How to file a TDS return for corporate deposits online?

Introduction

Corporate deposits are a popular investment option among investors looking for higher returns than traditional bank deposits. However, like other interest-bearing investments, corporate deposits are subject to TDS (Tax Deducted at Source). In this blog, we will discuss everything you need to know about “How to file a TDS return for corporate deposit? and due dates for TDS returns filing for corporate deposit.

What is a TDS for corporate deposit?

It is a mechanism used by the government to collect tax as a source of income. As per the Income Tax Act, tax is deducted at the source on interest earned on corporate deposits if it exceeds Rs. 10,000 per annum. Tax is Deducted at Source at the rate of 10% on the interest earned, and the remaining amount is credited to the investor’s account. A TDS return is a statement that shows the details of TDS deducted, deposited and paid to the government.

Who needs to file the TDS for corporate deposit?

As per the Income Tax Act, 1961 the person responsible for deducting tax at source on interest earned on corporate deposit needs to file a return for the tax deducted at source. In most cases, this will be the company or financial institution where the corporate deposit is held. However, if the corporate deposit is held with an individual or HUF, then the individual or HUF will be responsible for deducting and filing the TDS returns. 

How to file TDS returns for corporate deposits?

 The process to file a TDS return for interest on a corporate deposit is simple and can be done online. The person responsible for deducting TDS needs to follow these steps:

• Step 1: Visit the website of the Income Tax Department and log in to the e-filing portal using the correct credentials.
• Step 2: Click on the ‘TDS’ tab and select ‘Upload Tax Deducted at Source’.
• Step 3: Fill in the required details, such as the assessment year, the type of form, and the mode of filing.
• Step 4: Upload the TDS returns in the required format and verify it using a digital signature.
• Step 5: Submit the TDS returns and download the acknowledgment receipt for future reference.

Due dates for TDS returns for interest on corporate deposit

The due dates for TDS returns for interest on the deposits are the same as the due dates for TDS returns for other types of income. As per the Income Tax Act, the due dates for the returns are:

• 31st July for the first quarter (April to June)
• 31st October for the second quarter (July to September)
• 31st January for the third quarter (October to December)
• 31st May for the fourth quarter (January to March)

Consequences of non-filing TDS returns for interest on corporate deposit

Non-filing of TDS returns for interest on corporate deposits can lead to various consequences, such as penalties, interest, and legal action. Here are some of the consequences of non-filing TDS returns for interest on corporate deposits:

• The Income Tax Department may impose a penalty of Rs. 200 per day of delay for the non-filing of TDS returns. The penalty can go up to the amount of TDS deducted.
• If the returns for Tax Deducted at Source are not filed on time, the Income Tax Department may charge interest on the Tax Deducted at Source amount from the date of deduction to the date of payment.
• In case of persistent non-compliance, the Income Tax Department may take legal action against the person responsible for deducting and filing TDS returns.

Conclusion

In conclusion, filing a TDS for corporate deposits is an important aspect of income tax compliance. It is the responsibility of the person who deducts tax at source on interest earned on corporate deposit to file the return on time. Failure to do so can result in penalties, interest, and legal action. Therefore, it is important to understand the process of filing TDS returns for interest on the deposits and ensure that they are filed within the due dates for TDS return filing.