What is TDS?
Tax Deducted at Source (TDS) is a mechanism for collecting income tax in India. It ensures that tax is deducted at the very source of income, aiming to prevent tax evasion and maintain a steady flow of revenue for the government.
Importance of TDS Filing
- Compliance: Ensures adherence to government regulations.
- Avoid Penalties: Prevents late fees and penalties for non-compliance.
- Transparency: Maintains accurate and transparent financial records.
- Timely Refunds: Facilitates timely refunds for eligible taxpayers.
Who Needs to File TDS?
- Employers and businesses who deduct tax at source.
- Individuals responsible for specific payments like salary, commission, rent, interest, etc.
Types of TDS Forms
- Form 24Q: For TDS on salaries.
- Form 26Q: For TDS on all payments except salaries.
- Form 27Q: For TDS on payments made to non-residents.
- Form 27EQ: For TCS (Tax Collected at Source).
Steps for TDS Filing
- Obtain TAN (Tax Deduction and Collection Account Number).
- Calculate TDS amount to be deducted.
- Deposit TDS with the government using Challan 281.
- File TDS return quarterly using the appropriate form.
- Issue TDS certificates (Form 16/16A) to deductees.
Due Dates for TDS Filing
- Quarter 1: April-June - 31st July
- Quarter 2: July-September - 31st October
- Quarter 3: October-December - 31st January
- Quarter 4: January-March - 31st May
Penalties for Late Filing
- Late Filing Fee: ₹200 per day until filed, up to the amount of TDS.
- Interest: 1.5% per month on TDS amount from deduction to payment date.
- Prosecution: In severe cases, prosecution with imprisonment from 3 months to 7 years.
How We Can Help
Our services include TAN registration, accurate TDS calculation, timely deposit with the government, preparation and filing of TDS returns, issuance of TDS certificates, and compliance management to keep you updated on regulatory requirements.
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