TDS RETURN (QUARTER FILING) FOR INDIVIDUAL

TDS RETURN (QUARTER FILING) FOR INDIVIDUAL

An individual must file quarterly TDS returns if their accounts are audited under Section 44AB and they have deducted tax from payments. The specific form for filing depends on the nature of the transaction. 

Determine the correct TDS form

An individual deductor will use one of the following forms for their quarterly returns, based on the type of payment made: 

• Form 26Q: Used for TDS deducted on most non-salary payments, such as interest, rent, professional fees, or commissions paid to a resident.
• Form 24Q: Used for TDS deducted on salary payments.
• Form 27Q: Used for TDS deducted on non-salary payments made to a non-resident. 

Prerequisites for filing

• Tax Deduction and Collection Account Number (TAN): A valid TAN is mandatory for filing quarterly TDS returns.
• TDS Payment Challans: Ensure that all TDS deducted during the quarter has been deposited with the government using Challan 281.
• Deductor and Deductee Details: Gather the PANs of all deductees, along with the nature and amount of each payment.
• Registration on the e-filing portal: The individual's TAN must be registered on the Income Tax Department's e-filing portal to upload the return. 

Step-by-step filing process

Step 1: Download the Return Preparation Utility (RPU)

• Go to the official website of the TIN-Protean (formerly NSDL e-Gov).
• Navigate to the "Downloads" section, select "e-TDS/e-TCS", then "Quarterly Returns," and choose "Regular".
• Download the latest version of the Return Preparation Utility (RPU). 

Step 2: Prepare the TDS statement

• Open the RPU and select the relevant form (e.g., Form 26Q) and financial year.
• Enter the deductor's TAN, PAN, and other required information.
• Input the details of the TDS challans and the corresponding deductee entries.
• The RPU will perform a basic validation check to identify any format errors. 

Step 3: Validate the return

• After filling the RPU, generate a File Validation Utility (FVU) file. You can download the FVU from the same TIN-Protean portal.
• Use the FVU to validate the TDS statement file. If there are any errors, the FVU will generate a report identifying them.
• After successful validation, the FVU generates a .fvu file, which is the final return file. 

Step 4: Upload the TDS return

• Log in to the Income Tax e-filing portal using your TAN.
• Go to the 'e-File' tab, then select 'Income Tax Forms', and then 'File Income Tax Forms'.
• Find the option to "Upload TDS" and provide the details such as Form name, financial year, and quarter.
• Upload the .fvu file and attach a Digital Signature Certificate (DSC) or use an Electronic Verification Code (EVC) to verify the return.
• Upon successful submission, you will receive an acknowledgement. 

Quarterly due dates

The due dates for filing quarterly TDS returns are as follows: 

• April to June (Q1): July 31
• July to September (Q2): October 31
• October to December (Q3): January 31
• January to March (Q4): May 31

Consequences of late filing

• Late Filing Fee (Section 234E): A fee of ₹200 per day is levied until the return is filed. This penalty cannot exceed the total TDS amount.
• Penalty (Section 271H): A penalty of ₹10,000 to ₹1,00,000 may be imposed by the Assessing Officer for incorrect or delayed filing.
• Interest: Interest may also be charged for delayed deduction or deposit of TDS.