TDS Return Filing Under explained: this guide covers what TDS Return Filing Under means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
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.