In this post we have explained the significant details about the TDS returns that a taxpayer should know when filing an online TDS/TCS return. Some smaller problems in the TDS ecosystem are explained that are much more pertinent however most tax deductors are either ignorant or unaware of the same.
TDS Returns: Five Things You Need to Know
Below are the important details about TDS/TCS return filing that a taxpayer should know when filing TDS returns:
TDS Interest Calculation
If there is a case of delay in the TDS deposit then the interest is required to be paid. It is computed on the grounds of each month of the late or part thereof. Let's suppose the tax deducted on the date 27th of April and on the 9th of May, it is deposited rather than 7th of May the same shall consequence in two months of interest as the deducted amount was being used partly in April and in May. while if the on 30th April the tax was deducted then the interest shall be for 1 month only.
Threshold Limits for TDS
The majority of the TDS sections are secured with a specific amount to which the tax might not get deducted. The specific is said to be the Threshold limit. But TDS shall be applied to the total amount when the cumulative amount in that year is more than the set limit. For instance TDS Section 194H, the limit is Rs. 15,000. Let's say the payment was made for Rs. 10,000/- without TDS as the same was within the threshold. An additional payment of Rs. 7,500/- was made to the same person, and now TDS will apply on a cumulative amount of Rs. 17,500/-.
Filing TDS Challan ITNS 281
A person should mention the nature of payment at the time of filing the TDS challan ITNS 281, by choosing the section from the list. At present there is no relevance since each TDS line record comprises the nature of the payment. No requirement is there to do a separate challan for each section. Choose any section since the department shall overlook the same and use the same for all the deductions.
TDS Interest Allocation Payments
The ITNS 281 TDS Challan Form includes a section for making 'Interest' payments. However, it's important to note that when you make an interest payment using ITNS 281, this payment is not adjusted with your interest liability. When you file your returns, you need to allocate the interest amount from the total value of the Challan to offset your interest liability. It's crucial to understand that the determination of the 'Interest' payment is based on the Return, not the Challan.
Trading with Extra Deposit of TDS
If the case is for the excess deposit of TDS then the same might be managed through the mentioned below ways-
In any old challan utilise the excess value against the future tax deductions within the identical financial year and for the immediate subsequent fiscal year.
Via the TRACES portal, a refund might get executed or through approaching the related officer of the department. If the process is crucial then only it gets executed since it is a longer procedure.
As above you already understand the main things which you need to remember when filing TDS returns. SAG Infotech Gen TDS return filing software will be a reliable and robust TDS/TCS software as it is cost-effective and available at Rs 5000. For more than 20 years they have been providing the service with a large user base all over India along with the remote areas. The software is user-friendly and customer support is also very good.
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