How to File TDS Return Online & Return Filing Process Steps Explained

Tax Deducted at Source or TDS is the process wherein tax deduction takes place at the time of payment or when the payee’s account is credited with the money.

TDS return is a statement submitted to the Income Tax Department quarterly. Every deductor should mandatorily file the TDS return on time.

To file a TDS return, one must be thorough with the application procedure and the eligibility criteria. We present this article on how to file a TDS return to go over each segment thoroughly.

Read on to know more!

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How to file an online TDS return?

While filing TDS returns online, an individual should carry some of the essential documents. The list of documents are as follows:

PAN cards of the deductee and the deductor
Tax amount paid to the government
Details of TDS challan
Other paperwork, if needed

Now let us see the step-by-step procedure on how to file TDS returns online.

Steps to follow to file TDS returns

Deductors must use Form 27A to file returns along with quarterly statements. This form summarises the quarterly statements and contains the amount paid and the TDS. Take a look at the process of how to file a TDS return.

A control chart is present on the form. Fill up all the columns in that chart.
Carefully fill the sections of the amount paid and the Tax Deducted at Source by tallying it with respective forms.
The assessee must enter their Tax Deduction Account Number (TAN) in this form for accurate verification.
It is also crucial to mention the details of a TDS deposit while filing the return.
As per the basic e-TDS return form format, one must enter the 7-digit Bank Branch Code or BSR code. The Reserve Bank of India gives this code to banks.
To file a TDS return online, assessees should follow a certain format. This is achievable using software named Return Prepare Utility (e-TDS RPU) from the NSDL (National Securities Depositories Ltd). It is important to note that the file must come with a ‘txt’ filename extension.
Now the deductor has to sign the form digitally and submit the same in the NSDL Tax Information Network portal. To know how to submit a TDS return online, one must be accustomed to digital signatures.
After submission, an individual will receive an acknowledgement receipt containing a token number. In case of rejection of returns, the deductor will receive a non-acceptance memo stating the reasons for rejection.

Note: If an assessee wishes to file a TDS return in an offline mode, he needs to visit the nearby facilitation center under NSDL.

Eligibility criteria for TDS Returns

Besides knowing how to file TDS returns in a step-by-step process, an employee or an organization needs to fulfill the eligibility for Tax Deducted at Source returns. To that end, availing valid TAN (Tax Collection and Deduction Account Number) is a must before filing for a TDS return.

An individual making a transaction under the Income Tax Act needs to deduct tax at the source and deposit the same within an allotted time. Some payments for which one needs to file a TDS return are as follows:

Salary payments
Income earned by winning lotteries, puzzles, etc.
Income generated from securities
Accruing income from competing in horse races and winning
Insurance commission
Rent payment
Interest earnings
Sale/purchase of immovable property
Any payments concerning National Saving Scheme and other schemes

Forms required to file a TDS return

Based on the purpose of tax deduction, various forms are available to file TDS returns. In addition to this, as mentioned above, it is mandatory to present the returns along with the signed verification in Form 27A. If a deductor wonders how to file a TDS return, the table given below will be useful.

Forms	Details
26	The annual return of deduction of tax under section 206 of the Income Tax Act, 1961 in respect of all payments other than “Salaries”
26Q	Other cases
27	Quarterly statement of deduction of tax from interest, dividend or any other sum payable to certain persons
27E	The annual return of a collection of tax under section 206C of the Income Tax Act, 1961
27Q	Foreign companies, where the deductee is a non-resident
27EQ	Tax Collected at Source
24Q	Salary

Advantages of filing TDS returns

Here under listed some advantages of filing these returns in the following section.

Decrease in tax burden- Filing TDS returns ensures a reduction in lump-sum tax payment at year-end by dividing the amount over several months. This will, in turn, reduce a taxpayer’s burden at year-end.
Reduction in tax evasion- The Income Tax Department collects the TDS amount submitted by the deductor. This amount includes a portion of the deductee’s tax during submission. Therefore, by filing for TDS, one can avoid tax evasion.
Maintenance of income flow- TDS allows regular income flow to the government.

Therefore, it is advisable to learn how to file a TDS return without much ado and yield maximum benefits from the process.

Due dates of filing a TDS return

Apart from knowing how to file a return for TDS, an individual must be thorough with its due date. Here is a table showing the due dates for the fiscal year 2023-2024.

Quarter	Period	Last Date of Filing TDS
1st	1st April - 30th June	30th September 2023
2nd	1st July-30th September	31st October 2023
3rd	1st October-31st December	31st January 2023
4th	1st January-31st March	31st May 2023

In addition to this, there are different dates for the deposition of TDS by government offices and others. Given below is a table showing the due dates for TDS payment.

Credited Amount	Last Date of the TDS Deposit
Government office without challan	Same date
Government office with challan	7th of the immediate upcoming month
Deposit by a government employee	Same as the above point
Deposits by others in March	30th April
Deposits by others in other months	7th of next month

Generally, the last date to file a TDS return is 31st March of any financial year. However, CBDT (Central Board of Direct Taxes) reserves rights to extend the dates via its circulars.

Furthermore, one can validate TDS return files by updating details in the portal validation utility tool available for free on the NSDL website.

Therefore, by knowing how to file a TDS return, one can have a seamless tax payment procedure and additional benefits.

FAQs about How to File TDS Return

All

Is there any penalty if you fail to file TDS returns within the last date?

An assessee has to pay a penalty of ₹200 as per Section 234E if they file TDS after the due date.

What happens in case of errors in the TDS return file?

In the case of error detection, an assessee needs to file for a revised TDS return.

How much tax is deducted for any payment?

Usually, tax deduction takes place over a range of 1%-10% generally. However to an extent of 20% -30% in exceptional cases or if the assessee fails to provide his PAN.