Here's why you need to still file your income tax return after paying TDS

Tax deducted at source or TDS is one thing all of us have come across while filing our income tax return. Even if your employer has deducted TDS, or you have paid taxes on your own, you are still liable to file your tax return, if you fit certain criteria. Wondering why? Well, here’s the answer. TDS is the tax deducted at source and represents only a part of the income tax that you are liable to pay, if you are above the exemption limits set by the government. TDS is deducted by the employer and directly remitted to the Union government.

If your TDS has been deducted by your employer, it will show up in Form 26AS or a TDS certificate, which is needed when you are filing your income tax return. Income tax is the amount of your earnings that is liable to be taxed. Even if your tax is deducted at the source, you need to file your income tax return to show your actual tax liability.

Is there any penalty?

There is a deadline for filing TDS returns as well. Failure to adhere to the deadline could mean that the individual could lose out on claiming their TDS. They may also have to pay a penalty of up to Rs 1 lakh.

As for filing your ITR, you can still file your tax return by 31 December for the Assessment Year 2022-23. But, you will have to pay a fine of Rs 1,000 if your income is up to Rs 5 lakh. If the income is over Rs 5 lakh, taxpayers will be fined Rs 5,000. They will also need to pay interest on the delayed filing and payment of income tax.

Furthermore, if you fail to file your tax returns by 31 December this year, you will not be able to voluntarily file your tax returns for the concerned financial year. It will then be up to the Income Tax Department to notify you about what you need to do.

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