Tips to avoid Defaults in TDS Returns

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Tips to avoid Defaults in TDS Returns

§  Make sure taxes are deducted on time and at correct deduction rates /amount. The applicable section under which the deduction falls should be correctly applied.

§  Tax needs to be deducted either when payment is made or when amount is credited, whichever is earlier. It implies that tax needs to be deducted on the same day when advance payments are made. Late deduction is a default and will attract interest.

§  Taxes deducted during the course of the month, should be deposited on time. Typically it is by 7th of the following month. The only exception is that for deductions in March, it needs to be deposited by 30th April.

§  TDS Returns needs to be filed on completion of each quarter. Returns for Salary & Non-Salary TDS is to be filed separately in Form 24Q & Form 26Q respectively.

§  Use a proper TDS Return preparing software / tool that helps in predicting possible errors / defaults. This would prevent unnecessary hassles later.

§  Make sure TDS Returns are filed on time to avoid penalty on delayed filing. Typically, TDS Returns are to be filed by the end of the month following the quarter. Returns for March quarter is to be filed by 31st May.

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