Through TDS income-tax is directly deducted from the sources where it is earned. This is the best method of tax collection in India. Central Board for Direct Taxes is the nodal agency for tax collection which is guided under the Income Tax Act, 1961. This is managed by department of revenue under IRS, Ministry of Finance, and Government of India.
In simpler terms this tax is the amount which is deducted from the person (Employee or Dedcutee) who has been paid by employer. This procedure is applicable for specific types of payments as specified in the Act.
This is applicable for certain types of payments, as applicable under the Act. Process of TDS is affected at the source where income arises. Wherever this amount is to be deducted a stipulated percentage of such income is considered for deduction. Rules of Income Tax Act are followed and if there has been excess amount then it is returned to the taxpayer.
Who is Eligible For TDS Return Filing
For all corporate houses, government deductors/collector it is mandatory to file the taxes under the Income Tax Act, 1961. They are required to file their income tax through online media like (e-TDS or TCS). Other taxpayers can file their taxes in physical form or in electronic form as they wish.
What is Annual e-TDS/TCS Return?
There are specific formats for annual e-TDS/TCS return. This has been defined under section 206 of the Income Tax Act or TCS return under section 206 of the Income Tax Act. E-TDS and TCS are prepared in specific types of form like in Form 24, 26 or 27 and Form 27E respectively. These forms are in electronic media. These returns should be accompanied with signed verification in a CD/Pen Drive. Form 27A should be submitted in case of annual TDS while Form No. 27 should be submitted in case of Annual TCS return.
Quarterly e-TDS/TCS Statement Defined
Quarterly statements have been defined under section 200 (3)/206C, amended by Finance Act, 2005. These are filed in electronic form. Quarterly statements filling have been mandated by Income Tax Act 2005-06 onwards. Forms 24Q, 26Q and 27Q are used for quarterly e-TDS and form 27E-Q is used for Quarterly e-TCS statement.
TDS Return Filing
should filed in CD/Pen Drive and should be accompanied with signed verification. These should be accompanied with Form No.27A in both the cases whether these are e-TDS or TCS statements.
TDS Return Form –