Interview Questions on TDS profile

General questions asked in interview for TDS profile in an organisation

Dear Friends,

Recently i have been given opportunity to conduct technical session during interviews of candidates for TDS related profile in my department (Direct taxation), i therefore prepared a list of Q&A series and would like to share with you as below:

Ques:  What are the different types of forms of filing TDS return?

Ans:    24Q-Salary, 27EQ-TCS, 27Q-Non resident, 26Q- Other than salary, non resident & TCS.

Ques:  Exposure about online corrections, what are the different types of corrections can be done online? How online correction of TDS return is done?

Ans:    Different types of corrections which can be done online: Pan correction, Challan correction, Addition of challan to Statement. Correction can be done online by submitting a combination of details of Original TDS return & latest revised return (details like return acknowledgement number, challan number, 3 deductee details) with use of Digital signature of Authorised signatory.

Ques:   TDS software using in current company for filing TDS return?

Ans:   Candidate who had experience on software currently using by companies are given a preference. Candidates should go through a quick tutorials of best used TDS softwares like Webtel, Genius, Computech, Taxmann etch available on internet .

Technical questions

Ques:   How to identify actual/genuine TDS defaults appearing in TRACES website?

Ans:    Justification report (JR) & Console file is downloaded from TRACES. JR states the reason of TDS demand & console file is generally the TDS data what we have filed in our TDS return. By applying checks on both two files integrity of demand can be identified.

Ques:  Exposure on non-resident payment?

Ans:   Generally Panel is not looking for exhaustive knowledge of Non resident TDS however Candidate must have basic knowledge like tds rate in case of non-resident is tax as per income tax or as per DTAA whichever beneficial however benefit under DTAA to deductee only when following documents were received from deductee:

Tax residency certificate (TRC)

            Pan card copy

            Certificate of establishment

Ques:   Employee TDS

Ans:    Quarterly TDS return is filed mentioning salary paid & TDS deducted however in quarterly statement of Q4 additional details of salary of employee for the whole year is also required to file to generate Form 16. Candidate should have knowledge on basic Income tax provision of employee TDS like exemption calculation for HRA (least of Actual HRA received, Rent paid-10% of salary or 50% (metro cities) or 40%(non metro cities) of salary), Gratuity (least of Actual gratuity received, 15 days average salary for each completed year or Rs 10 lakhs)

Ques:   Current organization workflows of TDS calculation & TDS return?

Ans:    Candidates should prepare the current workflow for preparation of data in their current organisation for payment of TDS & TDS return filing in a narrative form & practice it to make it understand clearly to panel members without missing any important activity.

Hope questions shared above will help you in interview. Please share your experience.

Best of Luck