TDS filing refers to the process of filing Tax Deducted at Source (TDS) returns with the Income Tax Department of India. TDS is the amount deducted by an individual or an entity while making payments such as salary, commission, rent, interest, etc., as per the rates prescribed by the Income Tax Act, 1961.
The TDS return has to be filed by the deductor (person making the payment) every quarter on a specified due date. The TDS return includes details of TDS deducted, deposited, and other related information.
The process of TDS filing involves the following steps:
- Collecting and verifying TDS details from the deductor's records.
- Generating the TDS return file in the format specified by the Income Tax Department.
- Validating the TDS return file using the File Validation Utility (FVU) provided by the NSDL e-Governance Infrastructure Limited.
- Uploading the validated TDS return file to the Income Tax Department's website using the e-filing facility.
- Paying the TDS amount to the government through the e-payment facility provided on the Income Tax Department's website.
Non-compliance with TDS provisions can result in penalties and interest charges. Therefore, it is essential to ensure accurate and timely TDS filing to avoid any legal issues.