Tax deducted at source- penalty, certificate and advantages

Late TDS Return Filing Penalty

The Income Tax Department imposes the following penalties for failure to submit or delays in submitting your TDS return or statements:-

(a) Failing to file your returns:- According to Section 272A (2) of the Income Tax Act, there is a penalty of Rs. 100 can go up to the TDS amount for each day that returns are not submitted.

(b) Not filing your returns by the deadline:- In accordance with Section 234E of the Income Tax Act, a penalty of Rs. 200 will be assessed for each day that the returns are not filed, up to a maximum of the TDS amount.

(c) For failure to file a TDS statement on time:- According to Section 271H of the Income Tax Act, the deductor would be subject to a penalty of between Rs. 10,000 and Rs. 1 lakh if they fail to file a TDS return by the deadline.

(d) For inaccurate information:- If the deductor provides inaccurate information regarding PAN, challan details, TDS amount, etc., under Section 271H of the Income Tax Act, a penalty of between Rs. 10,000 and Rs. 1 lakh would be assessed.

(e) For non-payment of TDS:- Section 201A of the Income Tax Act states that in addition to the penalty, interest will be assessed if TDS is not paid by the deadline. In the event that all or a portion of the tax is not withheld at source, interest will be assessed at a rate of 1.5% per month beginning on the day the tax was deductible and continuing until the day the tax is actually withheld.

80g of the Income tax act allows taxpayers to claim deductions for various donations.

Know more about deduction under section 80g.

How to Check the Status of TDS Deduction

To verify one's TDS status, one must adhere to the instructions listed below:-

Step 1: Go to the Income Tax Department's official website.

Step 2: Enter your information and sign in to the site.

Step 3: The "My Accounts" menu's "view Form 26AS (Tax Credit)" option should be chosen.

Step 4: To get the file, choose the year and PDF format.

Step 5: A password is required to open the PDF file you downloaded. Your PAN's birthdate will serve as the password in this case. Your password would be 05032000, for instance, if your birthday is March 5th, 2000.

Step 6: At this point, you may examine all the TDS deduction information.

Step 7: As long as your PAN is connected to it, you may utilise your bank's online banking service to verify if your TDS has been taken out.

How to Apply for a TDS Refund

On the website for income tax, people may seek TDS refunds. But you must submit income tax returns and provide proof of your TDS refund. The Income Tax Department will handle processing the TDS refund upon ITR filing. In less than six months, the bank account might get the reimbursement. On the Income Tax Department's official website, individuals may also check the status of their refund.

An explanation of TDS certificates

Both Form 16 and Form 16A TDS Certificates are available. A certificate detailing the sum that has been deducted as tax is required to be given to the deductee under Section 203 of the Income Tax Act of 1961. This form must be made available to the deductee by the deductor.

(1) For the salaried class:- Employers must give Form 16s to salaried workers that include a statement of the TDS deductions that have been made. Numerous data, including tax computation, tax deduction, and TDS payment, are included in Form 16. Before the end of the next fiscal year on May 31, employers must provide this form to their staff.

(2) For non-salaried class:- Form 16A, which includes all the information on tax computation, TDS deduction, and payments, is given to the deductee by the deductor.

12a registration is beneficial for NGOs.

Benefits of TDS

The following are a few benefits of TDS:-

(a) It makes sure that tax payments are not made illegally.

(b) TDS provides the government with a consistent stream of income.

(c) Because the tax liability is automatically deducted, it is considerably more convenient for the deductee.

(d) The responsibility for tax collection falls mainly on tax collection agencies.

Get more to know at 80g registration.