TDS Return Filing — 24Q, 26Q, 27Q

Form 24Q: TDS on salaries under Section 392 of the Income Tax Act 2025. Due quarterly — Q1 (Apr-Jun) by July 31, Q2 (Jul-Sep) by October 31, Q3 (Oct-Dec) by January 31, Q4 (Jan-Mar) by May 31. Form 26Q: TDS on all non-salary payments to residents under Section 393 — rent, professional fees, contractor payments, bank interest, commission, and others. Form 27Q: TDS on payments to non-residents also under Section 393. Form 27EQ: TCS (Tax Collected at Source) under Section 394 — on sale of scrap, tendu leaves, timber, minerals, motor vehicles above 10 lakh, and LRS foreign remittances above 7 lakh.

Late filing fee under the Income Tax Act 2025: 200 per day of delay, subject to a maximum of the TDS amount for the relevant quarter. This fee runs from the day after the due date and is mandatory — it is not waivable and must be paid before the return is accepted. An additional penalty under the Income Tax Act 2025 of 10,000 to 1,00,000 can be levied if the return is not filed within 1 year of the due date, or if incorrect information is furnished. Interest on late deposit of TDS itself accrues at 1.5% per month (or part thereof) from the date of deduction to the date of actual deposit, under the interest provisions of the Income Tax Act 2025.

A short-deduction intimation issued by the Centralised Processing Cell (CPC-TDS) arises when the TDS deposited is less than the computed liability. Common causes: the deductee PAN is invalid or not linked to Aadhaar, triggering deduction at the higher rate under Section 397(2) of the Income Tax Act 2025 (formerly Section 206AA of the 1961 Act) instead of the applicable rate; wrong section code used on the challan; mismatch between challan amount and deductee-wise details in the return. Resolution: file a correction statement on TRACES, reconcile the challan with the correct deductee-wise breakup, and pay the differential tax plus interest via Challan 281 through the income tax portal.

Form 16 for salary TDS is generated exclusively through TRACES — the employer cannot self-generate it. Part A (TRACES-generated) covers tax deducted and deposited quarter-by-quarter under Section 392 and must bear a TRACES authentication number. Part B (employer-prepared) shows the salary breakup, deductions claimed, and the final tax computation. Form 16A for non-salary TDS under Section 393 is also generated only through TRACES using the deposited challan details — it must carry a unique certificate number. Deductees require Form 16 or 16A to claim TDS credit against their tax liability when filing their return under Schedule TDS1 or TDS2.

Thresholds under most provisions of Section 393 of the Income Tax Act 2025 apply to the aggregate payments in a financial year, not per transaction. Key limits (carried forward from the 1961 Act framework): interest from banks or co-ops — 50,000; other interest — 5,000; contractor payments — 30,000 per contract or 1,00,000 aggregate per year; rent of land or building — 2,40,000 per year; professional or technical fees — 30,000 per year. Once the aggregate crosses the threshold, TDS applies on the entire payment from the first rupee, not just the excess. For salary under Section 392, the threshold is the basic exemption limit applicable to the employee — TDS applies on the estimated annual salary.