TDS or Tax Deducted at Source is a source of collecting tax by the Government of India and it is done at the time of every transaction. This type of tax is usually deducted at the time when the expense is incurred.

What is TDS Return?

Besides depositing the tax, the deductor must also do TDS Return Filing in India. It is a quarterly statement which has to be given to the I-T department and it is mandatory for deductors to present or submit a TDS return at the expected time.

Here are details needed to file TDS returns are:

  • PAN of the deductor and the deductee
  • Tax amount paid to the government
  • Information of TDS challan
  • Others, if any

Who is required to deduct TDS?

There is no need to deduct TDS if the expense is incurred an individual or HUF whose books are not liable to be audited. But, if the rental payments of an Individual / HUF exceed Rs.50,000/- per month, they are required to deduct TDS. If the deductee does not own a PAN, TDS can be deducted at a higher rate of 20%.

TDS Return Filing

TDS returns must be filed in a particular time limit, below are mentioned period when TDS returns have to be done every year.