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How to Calculate and File Your TDS Return on Salary

 

Filing your TDS (Tax Deducted at Source) return on salary can seem challenging, but with the right guidance, it becomes a straightforward process. In this blog, we will walk you through the steps to calculate and file your TDS return on salary. Whether you’re an individual or a business owner, this guide will help you comply with tax regulations easily. If you need professional help, Taxcellent, a trusted CA service provider in Delhi, is here to assist.

What is TDS on Salary?

TDS on salary is the tax deducted by an employer from an employee’s salary before it is paid. The employer is responsible for depositing the deducted amount with the government on behalf of the employee. It ensures timely tax collection by the government.

Why is Filing TDS Return Important?

Filing TDS returns on salary is mandatory for businesses and individuals to remain compliant with tax laws. Here are the main reasons why it’s important:

  • Avoid Penalties: Filing TDS returns on time helps avoid late fees and penalties imposed by the Income Tax Department.

  • Accurate Tax Records: Filing ensures that the correct tax has been deducted and credited to the employee’s PAN.

  • Smooth Tax Refunds: Filing accurate TDS returns makes claiming refunds easier during income tax filing.

Steps to Calculate TDS on Salary

Follow these steps to calculate TDS on salary:

1. Determine Gross Salary

  • Include basic salary, allowances, bonuses, and perquisites.

2. Calculate Exemptions

  • Identify exemptions under Section 10, such as:

    • House Rent Allowance (HRA)

    • Leave Travel Allowance (LTA)

    • Transport Allowance

3. Account for Deductions

  • Deduct eligible investments and expenses under Chapter VI-A, including:

    • Section 80C: Investments in EPF, PPF, and LIC

    • Section 80D: Medical insurance premiums

    • Section 80E: Education loan interest

4. Calculate Taxable Income

  • Subtract exemptions and deductions from the gross salary to determine taxable income.

5. Apply Tax Slabs

  • Apply the applicable income tax slab rates to calculate the total tax liability.

6. Determine Monthly TDS

  • Divide the annual tax liability by 12 to determine the monthly TDS to be deducted.

How to File TDS Return on Salary

Filing your TDS return is a systematic process. Here are the steps to file your TDS return:

1. Gather Required Documents

Ensure you have the following:

  • TAN (Tax Deduction and Collection Account Number)

  • PAN details of employees

  • Salary and deduction details

  • Challans for TDS payment

2. Use TDS Return Filing Software

  • Download TDS return preparation utility from the Income Tax Department’s website or use trusted third-party software.

3. Fill in Form 24Q

  • For TDS on salary, you need to fill Form 24Q. This form includes:

    • Details of the employer (TAN, PAN, address)

    • Salary details of employees

    • Tax deduction details

4. Validate the Form

  • Use the File Validation Utility (FVU) provided by the Income Tax Department to validate your TDS return file.

5. Submit the TDS Return

  • Submit the validated TDS return file to the TIN-FC (Tax Information Network - Facilitation Centre) or upload it online through the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal.

Due Dates for Filing TDS Return on Salary

Filing your TDS return on time is crucial. Below are the due dates:

  • Quarter 1 (April – June): July 31

  • Quarter 2 (July – September): October 31

  • Quarter 3 (October – December): January 31

  • Quarter 4 (January – March): May 31

Filing after the due date may attract penalties and interest.

Common Mistakes to Avoid

When filing your TDS return, avoid these common mistakes:

  • Incorrect PAN or TAN details

  • Missing deadlines

  • Errors in salary or deduction details

  • Incorrect challan details

  • Failing to validate the TDS return file

Benefits of Hiring a CA Service Provider in Delhi

Managing TDS calculations and filing can be time-consuming and complex. Hiring a professional CA service provider, such as Taxcellent in Delhi, offers these benefits:

  • Accurate Calculations: Ensure precise TDS calculations and avoid errors.

  • Timely Filing: Meet all deadlines without worrying about penalties.

  • Expert Guidance: Get advice on tax-saving investments and compliance.

  • Stress-Free Process: Save time and focus on other priorities while experts handle your taxes.

Why Choose Taxcellent?

Taxcellent is a leading CA service provider in Delhi with years of experience in tax compliance. Here’s why you should choose Taxcellent:

  • Professional team of chartered accountants

  • Affordable and transparent pricing

  • End-to-end tax compliance services

  • Personalized solutions for businesses and individuals

  • Excellent customer support

Tips to Simplify TDS Filing

  1. Use reliable TDS software to prepare and file returns.

  2. Maintain accurate records of employee details and tax payments.

  3. Regularly check updates on TDS rules and compliance.

  4. Consult a professional CA service provider for guidance.

  5. Set reminders for due dates to avoid late filings.

Conclusion

Filing TDS return on salary doesn’t have to be overwhelming. By following the steps outlined above, you can easily calculate and file your TDS returns. For businesses and individuals who need professional assistance, Taxcellent, a trusted CA service provider in Delhi, is here to help. From accurate TDS calculations to timely filing, Taxcellent ensures a hassle-free process. Contact us today to streamline your tax compliance and focus on your growth.


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Location: Delhi, India

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