal contact’s bank account or Demat account details should be pre-validated or the principal contact’s PAN should be linked with Aadhar (If you wish to upload using EVC)
Steps to Upload TDS return on Income Tax Portal
1: Visit the Income Tax e-filing Portal
Go to http://incometaxindiaefiling.gov.in, the e-filing homepage, and click ‘Login Here’.
2: Fill in the login details and click 'Login', to enter your account, the user ID will be your TAN No.
3: Explore the Dashboard
After login, you will see the tab ‘TDS,’ on clicking it the 'Upload TDS' option would be seen.
4: Enter the required details in the form ‘Statement Details’
This is the first step of uploading the ‘TDS Return’, where you need to select the following:
- Select the FVU version on which you have prepared your return,
- Select the Financial Year
- Fill Form Name
- Select the Quarter of the financial to which the Return pertains
- Choose the Upload Type
5: Then click ‘Validate’ to validate statement details.
6: Validation of the returns can be done through the following ways:
- Using DSC or Digital Signature Certificate, or
- Using EVC or Electronic Verification Code.
7: For validating using DSC or Digital Signature Certificate.
Once the validation process is complete, you will have to upload the TDS file you created. The ‘Upload TDS Return’ form will auto fetch the details like FVU version, financial year, quarter, form name, upload type, based on the details inputted by you previously.
8: Upload the zipped TDS file and attach the digital signature file generated using DSC Management Utility, then click on Upload.
9: Once TDS is uploaded, thereafter you will receive a success message on the screen and a confirmation mail in your registered email ID, which states ‘Your TDS return have been uploaded successfully and the Transaction ID is XXXXX’.
10: For those who want to validate using EVC or Electronic Verification Code.
The same process mentioned in step 7 above needs to be followed but instead of ‘attach the digital signature file’ you will see the option - 'Click here to E-verify', so after uploading the TDS file, click on 'Click here to E-verify'.
There would be the following three options for E-verifying TDS return viz.
- Option 1- I already have an EVC to e-Verify the Form
- Option 2- I do not have an EVC and I would like to generate EVC to e-Verify my Form
- Option 3- I would like to generate Aadhaar OTP to e-verify the Form
If you select ‘Option 1- I already have an EVC to e-Verify the Form’ then you need to enter the Electronic Verification Code (EVC) and click ‘Submit’.
If you select ‘Option 2- I do not have an EVC and I would like to generate EVC to e-Verify my Form’ then EVC can be generated from the listed three options:
- EVC – Through Net Banking: For this option, you need to follow the steps given below:
- The principal contact has to login to the e-filing portal through Net Banking.
- Then go to the e-file menu and generate EVC.
- Login to the e-filing portal through Net Banking.
- Select the TAN from the drop-down menu for which EVC should be generated.
- EVC will be sent to the principal contact’s mobile number registered with e-filing.
- Login to e-filing portal using entity’s TAN.
- Go to TDS -> Upload TDS and select the option ‘I already have an EVC to e-Verify the Form’ under 'Click here to E-verify'.
- Enter the EVC and click on submit.
- EVC – Through Bank Account Number: In order to generate code through Bank Account Number, principal contacts’ Bank Account Details have to be pre-validated on the Income Tax Website.
You need to click ‘Yes’ to generate EVC using this option, after which the generated EVC will be sent to the principal contact‘s Verified mobile number and email id.
- EVC Through Demat Account Number: In order to generate EVC through Demat Account, the Demat Account Details of the Principal Contact have to be pre-validated.
You need to click ‘Yes’ to generate EVC using this option, the generated EVC will be sent to the principal contact‘s Verified mobile number and email id.
If you select ‘Option 3- I would like to generate Aadhaar OTP to e-verify the Form’ then it is mandatory to link the Aadhaar and PAN. The Aadhaar OTP that is generated is sent to the principal contact’s Mobile Number. Enter the Aadhaar OTP and click ‘Submit’.
Select the appropriate option among the above three options and click submit.
View Filed TDS Statement
After the TDS filing, if you want to view the TDS return filed statement, the following steps should be taken:
1: Login to the e-filing portal, click on the TDS tab then view filed TDS.
2: In the form provided select the Financial Year, Quarter, and Form Name from the drop-down list.
3: Click on ‘View Details’.
4: You will be able to see the status of the filed return. Once it is uploaded, the status of the statement would be ‘Uploaded.’ After that, it will be processed and validated, and consequent to validation the status will be either be ‘Accepted’ or ‘Rejected.’ Moreover the outcome would be reflected within 24 hours from the time of upload.
5: In case the return is ‘Rejected’, the actual reason will be displayed. If it is ‘Rejected’, click on the Token Number to view the error details. The user should rectify the error and upload again by following the same procedure elaborated above.
6: If the return is ‘Accepted’ click on the Token Number to view the Statement Details and download the Provisional Receipt.
Using this guide you can easily upload your TDS return filing. Uploading TDS returns can now be done from anywhere, anytime. So, no more waiting in a queue or rushing to file your TDS returns.