The government made it possible for taxpayers to file TDS online via the TRACES website for several years. However the uptake among taxpayers has been low, possibly on account of the apparent complexity of the user interface and because it was a challenge to comply with the required data procedure. People continued to rely on third parties for uploading TDS returns.
To bridge the gap, the income tax department added an option to their own website – taxpayers can now file their TDS returns in a less complicated manner. The data procedure too is far less tedious.
The deadline for filing TDS return for the ongoing quarter is 31st March, which is approaching quickly. This is the time when many people are asking around or researching online about how to file TDS return for salary or how to do TDS.
Read on for a step by step guide on how to file TDS returns. We will cover how to file TDS returns online as well as how to file TDS returns offline in 4 simple, easy-to-follow steps.
Irrespective of whether you file online or offline, the following are non negotiable.
- – You need to prepare your TDS statements on Return Preparation Utility
- – The TDS statement had to be validated using File Validation utility
Now let us proceed to learning the process for both online and offline options.
File TDS return online
Step 1 – Gather all the prerequisites
- If you are paying TDS you need to have a registered TAN. This needs to be registered for e-filing
- Ensure that the TDS return being filed meets the criteria set for this process which is very simply that
- It needs to be from FY 2010-2011 and later.
- It is a regular TDS return.
There are two methods of validation and depending on which one you choose you will need to ensure one of the following two options:
Option 1: Linked details for EVC (Electronic verification):The principal contact’s bank account (or demat account) needs to be provided. Alternatively the principal contact’s PAN number needs to be linked to their Aadhar. You can update PAN details on the income tax department’s website itself.
Option 2: Valid digital signature for DSC (digital signature). A valid DSC has to exist if you wish to use this option. Ensure that the linked email address is still operational because the confirmation email will arrive at that address.
Step 2 – Visit the website and log in
Visit www.incometaxindiaefiling.gov.in and click on the button that says Login Here at the right side corner. There are also options to register new users and to help you in case you have forgotten your password. In case you cannot remember your user ID it is your TAN.
Step 3 – Fill up the form
- – Once logged in select the TDS tab and the Upload TDS option.
- – A form will open up – sit down with full focus and key in the correct details.
- – Now click ‘Validate’.
Step 4 – Verify/ Validate
Earlier in this blog we discussed how there are two options for validation. Depending on which option you choose then, follow the relevant set of directions given below:
If you chose option 1, link details for EVC:
After step 3, upload the zip file containing the TDS returns. Select ‘Click Here to e-verify’.
A new screen will open up where you can choose between two options. You may either use an existing EVC or may request for a new one to be generated. Choose the more convenient option and enter the EVC. Click on submit. You’re done! A success message will appear on screen and you will receive a confirmation on your registered email id.
If you choose option 2:
You need to have your DSC handy. Upload your TDS zip file and also attach the DSC file. Once the statement is uploaded a success message will appear on screen and you will receive a confirmation on your registered email id. Process complete!
File TDS return offline
Filing TDS return offline is also a relatively easy process, although it does require more paperwork in comparison with the offline method. Especially if you are not prepared with the requirements for EVC and DSC validation processes, this is a good way to go.
Step 1 –
Get the right format from the following link https://www.tin-nsdl.com/services/etds-etcs/etds-rpu.html
Prepare the TDS return in clean text (meaning no fancy formatting) format. It has to be a .txt or a notepad file. Again you need to utilise RPF for this option too – it is available on the NSDL website.
Utilise yet another NSDL tool, FVU to verify. Errors if any will be detected and called out automatically by the FVU at this stage
In case any errors emerge, do not panic. You simply need to make the required corrections and validate the file once again.
The generated .fvu file has to go through the following two steps
1 – It has to be submitted at the TIN FC
2 – It has to be signed by an authorized signatory and saved to a CD or pen drive along with form 27A.
So there you have it – as promised an easy step by step guide to filing TDS.
FAQs
What is TDS?
TDS (Tax Deducted at Source) is implemented by the government of India to collect tax at the source. A percentage of the payment is deducted by the payee at the source before making the final payment to the receiver
What are the types of TDS returns?
The primary types of TDS are the following:
- 24Q for salary payment
- 26Q for non-salary payments to residents
- 27Q for non-salary payments to non-residents
- Form 27EQ is filed quarterly for TCS payments. It contains information on tax collected by sellers while receiving payments from buyers on specific goods
What is the penalty for late filing of TDS?
As per Section 234E of the Income Tax Act, the penalty for failing to file the TDS return on or before the due date is ₹200 per day until the penalty amount equals the total TDS liability.
What are the steps to file TDS return?
Follow the steps below to file your TDS return.
- Login to the e-filing portal using your TAN
- Navigate to Income Tax Form and ‘Click’ on File IncomeTax Forms
- Navigate to the file you want to file
- Click on ‘File Now’
- You’ll be redirected to the page where you need to upload all details for TDS filing
- Enter the validating OTP sent to your mobile number to complete the filing process
