For all salaried working professionals, filing TDS returns is part and parcel of their responsibility. TDS returns for salary are filed to report the amount of tax deducted from the employee's salary by the employer and deposited with the government.
If you are an employer, you are responsible for deducting TDS from your employees' salaries and depositing it to the government. Filing TDS returns correctly and on time is important to avoid penalties and notices from the tax department. However, many people make some common mistakes while filing TDS returns for salary, which can cause problems. Let’s discuss five of these mistakes.
Mistake 1: Using the wrong form
The first mistake to avoid while filing TDS returns for salary is using the wrong form. Form 24Q is the official form for TDS returns on salary. It is a statement which must be filed by the deductor and submitted quarterly. This form requires the details of the deductor, deductee, and challan. Using any other forms to file TDS returns will lead to the form being rejected or processed incorrectly.
Mistake 2: Not verifying forms
Besides using the wrong form for TDS returns, not verifying the forms before submitting them is another mistake that people make while filing TDS returns for salary. You should always verify the forms with income and TDS details before filing. Form 16 and Form 16A, which are is a certificates issued by the employer and the deductor respectively, showing the details of salary income and TDS deducted also requires verification before submission. If there is any discrepancy or error in these forms, it should be rectified first thing.
Mistake 3: Inputting incorrect TAN
TAN stands for Tax Deduction & Collection Account Number, which is a unique alphanumeric code assigned to each deductor by the Income Tax Department. TAN is used to track TDS payments and ensure that the correct amount is deducted from the employee's salary. If an incorrect TAN is used, the TDS return will be rejected. Therefore, it is essential to enter the correct TAN while filing TDS returns for salary.
Mistake 4: Selection of the wrong deductor
While filing TDS returns for salary, selecting the wrong deductor type can result in incorrect tax deductions and penalties. It is important to carefully check the deductor type before filing the return. The deductor details are information about the person or organization who deducts tax from your income and pays it to the government. If an incorrect deductor is selected, the return should be edited or filed again with the correct information, as it affects the payment mode and due date of your TDS.
Mistake 5: Not filing on time
Another mistake to avoid while filing TDS returns for salary is not filing them on time. TDS returns have to be filed within the prescribed due dates. The due dates are July 31st, October 31st, December 31st, January 31st, and May 31st. Failing to file TDS returns on time can result in a fine of ₹200, a penalty of ₹10,000 up to ₹1 lakh, and even an interest rate of 1% per month. Therefore, it is important to file TDS returns within the prescribed due dates.
Filing TDS returns for salary is a mandatory and important task that should be done carefully and correctly. By avoiding these five common mistakes, you can ensure that the TDS return is filed smoothly and accurately. This will help avoid any hassle or trouble and also ensure that employees get their TDS credit on time.
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