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How to file TDS return online? Here’s step-by-step process for MSME

The person or company deducting TDS needs to file for returns by the end of the month following the quarter end.

Tax deducted at source (TDS) is the income tax deducted from the payment made including salaries, professional fees, commission, rent, interest earned, etc., by a person or a company and paid to the government. Even as the recipient has to pay income tax to the government, the government provides for a tax deduction in advance from the payments the recipient receives through TDS.

For instance, a small business will deduct TDS from let’s say Rs 1 lakh rent for the premises it operates from to its owner. If the TDS is 10 per cent, the small business will deduct Rs 10,000 as TDS and pay Rs 90,000 to the owner of the premises. The TDS deducted will be paid to the government. 

The tax deductor should deposit the amount by the 7th day of the next month. For example, TDS deducted in April needs to be deposited by 7th May except for the March deduction which can be paid till April 30th. 

With respect to TDS return, the person or company deducting TDS needs to file for the same by the end of the month following the quarter end. For example, 31st July for the June quarter and 31st October for the September quarter. However, for the March quarter, the last date for TDS return is 31st May. 

To file TDS return, the deductor needs to log in to incometaxindiaefiling.gov.in with the TAN number which is registered for e-filing 
Then click e-File>Income Tax Forms>File Income Tax Forms 
Under ‘Persons with Business/Professional Income’, proceed to ‘Upload TDS Form’ and then click on ‘Let’s Get Started’ 
Select the respective TDS form filled, financial year and quarter and upload the TDS form filled and click on ‘Proceed to E-Verify’ 
Verify using the OTP shared on your mobile number 
A text message on successful completion of filing will be shared 
The TDS rate for deduction on rent in respect of any land or building is 10 per cent, 2 per cent on rent on plant and machinery, 5 per cent on commission or brokerage, 10 per cent on the fee for professional services and 2 per cent on the fee for technical services, 1 per cent on the amount paid for the sale of products or services by e-commerce platforms below Rs 5 lakh (5 per cent in cases without PAN), 0.10 per cent on payment for the purchase of goods less than Rs 50 lakh, etc. 

Importantly, TDS on payment of rent in respect of any land or building, furniture or fittings or plant and machinery is not required provided the amount paid does not exceed Rs 2.4 lakh. Likewise, TDS is exempted on salaries to individuals if net taxable income is under Rs 2.5 lakh, on commission or brokerage not exceeding Rs 15,000, on the fee for professional or technical services less than Rs 30,000, on the amount paid for the sale of products or services by e-commerce platforms below Rs 5 lakh, on payment for the purchase of goods less than Rs 50 lakh, etc.