Apart from depositing the tax, the deductor should also file a TDS return.

TDS return is a quarterly statement to be given to the I-T department. It is compulsory for deductors to submit a TDS return on time. The details required to file TDS returns are:

• PAN of the deductor and the deductee.
• Amount of tax paid to the government.
• TDS challan information.
• Others, if any.

TDS return can be filed by employers or organizations who avail a valid Tax Collection and Deduction Account Number (TAN). Any person making specified payments mentioned under the I-T Act are required to deduct tax at source and needs to deposit within the stipulated time for the following payments :

• Payment of Salary.
• Income by way of “Income on Securities”.
• Income by way of winning lottery, puzzles and others.
• Income from winning horse races.
• Insurance Commission.
• Payment in respect of National Saving Scheme and many others.

According to Section234E, if an assessee fails to file his/her TDS Return before the due date, a penalty of Rs 200 per day shall be paid by the assessee until the time the default continues. However, the total penalty should not exceed the TDS amount.

If an assessee has not filed the return within 1 year from the due date of filing return or if a person has furnished incorrect information, he/she shall also be liable for penalty. The penalty levied should not be less than Rs 10,000 and not more than Rs 1,00,000.

1.TAX DEDUCTION ACCOUNT NUMBER (TAN) NOT UPDATED

Error: Tax Deduction and Collection Account Number (TAN) is a 10 digit alphanumeric number issued to persons who are required to deduct or collect tax on payments made by them under the Indian Income Tax Act, 1961. Thus in case the TAN is incorrectly mentioned or not updated in the system, any payment made by the assesse would not reflect in the company’s tax returns and the same would not be validated by tax department.

Solution: One must update and update the TAN properly in the department portal and in all the returns. In case one does not have TAN then the company must apply for the same and obtain the number.

2.WRONG CHALLAN DETAILS

Error:  In TDS return, TDS Payment challan contains all the major details viz.

• Date of payment.
• Amount of payment of tax.
• Section under which the tax is deposited.
• Bank code through which the payment is made.
• These fields are important while filing TDS return and if these details are not properly entered then the return would show mismatch data and would not form a valid return.

 Solution: One must enter all challan details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.

3.WRONG PERMANENT ACCOUNT NUMBER (PAN)

Error:  PAN is a unique 10-character alpha-numeric identifier, issued to all judicial entities which serve as an important proof of identification for the tax payer. In case PAN of the assesse is wrongly mentioned then the amount of tax paid would not be shown under his/ her name which will ultimately amount to non-payment of tax by the assesse.

Solution: One must enter proper PAN, If PAN is incorrectly mentioned in the return then the assesse has to revise the return by providing correct and accurate PAN details. In case assesse doesn’t have a PAN then he or she must apply for the same.

4.WRONG SECTION

Error: TDS is paid section wise i.e. 194C for TDS under contractor, 194I TDS on rent, 194A TDS on interest. Thus if TDS section is changed then the amount of TDS paid won’t reflect properly and would show a mismatch in the statement.

Solution: One must enter all challan details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.

5.WRONG ADDRESS OR EMAIL ADDRESS

Error: Tax department requires details for the deductor viz., Name, address and email address of the concerned person responsible for deducting. While filing TDS return, one must provide correct and valid and correct address as well as email address. If the same is not given the return would be rejected.

Solution: One must enter all details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.

6.DATE OF DEPOSIT MUST BE SAME AS DATE OF BANK CHALLAN NO

Error: In TDS return, date of deposit of TDS made must be same as challan date given by bank. If challan details are not properly entered the same will show mismatch data.

Solution: One must enter all details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.

7.MISMATCH TDS AMOUNT FOR DEDUCTOR AND DEDUCTEE TAB

Error: The sum of TDS, total tax deposited amount as per deductee annexure must match the total of tax deposit amount as per Challan/Transfer Voucher number. In case the same doesn’t match the file won’t be uploaded on tax portals

Solution: One must enter all details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.

8.CORRECT INCOME DETAILS

Error: In TDS return, the TDS actual deposited and paid must match TDS to be deducted on specified income under respective section and respective rates.

Solution: One must enter all details properly. If the return is rejected due to wrong or mismatch details then one must revise the respective return with correct details and file again.

9.INCORRECT RESPONSIBLE PERSON DETAILS

Error: Under TDS return, all details for a representative of the company or an organization must be submitted. Thus these details form important part for completion of the return.

Solution: One must check and enter proper details. In case there are any changes then one must enter the updated details for the respective responsible person viz., name, address, contact information etc

10.INCORRECT DEDUCTOR TYPE

Error: In TDS return, one must properly fill in the deductor type viz., company, individual, trust etc.

Solution: One must check and enter proper details. In case there are any changes then one must enter the updated details