TDS & TCS Return Filings in India

Manage your TDS & TCS Returns filings with the guidance from experts throughout the process. We provide convenient and simplified filing services through 100% online process.

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Overview

Understanding the requirement of TDS & TCS Return Filings

  • TDS (Tax Deducted at Source)

As per Income Tax Act, tax is deducted at the source for any individual or company if the payment is more than the threshold specified. TDS is required to be deducted on the following payments:

Salary, Interest on loans, Professional charges, Contract Payments, Rent exceeding 2,40,000 per year and Non-Resident payments, Purchase of goods under Section 194Q

  • TCS (Tax Collected at Source)

TCS is the tax payable by a seller which he collects from the buyer at the time of sales of goods

TCS is applicable on Sale of Alcohol and Liquor for human consumption, Tendu leaves, Timber, Scrap, Minerals and Sale of goods under section 206C(1H)

The business persons to whom the TDS / TCS is applicable have to pay the TDS / TCS by end of 7th of every month. The responsibility of the business owner does not come to an end by just paying the TDS / TCS Challan to the government. They have to file the Quarterly returns by furnishing the details of the payees and their PAN in order to reflect the TDS amounts in their Form 26AS.

Also, the business owner has to check their accounts in a detailed manner whether the TDS / TCS are deducted / collected without short or excess. Especially since the new provisions relating to the TDS u/s 194Q and TCS u/s 206C(1H) are inserted, it is possible that, the business owner will deduct excess or short TDS for the Purchases made u/s 194Q and also may collect excess or short TCS for the Sales made u/s 206C(1H). Hence a detailed analysis of the accounts is required to calculate the TDS / TCS accurately. The TDS / TCS is required to be deducted or collected at the time of accounting or payment whichever is earlier.

Businesses will have to pay 1% per month for the short deduction or short collection till the actual amount of TDS / TCS is deducted or collected. And late filing fees for TDS / TCS return filing fees would be 200 rupees per day for the delay period from the due date till it is filed.

One has to pay 200 rupees per day from the delayed date till they file in case if they miss out to file TDS / TCS return within the due date. If they file TCD return 10 days beyond the due date, then the late fees would be 10 days * Rs. 200 per day, hence the late fees will result into Rs. 2000.

Why should you choose VirtualCA?

What are the benifits of choosing VirtualCA for TDS & TCS Return Filings?

When you file TDS / TCS returns with us, we will take care of generating of TDS / TCS challans after verifying all the transactions and will guide the applicability of TDS or TCS provisions for all the transactions. This will avoid the issues that the business are likely to face when they are liable for scrutiny of their accounts.

Types

Different types of TDS Forms:

Form 24Q – TDS On Salary

For all the businesses or companies to whom they are having employees who are drawing salaries more than the amount chargeable to tax, then the employers I.e., businesses and companies are liable to deduct the tax from the salaries and deposit the tax to the government on monthly basis. At the end of each quarter the businesses have to file the Form 24Q by mentioning all the details of the employees such as PAN, Gross amount paid, TDS deducted and Date of the transactions. After the successful processing of the TDS return by the employer, then those details will get reflected into the Form 26AS of the respective employees.

Form 26Q – TDS other than Salary

Businesses will have other type of expenses/payments that are required to be incurred in the course of the business. The expenses/payments such as Rent amount exceeding Rs. 2,40,000, Professional charges to Chartered Accountant/Lawyer/Interior designer and so on, Contract charges for AMC, Hiring Charges or Man power supply and related contracts, Commission payment, Interest payments, Dividend payment and so on. All these payments are having their respective rate of TDS and the businesses has to deduct the TDS accordingly. Hence businesses have to take the proper guidance of a skilled person in order to apply the provisions accurately. Form 26Q has to be filed on quarterly basis for the payments other than salary and after the successful filing of the Form 26Q, the TDS amount will be reflected into the payee’s Form 26AS.

Form 27Q- TDS other than salary to Non-Resident

When the businesses have to make the payments other than Salary to Non-Residents, then they have to deduct the TDS according to the certification received in Form 15CA & 15 CB (if applicable). Without obtaining Form 15CA & 15 CB (if applicable), a person cannot make the payments to Non-Residents. When the payments are made to the Non-Residents, then they have to file Form 27Q quarterly by mentioning the nature of payment, recipient details.

Form 27EQ – Sale of Specified items and Sale of goods exceeding Rs. 50 lakhs to one customer

Form 27EQ is required to file when the business is covered under any of the TCS provisions. As per Income Tax Act, the businesses which deals in specific list of goods such as Tendu leaves, Timber etc., or if the Sale of goods is more than 50 lacs for a Single customer as per 206C(1H) then the businesses have to file Form 27EQ by mentioning the required details of the customers such as PAN, Gross amount sold to the customer, Challan details. After filing Form 27EQ successfully, then the TCS amount will be reflected in the Customer’s 26AS.