TDS Return Filing — 24Q, 26Q, 27Q, 27EQ

Every person who deducts Tax Deducted at Source (TDS) under Chapter XVII-B of the Income Tax Act, 1961 is required to file quarterly TDS returns under Section 200. This includes: companies (TDS on salaries, contractor payments, rent, professional fees), individuals and HUFs with business turnover above the audit threshold, employers paying salaries, buyers of immovable property above ₹50 lakh (Section 194-IA), and any person making payments attracting TDS under Sections 192 through 194S. All deductors must have a valid TAN (Tax Deduction and Collection Account Number) under Section 203A.

TDS returns are filed quarterly. The due dates are: Q1 (April–June): 31 July; Q2 (July–September): 31 October; Q3 (October–December): 31 January; Q4 (January–March): 31 May. These due dates apply to all TDS forms — 24Q (salary), 26Q (non-salary payments to residents), 27Q (non-resident payments), and 27EQ (TCS). Note: Q4 has a later due date (31 May vs 31 January for Q3) to allow time to issue Form 16 and 16A by 15 June.

Late filing of TDS returns attracts a fee of ₹200 per day for each day of default under Section 234E of the Income Tax Act, 1961. This fee is mandatory and cannot be waived — it is levied from the day after the due date until the date of filing. The maximum fee is capped at the TDS amount for that quarter. Additionally, under Section 271H, the Assessing Officer may levy a penalty of ₹10,000 to ₹1,00,000 for non-filing or incorrect filing if not rectified within one year of the due date.

Form 24Q: TDS on salary payments under Section 192. Filed by employers for TDS deducted from employees. Form 26Q: TDS on all non-salary payments to resident payees — contractor fees (§194C), professional fees (§194J), rent (§194I), interest (§194A), commission (§194H), etc. Form 27Q: TDS on payments to non-residents and foreign companies — includes interest, dividends, royalties, and other specified payments under Sections 195, 196A, 196B, 196C, 196D. Form 27EQ: Tax Collected at Source (TCS) under Section 206C — for sellers collecting TCS on sale of goods like timber, scrap, minerals, tendu leaves, alcohol.

Form 16 is the TDS certificate issued by employers to employees under Section 203. It contains salary details and TDS deducted. Form 16 must be issued by 15 June following the end of the financial year (e.g., Form 16 for FY 2025-26 must be issued by 15 June 2026). Form 16A is the TDS certificate for non-salary deductions (e.g., professional fees, rent, interest). It must be issued within 15 days of the due date of filing the quarterly TDS return — i.e., by 15 August, 15 November, 15 February, and 15 June respectively. Failure to issue Form 16/16A is a separate offence under Section 272A(2)(g).

Tax Deduction and Collection Account Number (TAN) is a 10-digit alphanumeric number allotted by the Income Tax Department under Section 203A of the Income Tax Act, 1961. TAN is mandatory for every person required to deduct or collect tax at source. TDS returns cannot be filed without a valid TAN. TAN is applied for using Form 49B on the TIN-NSDL portal. A deductor who fails to obtain TAN or quotes incorrect TAN faces a penalty of ₹10,000 under Section 272BB.

Yes. TDS returns can be revised any number of times using the TRACES portal (TDS Reconciliation Analysis and Correction Enabling System). Revisions are typically needed to correct PAN details of deductees, challan amounts, nature of payment codes, or to add omitted deductees. Revised returns replace the original filing. It is important to correct errors promptly — incorrect PAN details can cause a 20% TDS mismatch (Section 206AA), and missing challan details trigger demand notices from the CPC-TDS.

Under Section 194J of the Income Tax Act, 1961, TDS on professional or technical fees is as follows: 10% for fees for professional services (doctors, lawyers, CAs, architects, consultants); 2% for technical services (after Finance Act 2020 amendment effective 1 April 2020); 2% for payments to call centre operators; 10% for royalty payable to resident; 10% for non-compete fees. The threshold for deduction is ₹30,000 per annum per payee. If the deductee does not furnish their PAN, TDS must be deducted at 20% under Section 206AA.

If TDS is deducted but not deposited to the government within the prescribed time, interest is levied under Section 201(1A) at 1.5% per month (or part thereof) from the date of deduction to the date of payment. For TDS not deducted at all, interest under Section 201(1A) is 1% per month from the date of payment to the deductee to the date of actual deduction. Additionally, the deductor is treated as an "assessee in default" under Section 201(1) and can be held personally liable for the TDS amount. This is separate from the Section 234E late filing fee.

TDS return filing fees depend on the number of deductee entries and the form type. HRA charges: ₹1,999 per quarter for up to 20 deductee entries (Form 26Q), ₹2,499 per quarter for 20–100 entries, ₹3,999 per quarter for 100–500 entries, and custom pricing for larger deductor companies. Form 24Q (salary TDS) is priced based on number of employees: ₹1,999 for up to 10 employees, ₹2,999 for 10–50 employees. Annual packages (all 4 quarters) are available at 15% discount. All plans include TRACES reconciliation, Form 16/16A generation, and advance-notice for due dates.