Legal Reference
Section 406 (TDS return filing — Form 24Q/26Q/27Q), ITA 2025 | Due dates: 31 July (Q1), 31 Oct (Q2), 31 Jan (Q3), 31 May (Q4) | Penalty: Rs 200/day for late filing
1. What Are TDS Returns?
Every person who deducts TDS must file quarterly TDS returns with the Income Tax Department. These returns contain details of all TDS deducted, the deductees (payees), their PAN numbers, and the amounts deposited. TDS returns enable the deductee to claim TDS credit in their ITR (the deducted amount appears in their Form 26AS only after the deductor files the TDS return).
2. Types of TDS Return Forms
| Form | Applicable To | TDS Sections Covered |
|---|
| Form 24Q | TDS on salaries | Section 391 (salary TDS) |
| Form 26Q | TDS on all non-salary payments to residents | Sections 392-404 (interest, professional, rent, contractor, etc.) |
| Form 27Q | TDS on payments to non-residents | Sections 395-396 (non-resident income) |
| Form 27EQ | TCS (Tax Collected at Source) | Sections 402-408 |
3. Quarterly Due Dates
| Quarter | Period | Form 24Q/26Q/27Q Due | Form 27EQ (TCS) Due |
|---|
| Q1 | April – June | 31 July | 15 July |
| Q2 | July – September | 31 October | 15 October |
| Q3 | October – December | 31 January | 15 January |
| Q4 | January – March | 31 May | 15 May |
4. Information Required in Form 26Q
Each TDS return entry requires:
- Deductee name and PAN
- Nature of payment (section code)
- Gross payment amount
- TDS deducted
- TDS deposited (Challan BSR code, date, amount)
- Whether lower TDS certificate was applied
- Whether PAN was not available (non-PAN deductions at 20%)
5. Penalties for Late Filing
| Default | Penalty |
|---|
| Late filing of TDS return | Rs 200 per day until filed (max = TDS amount) |
| Non-filing after notice | Rs 10,000 to Rs 1,00,000 |
| Incorrect PAN in return | Rs 10,000 per entry |
| Late issuance of Form 16/16A to deductee | Rs 100 per day per certificate (max Rs 1L) |
6. Revised TDS Return
If any error is discovered — wrong PAN, wrong amount, wrong challan details — a revised TDS return can be filed. TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal allows corrections. Common corrections include: updating PAN of deductee (from invalid PAN to correct PAN); correcting TDS amount; linking correct challan. Corrections must be made promptly as deductees cannot claim TDS credit until the return is correct.
7. Form 16 and Form 16A
After filing TDS returns, deductors must issue TDS certificates to deductees:
- Form 16: Annual salary TDS certificate (issued to employees by 15 June of assessment year)
- Form 16A: Quarterly TDS certificate for non-salary TDS (issued within 15 days of return due date)
- Certificates are generated and downloaded from the TRACES portal — not manually prepared
8. Why TaxClue
Quarterly TDS return filing requires matching every TDS deduction with the correct challan and deductee PAN. Errors cause mismatch notices. TaxClue handles Form 24Q, 26Q, and 27Q filing with complete reconciliation. Contact us for TDS return filing under ITA 2025.
Disclaimer
This article is for general informational and educational purposes only. It does not constitute legal, financial, or professional tax advice. Readers are advised to consult a qualified Chartered Accountant or tax professional before making any decisions. TaxClue Consultech Pvt Ltd accepts no liability. All case studies and examples in this article are illustrative only and do not represent actual persons or transactions.
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❓ Frequently Asked Questions
What is Form 26Q and who must file it?
Form 26Q is the quarterly TDS return for all TDS deductions on non-salary payments made to resident Indians — covering TDS on interest, professional fees, contractor payments, rent, commission, and other deductions under Chapter XIX of ITA 2025. Every deductor (company, firm, individual subject to audit) must file Form 26Q within the quarterly due dates: 31 July (Q1), 31 October (Q2), 31 January (Q3), and 31 May (Q4).
What is the difference between Form 26Q and Form 27Q?
Form 26Q covers TDS deductions on payments to resident Indians across all non-salary sections of Chapter XIX. Form 27Q covers TDS deductions on payments to non-residents and foreign companies — covering income of non-residents including interest, royalties, capital gains on Indian assets, and other income under Sections 395-396. Both are quarterly returns filed at the same due dates, but through different forms on the TRACES portal.
What is the penalty for late TDS return filing?
Under ITA 2025, late filing of TDS returns attracts a penalty of Rs 200 per day for every day of delay, subject to a maximum of the total TDS amount covered in the return. Additionally, if the return is not filed even after notice, a separate penalty of Rs 10,000 to Rs 1,00,000 can be levied. Incorrect PAN of deductees in the return attracts Rs 10,000 per entry.
How do I correct errors in a filed TDS return?
Errors in TDS returns can be corrected by filing a revised/correction return on the TRACES portal. Common corrections include updating wrong PAN to correct PAN, modifying TDS amounts, linking to correct challan, and adding missed deductee entries. Corrections must be made promptly because deductees cannot claim TDS credit in their Form 26AS until the return correctly reflects their deduction.
When must Form 16A be issued to deductees?
Form 16A (the TDS certificate for non-salary TDS) must be issued to the deductee within 15 days from the due date of the quarterly TDS return. So for Q1 (due 31 July), Form 16A must be issued by 15 August. Form 16A is generated from the TRACES portal — deductors cannot manually prepare it. The certificate shows the nature of payment, gross amount, TDS deducted, and challan details.
