All you need to know about Filing Revised TDS Return

Introduction

It’s important that you carefully go through your TDS statement when you receive it. You have the flexibility to submit the document for revision if there are any mistakes or alterations. These inaccuracies maybe the result of improper deductions, challan details, or a deductee’s PAN information. The TDS return will need to be updated at time. You will need the consolidated file and justification report in order to make changes to your TDS returns. This article mainly focuses on the benefits of filing TDS return, a revised TDS return and the process to file revised TDS return.

What is TDS?

The TDS idea was introduced with the intention of collecting tax at the source of revenue itself. TDS stands for Tax Deducted at Source. According to this idea, a deductor who is required to make payment to another person (deductee) must deduct tax at source and submit the money to the Central Government. Based on a TDS certificate, the deductee from whose income tax source deductions have been made is entitled to get credit for the deducted amount.

What are the benefits of filing TDS return?

There are several benefits of filing TDS return:

• The taxpayers are prevented from taxation as a result.
• It ensures that the government’s revenue comes from a consistent source.
• It increases the base tax collection.
• The automated tax deduction provided by the TDS system makes it convenient for both the deductee and the deductor.
• It eases the stress of making huge taxes. The overall tax can be paid more easily by dividing it up across months.

What is Revised TDS Return?

The individual who is deducting the TDS must file a TDS Return with NSDL on a regular basis. The deductor can file a Revised TDS Return to update the previous return if he or she finds an an error or necessary changes in the return.

Process to file revised TDS return

The following is a step-by-step process to file revised TDS return:

1. It is necessary to fully fill out Form 27A first. In case a hard copy of the form is filled out, it must be verified along with the electronically filed e-TDS return.
2. The tax deducted at source and the total amount paid must be accurately filled out.
3. Form 27A must include the TAN of the company filing the TDS returns. Using the wrong TAN (Tax Collection Account Number) makes the verification process difficult.
4. The TDS returns must include the correct challan number, the payment method, and the tax information. There will be a conflict if the date of payments or challan numbers are given inaccurate and the TDS reports may need to be filed again.
5. In order to ensure uniformity, the fundamental form for e-TDS filing must be filled.  7-digit BSR must be entered for convenience in tallying.
6. TDS returns must be properly submitted to the TIN-FC. All TIN-FCs are managed by the National Securities Depository Limited(NSDL). If returns are filed online, they can be done through the NSDL TIN’s main website.
7. If TDS returns are submitted online, the deductor must use level 2 digital signature.
8. One will receive a token number or provisional receipt if all the information you have been provided is accurate. This acknowledgement serves as proof that your revised TDS Returns have been submitted. In case of rejection of your TDS returns, a non-acceptance memo will be provided along with the reasons for the rejection. The TDS Returns need to be submitted again in such circumstances.

How many TDS Return Statement corrections or revisions are allowed?

1. A regular TDS statement will only be acknowledged at the TIN central system once, but any updates to the TDS Return statement must be provided multiple times to integrate changes in the regular TDS report.
2. Every previous correction must be updated in the TDS report on which the amendment is to be prepared.
3. Only the modifications, additions, and deletions in rectified statements accepted at the TIN central system must be taken into consideration.

TDS return may be corrected as many times as needed. There is no due date by which a TDS return has to be revised. Hence, as soon as an error is discovered, you should file a correction return.

Documents required to file revised TDS return

• General Documents required to file revised TDS return

1. TAN (Tax Collection Account Number) Details
2. TDS certificate
3. Tax payment Challans
4. PAN card information
5. Date of the incorporation of the company
6. Details of every bank account
7. Number of transactions required to file TDS returns
8. Notice information from the Indian Income Tax Department

• Additional documents required to file revised TDS return – Income from Salary

1. Form 16
2. Salary Certificate

• Additional documents required to file revised TDS return – Interest Statement

1. TDS Certificate from Bank
2. TDS Certificate Passbook/Bank Statement for Interest on Savings Account for recurring deposits.
3. Interest Income Statement for FD

• Additional documents required to file revised TDS return – Property Related

1. Rent or Property Tax Records
2. Bank-issued interest certificates for mortgage loans
3. Information about co-owners, if any
4. Evidence of the property’s address

• Additional documents required to file revised TDS return – Profits from capital

1. A reserve statement is necessary if you trade shares.
2. Sales and purchase agreements with the stamp of property for an area of land or a building
3. The reinvestment purchase deed is necessary if you want to be free from taxes on capital profits.
4. Capital assets require purchase price, a cost of improvement, and a value at sale.
5. Documents for the cost of improvement
6. Information about the expenses associated with the transfer

• Additional documents required to file revised TDS return – Tax Saving Investments

1. Receipts of tuition fees
2. Certificate of Home Loan Repayment
3. Copy of a PPT Passbook
4. Payment Receipt of Life and Medical Insurance
5. Philanthropic receipts (Donation)
6. Deposit receipts of the senior citizen savings program

FAQs on Filing Revised TDS Return 

1. How many times can I file a revised TDS statement?

A correction in your TDS statement can be filed as many times as you want to change in the regular TDS statement but it will only be accepted once at the TIN central system.

2. Is there a penalty for a revised TDS return?

If the deductor submits an inaccurate TDS return, a penalty under section 271H may be charged.

3. What effects does filing an amended return have?

You will be required to pay a penalty if your TDS return hasn’t been filed within an year. The range of the fine is between Rs. 10,000 to Rs. 1,000,000. The tax department may notice a change if it involves undeclared income or other major corrections made to the new return, and the tax filed on the earlier return may be subject to further scrutiny.

4. How long does it take for a revised return?

On August 1,2022, the ITR verification deadline was shortened by the Income Tax Department from 120 days to 30 days.

5. Can I update the TDS return with a fresh challan?

Yes. You can include a challan with your filed e-TDS return.

6. What distinguishes a revised return from a modified return?

A revised return cannot be filed without first filing an updated return. While you can file an updated return even if you have not filed your original return.