Filing TDS Return Filing in Delhi is a very important compliance requirement for all businesses and individuals who deduct tax at source. However, most taxpayers commit errors that result in penalties, interest charges, and unnecessary complications. It is thus essential to be aware of common mistakes and how to avoid them for a smooth and hassle-free process.
1. Incorrect PAN or TAN Details
One of the most common mistakes while filing TDS Returns in Delhi is that people get their PAN (Permanent Account Number) or TAN (Tax Deduction and Collection Account Number) details wrong. Inaccurate details lead to rejection of the return or penalties on return. Always check the PAN and TAN details of deductor and deductee before filing.
2. Non-Filing or Delayed Filing of TDS Returns
Many businesses miss the deadline for TDS Return Filing in Delhi, which incurs penalties and interest. Quarterly TDS returns have fixed due dates, and any delay incurs a late fee of Rs. 200 per day under Section 234E. One should keep track of due dates and file returns on time.
3. Wrong Challan Details
Any filing of the TDS return with incorrect challan details such as wrong assessment year, incorrect BSR (Basic Statistical Return) code or even challan number will bring a reconciliation problem at the Income Tax Department’s side. Make sure to verify all the challan details before returning.
4. Delay in TDS Payment
Deductors must deposit TDS within the prescribed time limit. Any delay results in interest under Section 201(1A). In Delhi, businesses often struggle with last-minute deposits, causing unnecessary fines. It’s best to deposit TDS well before the due date.
5. Mismatch in TDS Amount
Another common error is a discrepancy between the TDS deducted and the amount reflected in the return. The Income Tax Department cross-verifies all the details from Form 26AS, and any discrepancy would lead to notices or rejections. So ensure that the deducted TDS tally with the amount reported.
6. Not Cross-Verifying the Return Before Filing
Many businesses forget to verify their TDS Return Filing in Delhi after submission. The return must be verified using a digital signature or Aadhaar OTP. An unverified return is considered invalid, leading to non-compliance.
7. Incorrect Deduction Rates
Wrong application of TDS deduction rate may lead to short deductions or excess deductions. It is essential to refer to the latest TDS rate chart and ensure the correct percentage is applied based on the nature of payment.
8. Non-Filing of NIL Returns
Even if no TDS is deducted during a quarter, a NIL return must be filed. Many businesses assume that they can skip filing in such cases, but non-filing may still attract penalties or compliance issues.
9. Ignoring Form 16 and Form 16A Issuance
Deductor is supposed to issue Form 16 in case of employment and Form 16A in case of other income received by an individual, to the deductee. Delay in issuance of these forms creates havoc for both parties while filing the tax.
10. Not Reconciling with Form 26AS
Form 26AS is a consolidated tax statement showing TDS deductions. Any mismatch between the details in the TDS return and Form 26AS can lead to discrepancies in the taxpayer’s records. It’s essential to cross-check and rectify errors before filing.
Conclusion
Common mistakes to avoid for TDS Return Filing in Delhi: Avoid such common mistakes, and TDS Return Filing in Delhi becomes smoother. By filing in time, providing accurate details, and proper reconciliation, businesses will stay compliant and avoid unnecessary penalties. If you have no idea about the process, seek professional advice to navigate the complexities of TDS return filing hassle free.