TDS Online Filing Process and Benefits of Filing TDS
 

Tax Deducted at Source (TDS) is an important conceptunder the Indian Income Tax Act. It refers to the tax amount deducted by a payer when making specific types of payments to a payee. The payer is required
to deduct TDS at prescribed rates before the amount is actually paid. The deducted TDS is then paid to the government and reported in TDS returns filed quarterly.

TDS is primarily meant to collect taxes upfront andensure better compliance. It covers payments like salaries, interest,
commission, professional fees, rent, contract payments etc. which exceed a threshold. TDS rates vary from 1% to 30% depending on the tax status of the deductee and nature of payment. Only government, banks and notified entities
are allowed to collect TDS.

The process of TDS return filing is completely online and mandatory for all TDS deductors. The steps include

1. Get TAN Registration - The deduct or must obtain Tax Deduction and Collection Account Number (TAN) which serves as an identification.
2. Deduct TDS from Payments - Dedicatee’s PAN should be obtained and TDS at applicable rate should be cut from payments.
3. Deposit TDS - The tax deducted must be paid to the credit of the government within 7 days from the month-end.
4. Issue TDS Certificate - An online generated certificate with details of TDS deducted must be issued to the deductee.
5. File Quarterly Returns - For salaried employees, Form 24Q. For others, Form 26Q. With details of deductee, tax rate, amount paid and TDS deducted.
6. Issue Annual TDS Certificate - An annual certificate of total TDS deducted during the financial year should be issued to the deductee.
7. Rectify any Errors - Correct any mistakes in the TDS details through revised returns within allotted timeframe.
   

Timely filing of TDS returns has many benefits:

1. It ensures the government gets updated about taxes collected by each deductor.
2. Taxauthorities can cross-check if the deductee has paid taxes on the amount received after TDS deduction.
3. Delayed filing can lead to levy of interest and penalty on deductor.
4. TDS certificates are needed by deductee to claim TDS credit while filing their tax returns.
5. Itbuilds credibility of the deductor as a tax compliant entity.
   

In summary, TDS consultant service in Chandigarh is vital for all taxdeductor entities and ensures proper tax compliance. Online filing on a quarterly basis accurately reports details to tax authorities and deductees.