A Tax Deduction contains details about individual payments and deductions to deductees. One deductee can have multiple deductions in a single quarter. Each challan can have several Tax Deductions associated with it. Along with deducting the tax and depositing the tax in the government account, the deductor is also required to file the return which has to be done in the form of a quarterly statement to the Income Tax department that is called TDS return. Ultimately TDS is not only to be deducted but to be filed.
A TDS return contains the following information:
- Year, Quarter, and Type of TDS (Salary, Non-Salary, etc)
- Deductor details
- Challan details
- Deductee and Tax Deduction details
- Salary Details for all employees in the Financial Year (in case of a Q4 Salary Return)
The compulsion of filing TDS return electronically is applicable on the following class of assesses:-
- All corporate Deductors as well as Collectors
- All govt. Deductors as well as Collectors
- Where deductor/collector is required to get their accounts audited u/s 44AB of Income Tax Act, 1961 in the immediately preceding financial year.
- Where the no of deductees/ collected record in a quarterly statement for one-quarter of the immediately preceding FY is equal to or greater than 20.
All other Assesses other than mentioned above can furnish their TDS return either in physical format or electronic format.