TDS Return

TDS Return denotes the quarterly statement that is submitted by the deductor/employer to the Income Tax Department. It can also be defined as a sum total of all the TDS associated transactions carried during a quarter.

TDS return showcases the summary of all TDS entries collected that are paid by the deductor to the Income Tax authority. TDS return statement contains the following details:

1. 1. Deductee's PAN number
2. 2. In-detail particulars of the TDS contributed to the government's income
3. 3. Information regarding TDS Challan
4. 4. Payment amount
5. 5. Section under which TDS is deducted

The type of TDS return form to be submitted is mainly based on the nature of income of the deductee. It is crucial to note that there are several types of TDS return forms for different conditions.

Here are the types of TDS return forms:

The following is where TDS is applicable:

1. 1. The employer deducts TDS as per the income tax slab rates applicable.
2. 2. Banks deduct TDS @10%. They may deduct 20% if they do not have your correct PAN information.
3. 3. Rent payments made by individuals and HUF (Hindu Undivided Family) exceeding Rs 50,000 per month, has a deductible TDS @ 5% even if the individual or HUF is not liable for a tax audit.

The TDS Rates are specified under the income tax act, and TDS is deducted based on these specific rates.

As per the government, tax deductions are allowed under section 80C and section 80D of the Income Tax Act, 1961. This, in turn, will enable you to look for various types of investments for a particular financial year.

You can calculate TDS on salary by reducing the exemption from total annual earning as specified by the Income Tax department. In case of tax exemption, the employer obtains a declaration and proof from the employees to approve a tax declaration.

Below are a few steps to calculate TDS on your income:

1. 1) First calculate your gross annual income, allowances and perquisites
2. 2) Estimate The exemptions under Section 10 of the Income Tax Act on allowances such as medical, house rent and travel.
3. 3) Reduce the exemptions from the gross monthly income
4. 4) If you have any other source of income such as from house rent, subtract this amount from the figure calculated above
5. 5) Now, calculate your investments for the year under Chapter VI-A of ITA and deduct the amount from the above estimated gross income
6. 6) Finally, deduct the maximum allowable income tax exemptions on your salary

Also Read: How to Check & Claim TDS Refund?

Any individual making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of payment. But no TDS is deductible if the person making the payment is an individual or HUF (Hindu Undivided Family) whose books are not to be audited.

Filing TDS return online can be done through Return Prepare Utility Software available on NSDL website. If you file the returns online, then they can be submitted directly at the NSDL TIN website. Through the online mode, the deductor has to sign the return through digital signature.

Let us now see how to file TDS return online.

Follow the steps below to file TDS returns online:

Step 1: Check out the file format in which the e-TDS return is to be prepared and is notified in TIN-NSDL's e-Gov e-TDS/TCS Return Preparation Utility (RPU) webpage.

After knowing how to file TDS Return, you must also be well aware of the due dates.

Due dates for TDS return filing 2020 are as follows:

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