How to File a TDS Return?

It is a known fact that every person, who has earnings exceeding the non-taxable limit of annual income should pay income tax and file income tax returns periodically in-order to avoid being sued by the government. Filing income tax returns is actually a responsibility of every dutiful citizen. TDS - Tax Deducted at Source is the amount cut from your earnings by the employer, institution, governmental institutions or any other source where you obtain your income from. This is cut because you are meant to pay the tax before hand. The income tax act makes it mandatory for the payer of such income to cut a stipulated percentage of the income by the method of income - tax and give only the balance amount to the receiver of the income. The tax amount deducted by the payer at the source itself is to be deposited in the Government treasury to the credit of Central Govt. within certain time specified by the income tax acts. The amount so deducted as TDS from the income of the receivers is deemed to be the amount paid as income tax by the receivers when they file their income tax assessment. Income coming from numerous sources is subjected to TDS. Few of the incomes which come under the TDS act are salary, interest, dividend, interest on securities, commission, brokerage, lottery wins, money won in horse races, rent, fees for professional services, fees for technical services etc.

In-order to file TDS you can go for e-TDS now a days. To file e-TDS return, preparation of the data format that is issued by e-filing administrator which is available on the Income-Tax Department websites. You can find small validation software which is available with the data structure. You have to validate the data structure of the e-TDS return which you have prepared and which has the all the required features. Every e-TDS return file (Form 24, 26 or 27) must be stored in a separate CD or floppy. Every e-TDS return file should have a duly filled Form 27A attached with it and signed by an authorized signatory. Every e-TDS return file must be in a single CD/floppy. It must not span across multiple floppies. If the size of the e-TDS return file is larger than the space available in a single floppy, it must be submitted in a CD. If you want to compress the file it should be done using Winzip 8.1 or ZipltFast 3.0 compression utility only which would guarantee fast and smooth acceptance of your e-TDS return file. Every CD/ floppy should have a label attached to it stating the name of the deductor of your tax in advance, his TAN Form.no. 24, 26 or 27 and the period to which the return is meant for. You must ensure that there are no strikings or overwritings on Form 27A. If there are any such mistakes they must be ratified by an authorized signatory. No bank challan. For Form 26 and 27 deductor need not furnish physical no deduction copy but Form 24 needs it. Form 49B is required if TAN is not there.

For more information of tax returns visit: Income tax calculator, Income Tax Return