TDS / TCS Return Filing
Salaried Individuals are not required to obtain TAN or to deduct tax at source excluding specified transactions. However, an individual or HUF has to deduct tax at source if they were liable to get their accounts audited in the previous year. Other entities i.e. Private Limited Company, Public Limited Company, LLP, Partnership Firm etc. must deduct tax at source at the specified rate at the time of making payment/credit exceeding limit specified by the Tax Department from time to time.
Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha-numeric number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS). The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government through Authorized Bank quoting the TAN number in the relevant Challan. LegalRaj Expert can help you to obtain TAN Registration.
TDS / TCS RETURN FILING AND TDS ON PROPERTY PURCHASE
Basic Information
Tax Deduction and Collection Number (TAN) is mandatory 10 digit alpha-numeric number required to be obtained by all persons who are responsible for Tax Deduction at Source (TDS) or Tax Collection at Source (TCS). The person deducting the tax at source is required to deposit the tax deducted to the credit of Central Government through Authorized Bank quoting the TAN number in the relevant Challan.
LegalRaj Expert can help you to obtain TAN Registration.
Due date to deposit TDS/TCS during the preceding month is 7th day of the following month. For the month of March, due date is 30 April.
Salaried Individuals are not required to obtain TAN or to deduct tax at source excluding specified transactions. However, an individual or HUF has to deduct tax at source if they were liable to get their accounts audited in the previous year. Other entities i.e. Private Limited Company, Public Limited Company, LLP, Partnership Firm etc. must deduct tax at source at the specified rate at the time of making payment/credit exceeding limit specified by the Tax Department from time to time.
Entities having TAN Registration must then file TDS returns quarterly. LegalRaj Experts can help you by computing TDS Liability and filing/e-filing your TDS returns online which will help you to keep yourself compliant with TDS regulations.
TDS Filings must be made quarterly on 31st day of July, October, January and May. However, TCS Filings must be made quarterly on 15th day of July, October, January and May.
Non-filing of TDS Returns within the due date attracts penalty.
FORM 26QB FILING - TDS ON SALE OF IMMOVABLE PROPERTY / TDS ON PROPERTY PURCHASE
From 1st June 2013, when a buyer buys immovable property (i.e. a building or part of a building or any land other than agricultural land) costing more than or equal to Rs.50 lakhs, then buyer has to deduct TDS when he pays consideration to the seller. The buyer has to deduct TDS at 1% of the total sale consideration as per Section 194-IA of The Income Tax Act, 1961. This is applicable even when there is more than 1 buyer or seller.
That amount shall be paid to the credit of the Central Government within a period of 30 days from the end of the month in which the deduction is made and shall be accompanied by a challan-cum-statement in Form No. 26QB.
Also, Buyer shall furnish the certificate of deduction of tax at source in Form No. 16B to the payee within 15 days from the due date for furnishing the Challan-cum-statement in Form No. 26QB under Rule 31A.
There is no need to get TAN registration to file Form No. 26QB.
No deduction shall be made where consideration for the seller of an immovable property is less than fifty lakh rupees.
Consequences of Late filing
- Late Fees : As per Section 234E, Late fee of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS. Late filing fees should be deposited before filing the TDS Return. Rs.200 is a late fee and not a penalty.
- Penalty : As per Section 271H of Income Tax Act,1961, which provides that a deductor shall pay penalty of minimum Rs. 10,000/- to Rs. 1 lakh for not filing the TDS statement within one year from the specified date within which he was supposed to file the statement. Penalty under section 271H will be in addition to late filing fees prescribed under section 234E as above. The penalty is also applicable for filing incorrect TDS/TCS Return.
Advantages
- To avoid further Late Fee and Penalty.
- To comply as per the Provisions of Income Tax Act, 1961.
- The Correct transaction of Property purchase gets reported to the Government through payment of TDS which is also a proof to avail loan to buyer.
Documents
Passport photo
Passport photo of all parties.
PAN Card
PAN Card of all parties
Aadhar Card
Aadhar card of all parties.
Utility Bill
Utility bill of Electricity or Telephone.
Address Proof
Valid Address Proof of all the parties.
Licence
Valid Driving Licence of all the parties.
Terms and Conditions
Terms and Conditions between the parties.
Other Documents
Other documents will be intimated through e-mail.
FAQ
TDS: The Deductees are the suppliers whose total value of supply of taxable goods and/or services under a contract exceeds Rs 250000 exclusive of tax & cess as per invoice. TCS: The Deductees are the suppliers who are the supplying the goods or services through Electronic Commerce Operator.
Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.
TDS full form is Tax Deducted at Source. Under this mechanism, if a person (deductor) is liable to make payment to any other person (deductee) will deduct tax at source and transfer the balance to the deductee. The TDS amount deducted will be remitted to the Central Government.
TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments. Usually, the person receiving income is liable to pay income tax.
The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
Tax Deducted at Source (TDS) is the sum that is deducted from a taxpayer's income like salary, interest from bank accounts, rent etc. If the TDS collected is more than what you owe to the government, you can get a TDS Refund.
TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments : Payment of Salary.
Visit ITD's e-filing home page (ITD e-filing) and login using TAN and Password. After successful login, go to TDS menu >> Upload TDS. In the form provided select the appropriate statement details, Browse the TDS return filing zip file generated using Saral TDS.
In this regard, it may be noted that TCS is not an additional tax but is in the nature of advance income-tax/TDS for which the buyer would get the credit against his actual income tax liability and if the amount of TCS is more than his tax liability, the buyer would be entitled for refund of the excess amount.
Form 27EQ contains all details pertaining to tax that is collected at source. According to Section 206C of the Income Tax Act 1961, this form must be filed every quarter. The form has to be submitted by both the corporate and government collectors and deductors.
TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments : Payment of Salary.
10 crore will be liable to collect tax at source from all the buyers whose purchases during the year is more than Rs. 50 lakhs. This will mean that on each and every invoice, where the sale exceeds Rs. 50 lakhs, there will be a separate charge of TCS from such buyer.