Tax Deducted at Source (TDS) is a mechanism through which the government collects tax at the source of income generation. Businesses and individuals responsible for deducting TDS must file TDS returns periodically. Filing TDS returns online can be complex due to strict compliance rules, but with proper knowledge and guidance, errors can be avoided.

Understanding TDS Returns

TDS returns are statements that businesses must file with the Income Tax Department, detailing the TDS collected and deposited. They contain:

• PAN details of deductor and deductees.
• TDS amount deducted and deposited.
• Details of payments made to vendors, employees, or service providers.

Failing to file TDS returns correctly or on time can result in penalties and legal issues.

Steps to File TDS Returns Online Without Errors

Step 1: Obtain a Valid TAN (Tax Deduction and Collection Account Number)

• Businesses must have a valid TAN issued by the Income Tax Department.
• Without TAN, they cannot deduct TDS or file returns.
• TAN should be quoted in all TDS-related documents.

Step 2: Collect and Verify Deductee Details

• Ensure accurate PAN details of all deductees (employees, vendors, contractors, etc.).
• Incorrect PAN entries can result in higher TDS rates and return rejections.

Step 3: Deduct and Deposit TDS Before Due Date

• TDS must be deducted while making payments and deposited with the government before the due date.
• Due dates for TDS deposit:
  • 7th of the following month for most payments.
  • 30th April for the last quarter of the financial year.

Step 4: Prepare the TDS Return Using Approved Software

• Use government-approved TDS return preparation software like Return Preparation Utility (RPU) or third-party software.
• Fill in details of deducted and deposited TDS.

Step 5: Validate the TDS File Using File Validation Utility (FVU)

• Upload the return file to the File Validation Utility (FVU) for error checking.
• If errors exist, correct them before submission.

Step 6: Submit TDS Return Online via TRACES Portal

• Log in to TRACES (TDS Reconciliation Analysis and Correction Enabling System).
• Upload the validated TDS return file.
• Acknowledgment receipt is generated upon successful filing.

Step 7: Download and Verify the TDS Acknowledgment

• Check the TDS Acknowledgment Receipt for confirmation.
• Ensure that all details match with company records.

Step 8: Issue TDS Certificates to Deductees

• Form 16 (for salaried employees) and Form 16A (for non-salaried payments) must be issued.
• These forms allow deductees to claim credit for the TDS deducted.

Common Mistakes to Avoid When Filing TDS Returns

Incorrect PAN or TAN Entry

• Ensure all PAN and TAN details are accurate to prevent higher TDS deductions and rejection of returns.

Late Filing of TDS Returns

• Filing after the due date leads to penalties of ₹200 per day, up to the TDS amount deducted.

Mismatch of TDS Payments and Returns

• The TDS deposited should match the figures reported in the returns.

Not Validating the TDS File

• Using the File Validation Utility (FVU) before submission helps eliminate errors.

Failure to Issue TDS Certificates

• Delays in issuing Form 16/16A can cause inconvenience to deductees and non-compliance issues.

How ASK ASSOCIATES Makes TDS Filing Easy

ASK ASSOCIATES provides end-to-end TDS compliance services, ensuring hassle-free filing:

✔ TAN Registration & Management – Assistance in obtaining and managing TAN.
✔ Accurate TDS Deduction & Payment – Ensuring correct tax deduction and timely deposit.
✔ Error-Free Return Filing – Using advanced validation tools to eliminate mistakes.
✔ TRACES Portal Assistance – Uploading and managing TDS filings on TRACES.
✔ TDS Compliance Audits – Reviewing financial records to ensure compliance.
✔ Timely Issuance of TDS Certificates – Helping businesses issue Form 16/16A without delays.

With ASK ASSOCIATES, businesses can focus on operations while we handle the complexities of TDS compliance.