TDS Return Forms 24Q, 26Q, 27Q, 27EQ:Tax deduction on source of income (TDS) is a kind of advance tax which the employer / company deducts before paying the salary. The government levies TDS revenue on the earnings of individuals and companies. Rules and laws related to TDS are covered under the Indian Income Tax Act, 1961, which is regulated by the Central Board of Direct Taxes (CBDT).
As the name of Tax Deduction (TDS) on the source of income tax shows, the company / owner and the tax deductor deducts the tax before giving salary to the employees. TDS applies to both regular and irregular income. TDS also applies to all types of earnings, salary, commission, rent (rent), professional fees, interest etc.
Benefits of TDS
TDS is deducted only from your earnings, so it is important to know that payment of TDS will be applicable only if you have any income and income. TDS is deducted before payment. The deduction is only on payments that are made by cash, check or credit. The amount deducted under TDS is deposited to government agencies. The following benefits of TDS payment:
- Tax evasion can be avoided by paying TDS.
- Taxes are collected on time.
- A large number of people fall under the tax net.
- For the government, the deduction by TDS is a regular source of income.
As per tax rules TDSIN applies to -IN
TDS applies to the following:
- limited company
- United Hindu Family (HUF)
- Partnership Firm
- Multi-person organization
- Local Authorities
What is the TDS deduction rate
The highest TDS is deducted on salary, commission, professional fees, interest, rent etc. How much your TDS will be deducted depends on what your income is and how much it is and what is the source of earning.
Therefore, TDS is deducted at different rates on many types of earnings. TDS is deducted from 1% to 30%.
What is the system of TDS deduction
As everyone knows, TDS is deducted from the payment made to the person. This means that the tax you receive is already tax deducted. It is important to note that the tax deductor is entitled to deduct TDS. For example, if the company pays salary to the employee, the TDS deduction belongs to the company.
TDS return information
The TDS return related information records all transactions made every three months. The TDS return report is filed every three months which is submitted by the tax deductor / company to the Income Tax Department. This statement also contains information related to TDS, PAN number and income paid to the tax deductor / TDS deposited by the company and the Income Tax Officer, as well as the TDS and TDS challan paid to the government.
Payment date for filing TDS return:
The payment date for filing TDS returns for the financial year 2018-2019 is given below –
|Quarter||Quarter term||TDS filing deadline|
|First quarter||1 April 2018 to 30 June 2018||31 July 2018|
|second quarter||1 July 2017 to 30 September 2018||31 October 2018|
|third quarter||1 October 2018 to 31 December 2018||31 January 2019|
|fourth quarter||1 January 2019 to 31 March 2019||31 May 2019|
Late filing of TDS returns
According to the new rules, which come into force from 1 April 2017, late filing of TDS returns can attract a fine of up to Rs 10,000. Also, the last date for filing Form 26Q has also been extended from 31 July 2018 to 31 August 2018. Following are the penalties for late filing of Form 26Q:
|E -filing date||Total income less than ₹ 5,00,000||Total income over ₹ 5,00,000|
|As of 31st August 2018||₹ 0||₹ 0|
|1 September to 31 December 2018||₹ 1000||₹ 5000|
|January 1 to March 2019||₹ 1000||₹ 1000|
TDS Return Form – A Look
As you know, the tax deductor is responsible for the deduction and also has to submit the TDS return form in time. It is important to know that TDS forms are different for every situation. It depends on the source of your earnings.
|Types of TDS Return Forms||TDS Return Form Information|
|Form 24 Q||TDS statement of deduction from salary|
|Form 26 Q||TDS statement related to all income other than salary|
|Form 27 Q||Statements of TDS applicable to payments made in addition to salary to foreigners and Indians residing abroad|
|Form 27 Q||Statement of tax collected at source|
Form 24 Q
- Under Section 192 of the Indian Income Tax Act, 1961, Form 24Q is made to file e-TDS return of TDS deducted from salary.
- Tax is deposited by the deductor every three months (quarterly).
- It contains information related to the salary given by the company to the employees and the TDS deducted thereon.
- It consists of 2 agreements, Agreement-1 contains tax deductor, tax payer and challan related information. And Agreement-2 contains the tax payer’s salary related information.
- In the agreement-1, tax is deducted by the tax deductor for every quarter of every financial year.
- Agreement-2 has to be submitted in the 3rd quarter of the beginning of the financial year, but after completion of 4th quarter it has to be submitted back with the information related to the salary of the entire financial year of the personnel.
Form 26 Q
- This is for TDS related to all payments other than salary.
- It is offered on a quarterly basis by the tax deductor. This applies for TDS under section 200 (3), 193 and 194 of the Indian Income Tax Act, 1961.
- The income on which TDS is deducted includes interest on security, dividend security, professional fees, compensation received from the director, etc.
- For non-government tax deductors, PAN is required. Government tax deductors must write “PAN not required” on the form.