TDS Return Filing

Tax Deducted at Source, commonly known as TDS, is a mechanism under which tax is deducted from specified payments and deposited with the government.

Businesses, employers and other eligible deductors may be required to deduct TDS on payments such as salary, professional fees, contractor payments, commission, rent and interest.

After deducting and depositing the applicable tax, the deductor must file the prescribed TDS return containing details of deductions, deposits and deductees.

Active More - Startups and SMEs business online provides professional assistance with TDS return preparation, document verification, online filing and compliance support.

A TDS return is a prescribed statement containing details of tax deducted, tax deposited, payment transactions and the persons from whose payments tax was deducted.

The appropriate return form depends on the nature of payment, deductor category and applicable tax provisions.

Accurate and timely filing helps ensure that the deducted tax is correctly reflected against the deductee’s PAN and may support the generation of the applicable TDS certificate.

• Companies and limited liability partnerships making specified payments.
• Partnership firms and eligible proprietorship businesses.
• Employers deducting tax from employee salary payments.
• Government departments and other prescribed organisations.
• Persons making specified payments such as rent, commission or professional fees.
• Other deductors covered under the applicable income-tax provisions.

The required records depend on the applicable return and nature of transactions. Commonly requested information may include:

• TAN and PAN details of the deductor.
• PAN and identification details of each deductee.
• Payment, invoice, salary or transaction records.
• TDS deduction details and applicable section information.
• TDS payment challans and bank payment details.
• Previous return acknowledgement, where applicable.
• Digital Signature Certificate or authorised signatory information, if required.
• Notices, defaults or correction details for revised filing, where applicable.

• Supports compliance with applicable income-tax requirements.
• Helps ensure tax credit is reflected correctly against the deductee’s PAN.
• Reduces the risk of late fees, interest, notices and other consequences.
• Supports timely issuance of applicable TDS certificates.
• Maintains organised tax records for accounting and assessment purposes.
• Helps identify challan, PAN and deduction mismatches at an early stage.

A correction statement may be required when an already-filed TDS return contains an error or incomplete information.