TDS/TCS RETURN
Tax Deducted at Source (TDS)- 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. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.
Tax Collected at Source(TCS)- TCS is an additional amount collected as tax by a seller of specified goods from the buyer at the time of sale over and above the sale amount and is remitted to the government account. As per Income Tax Act 1961 certain persons, being the sellers must collect a specified percentage of tax (as given in para 8 below) at the time of receipt of amount from their buyers or at the time of debiting of the account of the buyer whichever is earlier. Section 206C of the Income Tax Act mentions the particulars of goods, on sale of which tax needs to be collected from the purchasers.
A deductor or collector has to deposit deducted or collected TDS/TCS to the Government and the details of the same have to be filed in the form of TDS/TCS Return. TDS/TCS returns are due on quarterly basis. The due date for the payment of TDS Deducted is 7th of the next month for all months except for March whose due date is 30th April.
TDS/TCS Return Form Type
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TDS Form 24Q: An employer deducts TDS while paying salary to an employee under section 192 of the Income Tax Act, which has to be submitted on a quarterly basis specified in the form 24Q.
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TDS Form 26Q: It is used to file TDS Details on payments made other than salary. When a tax payer pays taxes, the payee deducts TDS on certain occasions. TDS amount that has been deducted has to be submitted on a quarterly basis.
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TDS Form 27Q: It is used to deduct on payment other than salary made on Non-Residents of India (NRI) and Foreigners. Form 27Q is required to submit on a quarterly basis.
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TDS form 27EQ: It 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 on quarter basis.
Due Date of filing TDS/TCS Return
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Quarter 1 (1st April- 30th June): On or before 31st July
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Quarter 2 (1st July- 30th September): On or before 31st October
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Quarter 3 (1st October- 31st December): On or before 31st January
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Quarter 4 (1st January- 31st March): On or before 31st May