TDS return is a way of collecting income tax in India under the income tax act of 1961. It is always required to be filed by the assesse who has deducted the TDS . These are required to be filed after specified intervals and the details are to be furnished in these returns which includes field like TAN No, TDS Payment, amount deducted, type payment, PAN No etc .
In order to file for TDS return, there are different forms depending upon the purpose of deduction of TDS . The various forms are :
Form 24Q – statement for TDS from salaries
Form 26Q – statement for TDS on all payments except salaries
Form 27Q – statement for deduction of tax from interest , dividends or any other sum that is payable to the non residents
Form 27EQ – statement of the collection of tax at source
A taxpayer should always file his TDS return on or before the due date . But if he files his TDS return either late or does not file it, he might invite 2 penal consequences : 1. Fee for late filing under section 234E and 2. Penalty for late filing or non filing of TDS statement u/s 271H .
In case of late filing of TDS return, as per section 234E a taxpayer will be liable to pay a penalty of Rs 200 per day till the time the default continues but the total penalty computed @200/day should not exceed the total amount of tax deducted .
And in case of non filing of TDS return, a penalty of less than Rs 10000 and not more than Rs 100000 should be levied on him in case the return has not been filed within 1 year from the due date of filing of return or if incorrect information has been delivered.
Also as per section 271H, when a person fails to file the statement of tax deducted at source on or before the due dates prescribed , then the assessing officer may direct such person to pay penalty under section 271H and this will be in addition to the late filing fees prescribed under section 234E .
However it is always advised that the TDS return should always be filed on time to avoid the late fee under section 234E and apart from late filing fees and the penalty under Section 271H .