Preparing TDS Returns is a simple and usually do not require any external help. Follow the simple rules which will ensure correct filing of TDS Returns. It would ensure smooth passing on the tax credit to relevant employees and vendors. Take all necessary precautions to avoid errors to avoid that subsequent process of error corrections.
Some of these precautions are summarized below:
§ Apply correct percentage while deducting tax (TDS) for vendors. For employees, deduct the tax proportionately each month based on the annual projection.
§ Make sure TDS amount is deposited on time. However, for delays, the correct interest for the delay should also be deposited.
§ The PAN of employees & vendors should be properly verified and ensured that it is correct.
§ For Lower or Nil Deductions, the eligibility should be checked and verified.
§ It is important to keep a close check to ensure that TDS is made applicable once the threshold limit is crossed during the course of the financial year for any vendor.
§ TAN (Tax Account Numbers) – should be correct
§ Each details in the TDS Challan should be properly checked / verified
§ The Section for Deduction should be correct
§ Check for short deductions and / or late deductions and make sure the correctly calculated interest is duly paid
§ File TDS Returns on time. In case of any delay, calculate and pay the late fee before filing
One needs to use a simple and reputed software for taking care of preparing and filing TDS Returns. Among quite a few, we recommend TDSMAN, which is a renowned software and is being used across the country.