Electronically submitted TDS and TCS returns are referred to as e-TDS and TCS returns. The forms 24Q, 26Q, and 27Q are available for submitting e-TDS. Similarly, Form No. 27EQ is available for filing e-TCS. Both the e-TDS and TCS returns require a signed verification on Form No. 27A.
Who is required to file an e-TDS and a TCS?
Every company and government collector is required to file an electronic TDS and TCS return under the Income Tax Act of 1961. Other than corporate and government collectors, deductors/collectors may file it either physically or electronically. A government collector is required to file TDS and TCS.
To regulate e-TDS and TCS returns, the CBDT appoints a Director-General of Income Tax (Systems) as e-Filling Administrator.
The Income Tax Department and the NSDL e-Gov-TIN website provide a data format for preparing e-TDS and TCS returns. This data format is issued by the e-Filling Administrator. Validation software is also accessible on the websites to check the return’s data format.
The following features should be included in the e-TDS/TCS return:
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The e-TDS/TCS return should be prepared on a CD or Pendrive. As a result, the curated and managed data is not saved on numerous electronic mediums.
The return must be accompanied by Form 27A, which is required supporting paperwork.
In Form 27A, avoid overwriting and striking.
For the preparation of the return, there is software available.
For preparing returns, NSDL e-Gov provides its own free and open software, the Return Preparation Utility. You may also utilise your software. Software for preparing the return has been developed by several ceratin external providers. The NSDL e-Gov -TIN website has a list of these providers.
Forms for filing TDS returns are available.
No.24Q form
The quarterly statement for tax deducted at source from the ‘Salaries Period – quarterly Form No.26Q’ is included in this form.
The statement of quarterly tax deducted at source in respect of all payments other than ‘Salaries’ is included in this form.
No.27Q Form
Quarterly statement of tax deducted from interest, dividends, or any other payment payable to non-residents Period
The employer deducts TDS from the employee’s gross wage. On behalf of the employee, the deducted TDS is deposited with the government or authorities.
Within 15 days of completing the TDS return, the employer must produce a TDS certificate showing that the money has been deposited.
It can be kept as documentation of TDS and can assist the employee in preparing their income tax return (ITR).
If an employee switches jobs numerous times in a financial year, each employer will deduct TDS on the gross wage for the period of employment separately.
Form-16 is issued by the employer once a year, usually at the conclusion of the financial year in which TDS deductions are made.
Why should you verify if TDS has been deducted and deposited?
Employers are increasingly deducting TDS but failing to deposit it with the government, according to the government. The employee must keep track of whether or not his TDS deductions are properly deposited with the government.
Any discrepancy between Form 16 and Form 26A might result in legal action. TDS has been withheld from your salary, as shown on your Form 16. However, there will be no record on Form 26 A for TDS deposition against your PAN.
Every business is required to file a TDS return on a quarterly basis. You may look up the last date to file and the date the TDS certificate was issued.
How can you know whether your employer has deducted TDS and if it has been deposited?
Form 26AS is a statement that is generated yearly and shows a person’s tax credit.
TRACES has a Form 26AS available for download.
Go to the web site and log in. To read the statement, the user must provide a password. As a result, be cautious when entering your credentials.
After that, you’ll be able to access your statement. Information such as the name of the deductee, PAN, details of the deductor, amount of TDS, and the amount of TDS deposited may be seen on the statement.
Similarly, the Internal Revenue Service has begun issuing SMS notifications. They inform the individual of the overall TDS deposited as well as the total TDS for the whole financial year.