TDS return on interest other than securities

Introduction

Tax Deducted at Source (TDS) is a tax collection mechanism where a certain percentage of tax is deducted by the person or entity making the payment at the source of income. The Income Tax Act, of 1961, mandates the collection of TDS on various types of income. The return on interest other than securities is one such type of income from which TDS is deducted. In this article, we will discuss what is a TDS on interest other than securities, who needs to file it, the rate of TDS on Interest, how to file it, and the due date for filing a TDS return.

What is TDS on interest other than securities?

It refers to the tax deducted at source on interest earned from sources other than securities. It includes interest earned on bank deposits, fixed deposits, loans, and other types of interest income. TDS is deducted by the payer at the prescribed rate before making the payment, and the same is deposited with the government as per the provision of the Income Tax Act, of 1961.

Who needs to file TDS on interest?

The person or entity who is responsible for deducting the TDS on interest other than securities is required to file the return. This includes individuals, firms, companies, and other entities who have deducted TDS at the source.

What is the rate of TDS on Interest?

The rate of TDS on interest other than securities varies depending on the type of income, the amount of income, and the status of the deductee. The current rate of TDS on interest income other than securities is 7.5% for resident individuals, 10% for Hindu Undivided Families (HUFs), and 20% for non-residents.

How to file TDS return on interest other than securities?

1. Visit the official website of the Income Tax Department
2. Register yourself as a new user and login
3. Click on the “TDS” tab and select “Upload TDS”
4. Enter the required details like TAN, financial year, form type, and quarter
5. Upload the TDS return file in the required format
6. Verify the details and submit the form
7. Pay any applicable late fees or penalties
8. Download the acknowledgment receipt for future reference.

Due date for filing a TDS return on interest

The due date for filing a TDS return on the interest other than securities is different for different quarters. The due date for filing TDS returns for the first quarter is 31st July, the second quarter is 31st October, the third quarter is 31st January, and the fourth quarter is 31st May.

Conclusion

In conclusion, TDS return on interest other than securities is a crucial aspect of tax compliance that needs to be taken seriously. The Income Tax Department has made it mandatory to deduct TDS on various types of income, including interest income. Therefore, it is important to understand the provisions of the Income Tax Act, 1961and comply with them by filing the return on time.