Popular reasons for shifting out from outsourcing to preparing TDS Returns in-house

Based on a sample survey of around 100 organizations that shifted out of outsourcing, some of the popularly cited reasons included the following:

  • Receiving a number of Default Notices for earlier filed Returns
  • On receiving Default Notices, low priority by the agency for its rectification
  • Little time to check data before filing Returns lead to errors that were easily avoidable
  • Careless data entry errors are leading to Defaults
  • Lack of coordination leads to delayed filing at times
  • Much easier, faster and hassle-free doing it yourself

Visit www.tdsman.com and download the free trial. Prepare one return and experience it … our helplines 033-22875500, 9836490007 will assist you in case of any difficulty

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Unused Challan value can be used for future quarters / financial years

Unused tax paid in a challan can be used in the remaining quarters of the current financial year and can also be carried forward to the next year. For Example, unused tax payment in Q1 of FY16-17 can be used for payment of TDS for Q2, Q3 and Q4 of FY 16-17 and if required also in FY 17-18.

Also, unused tax paid in a challan can be used for paying the TDS defaults of previous periods. For example, the unused amount paid in Q1 of FY 16-17 can be used for any old pending TDS payment.

Same Payment Challan can be used for TDS under different Sections/ Heads

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Fees for Late Filing of TDS Returns

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Fees for Late Filing of TDS Returns are as follows:

Section 234E-Levy of Fees 

  • Failure to submit TDS return on time will result in fees on the deductor.
  • If you delay or forget to file your TDS return, fees of Rs. 200 per day will be levied on the deductor, as long as TDS return is not filed.
  • The levied amount of fee is not supposed to exceed the TDS deductibles.
  • Prior to TDS filing, such fee should be paid and it should be reflected in the TDS return.
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Tips to avoid Defaults in TDS Returns

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  • 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 the amount is credited, whichever is earlier. It implies that the tax needs to be deducted on the same day when advance payments are made. The 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 the 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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