December 14th, 2021 | Updated on June 29th, 2022
Making sure that you file tax returns for your business accurately is of paramount importance for a number of valid reasons.
From your point of view, you don’t want to incur any penalties for not providing the right information. One way to avoid that scenario when dealing with tax deducted at source and making the appropriate TDS payments.
In this article, we share certain do’s and don’ts to keep in mind for timely TDS payments.
1. Preparing Your Business Figures And Documentation
Depending on what type of business you run, it is important to make sure that you select the right ITR form for your relevant trading circumstances.
There are specific ITR forms relevant to the type of income you receive and it is essential that you establish which documents you need to submit.
After you have confirmed the correct ITR form you can proceed to fill out all of the relevant details.
Don’t submit the form until you go through the figures and check that your calculations are accurate. It always pays to take the time to go through your numbers one more time before submitting any documents or forms to the tax authorities.
2. Verify Challan Details To Ensure TDS Compliance
You want to avoid a situation where you are subjected to a short payment demand due to a challan mismatch and there is a simple way of doing this.
Go to the TRACES website and verify the challan details are correct before submitting your TDS statement. If the details are not correct you could find yourself subjected to a short payment demand as a result of a mismatch that could have been avoided.
It is your responsibility to regularly check for TDS demands and it is advisable to do so in order to be able to quickly take the right steps to rectify the situation and achieve closure of the demand.
3.Be Sure To Check TAN And AY
When you are depositing challan it is essential that you take care to double check the TAN and AY details are correct.
There are a couple of essential steps that can help you get it right each time.
These include making sure you quote the correct PAN/Aadhaar of each deductee and verifying that the CIN/BIN information is correct in your TDS statement.
Another potential error that is easily avoided with a little bit of diligence is ensuring that you enter the correct receipt number for the TDS statement filed.
4. Be Mindful Of Deadlines
Mistakes often happen when you are rushing to meet a specific deadline and if you leave your TDS deposit and file statement to the last minute it makes it more likely that you might make an error in your haste to get the information submitted on time.
A good habit to get into would be to aim for filing your TDS statement and making your deposit well before the due dates. This will ensure that you have enough time to go through the information a few times and check for errors.
Taking this proactive approach reduces the prospect of being subjected to late filing fees and receiving demands for late payment of interest.
Following these simple do’s and don’ts could make all the difference.