Published on:
January 12, 2023

All you want to know about Tax return 

People must submit TDS returns if tax at source on a certain source of revenue has been taken and reported to the government. Such a return often needs to be filled out within a certain time frame and include important information about the tax deduction, the deductor, and the deductee, among other things.

What is TDS Return?

The ideal way to define a TDS return is as a statement or a summary of all TDS-related transactions that took place during a given quarter. Usually, it contains information on the TDS that the deductor has collected and deposited with the Income Tax Authority. The crucial information given in a TDS return statement consists of –

Significantly, the payee's Form 26AS includes all the information that is revealed in the online TDS return form. All those who fall under the jurisdiction of the tax slabs set forth by the IT department must comply. Usually, those who qualify can submit their TDS returns online through the IT department's e-filing system. One must pay a minimum fine of Rs. 100,000 for postponing the procedure if they fail to file TDS returns within a year of the due date.

The fine must also be paid if erroneous information is provided. Notably, Section 234 mandates that taxpayers who fail to submit their TDS returns by the deadline must pay a penalty of Rs. 200 each day till they are submitted.

How to file TDS return

The procedure of tax deduction at the time of the transaction or when the payee's account is credited with the money is known as tax deducted at source, or TDS.

A quarterly statement known as a TDS return is delivered to the Income Tax Department. It should be mandatory for each deductor to submit their TDS return on time.

One must thoroughly understand the application process and eligibility requirements in order to submit a TDS return. We offer this article on filing a TDS return to cover each section in detail.

How to file an online TDS return?

An individual needs to have some of the necessary paperwork with them while filing TDS returns online. 

Following are the documents you will be needing:

1. Tax payment made to the govt PAN cards for the deductee and the deductor.

2. Information about TDS challan.

3. if more paperwork is required.

Let's now look at the detailed instructions for filing TDS returns online.

1. Rules for submitting TDS returns.

2. Form 27A must be used to submit quarterly statements and deductor returns. The paid amount, the TDS, and a synopsis of the quarter statements are all included in this form. Examine the steps involved in filing a TDS return.

3. The form includes a control chart.

4. Fill in every column in that diagram.

5. Fill out the areas for the amount paid and the tax deducted at source carefully by adding up the numbers on the appropriate forms.

6. For precise verification, the assessee must input their Tax Deduction Account Number in this form.

7. Additionally, it is essential to include the specifics of a TDS deposit when submitting the return.

8. Taxpayers must adhere to a specific format in order to submit a TDS return online. This is possible with the help of a programme from the NSDL called Return Prepare Utility (e-TDS RPU) (National Securities Depositories Ltd). It's vital to remember that the filename extension must be "txt."

9. The form must now be digitally signed by the deductor and submitted using the NSDL Tax Information Network site. 

10. One needs to be familiar with digital signatures in order to understand how to file a TDS return online.

11. Following submission, a person will get an acknowledgment receipt with a token number. The deductor will get a non-acceptance memo explaining the reasons for rejection in the event that returns are rejected.

Eligibility criteria for TDS returns 

The requirement for Tax Deducted at Source returns must be met by a worker or organization in addition to learning how to file TDS returns in a step-by-step manner. So, before submitting a TDS return, you must have a valid TAN (Tax Collection and Deduction Account Number).

A person making a purchase under the Income Tax Act is required to withhold tax at the source and deposit it within the specified window of time. The following are some payments for which a TDS return must be filed:

1. Paying salaries

2. income received from solving puzzles, winning lotteries, etc.

3. financial gain from securities

4. earning money by participating in and winning horse races

5. commission for insurance

6. Rent is due.

7. Interest income

8. sale or acquisition of real estate


1. What is the data structure (file format) for preparing e-TDS/TCS return?

e-TDS/TCS return should be prepared in accordance with the data structure (File Format) prescribed by the e-filing administrator. 

2. What is the Challan Serial Number given by the Bank? 

Bank Challan Number is a receipt number given by the bank branch where TDS is deposited. A separate receipt number is given for each challan deposited. You are required to mention this challan number in the e-TDS/TCS return. 

3. What is ‘Bank Branch Code’? Where do I get it from? 

Reserve Bank of India has allotted a unique seven-digit code to each bank branch. You are required to mention the code of the bank branch where TDS is deposited in the e-TDS/TCS return. You can get this code from the bank branch where the TDS amount is deposited. 

4. Is it mandatory to mention Tax Deduction 

Account Number (TAN) in e-TDS/TCS return? Yes, it is mandatory to mention the 10 digit reformatted (new) TAN in your e-TDS/TCS return. 

5. Can I file Form No. 26Q separately for contractors, professionals, interest etc.? 

No. A single Form No. 26Q with separate annexures corresponding to each challan payment for each type of payment has to be filed for all payments made to residents.


GST Migration under Central Excise Service Tax Provisions Process
Types of GST Applicable on E-Commerce Sales in India: A Detailed Guide
Place of Supply of Imports – Explained

Updated on:
March 16, 2024