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Quick Summary:

To file a TDS (Tax Deducted at Source) return, visit the TDS Reconciliation Analysis and Correction Enabling System (TRACES) or NSDL website. Choose the relevant TDS return form (like 24Q for salary or 26Q for other payments). Fill in details such as deductor and deductee information, and submit the return along with any required payment. After submission, download the acknowledgment receipt and ensure timely filing to avoid penalties.

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How to File a TDS Return: A Step-by-Step Guide

Learn how to file a TDS (Tax Deducted at Source) return with our step-by-step guide. A TDS return is a statement detailing tax deducted at source by the deductor during a specific period, including information on the deductor’s and deductee’s PAN, the amount of TDS deducted, the nature of payment, and other relevant details.

Page last updated

5 May 2024

written By

Afinthrive Advisory

How to File a TDS Return: A Step-by-Step Guide

Pre-requisites of TDS Return Filing

The first requirement for filing a TDS Return is to obtain a valid TAN (Tax Deduction Account Number) and PAN (Permanent Account Number). You need to assess if you are required to deduct TDS on specific payments.

Accurate transaction and payment details are also necessary.

Typically, all types of payments such as salaries, interest, professional fees, payments to contractors, rent of machinery, rent of buildings, etc., are covered under liable payments.

There are prescribed rates for each type of TDS payment under the Income Tax Act, 1961.

TDS Rate Chart for FY 2023-24

If you are a deductor and have made payments to resident Indians, you should file Form 24Q (TDS on salary payments) and Form 26Q (TDS on payments other than salaries) on a quarterly basis. For payments made to non-residents, you are required to file Form 27Q quarterly. Form 16A and Form 16 (TDS Certificates) can only be generated after correct and timely filing of TDS Returns.

Key Points About TDS

  • Who needs to file TDS Return: Any person or entity who deducts tax at source under the Income Tax Act, 1961 — including employers, banks, contractors, and professionals — must file TDS returns.
  • Types of TDS Returns: Different TDS returns are prescribed based on the nature of the payment, such as Form 24Q for salary, Form 26Q for non-salary, Form 27Q for non-residents, and Form 27EQ for TCS (Tax Collected at Source).
  • Frequency of Filing: TDS returns are typically filed quarterly, depending on the type of deduction and nature of the deductor.
  • Components of TDS Return: Returns must include details of TDS deducted and deposited, challan details, PAN of both deductor and deductee, and other required information.
  • Filing Process: TDS returns must be filed electronically through the Income Tax Department’s e-filing portal (https://www.incometaxindiaefiling.gov.in/). Deductors must register on the portal, prepare returns offline, and upload them online.
  • Due Dates: Each quarter has its own filing deadline. For example, the return for April–June is typically due by July 31st.
  • Late Filing Penalty: A delay in filing attracts a penalty of Rs. 200 per day, subject to the amount of TDS.
  • Revision of TDS Return: TDS returns can be revised to correct errors, but there are restrictions on how often revisions can be made.
  • TDS Certificates: After filing returns, deductors must issue TDS certificates (Form 16/16A/16B/16C) to deductees as proof of tax deducted and deposited.
  • Audit and Assessment: The Income Tax Department may audit or assess the accuracy and completeness of the filed TDS returns.
  • Penalties for Non-Compliance: Failing to comply with TDS rules may result in penalties, interest, and other legal consequences under the Income Tax Act.
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Essential

₹1299

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₹

999

Plan inclusive of all charges

KEY FEATURES

  • One TDS Return upto 20 entries

Enhanced

₹6499

(8%)

₹

5999

Plan inclusive of all charges

KEY FEATURES

  • TDS Returns for 1st Quarter
  • TDS Returns for 2nd Quarter
  • TDS Returns for 3rd Quarter
  • TDS Returns for 4th Quarter
  • Form 24Q, 26Q and 27Q (as applicable) upto 500 entries for 1 Year
  • Form 16A on a quarterly basis
  • Form 16 on an annual basis for upto 5 employees

Ultimate

₹10099

(11%)

₹

8999

Plan inclusive of all charges

KEY FEATURES

  • TDS Returns for 1st Quarter
  • TDS Returns for 2nd Quarter
  • TDS Returns for 3rd Quarter
  • TDS Returns for 4th Quarter
  • Form 24Q, 26Q and 27Q (as applicable) upto 1000 entries for 1 Year
  • Form 16A on a quarterly basis
  • Form 16 on an annual basis for upto 10 employees

Points to make your decision easy

TDS Returns filing-Mandatory norms

1

Quarterly Returns

Due dates of quarterly TDS return filing are as follows (Due Dates for all quarters extended till 31.03.2021): - April-June – 31st July - July-September – 31st October - October-December – 31st January - January-March – 31st May

2

Return Forms

Form 26Q is the TDS return form for Non-Salary TDS. Form 24Q is used to provide details of Salary TDS, while Form 27Q is used for details of Non-resident payments.

3

Late Filing

Late filing of TDS Return attracts late fees of Rs. 200/- per day of default. It is advisable to file returns on time to avoid these mandatory late fees.

Documents Required
Documents Required

Here is the check list of documents required.

  • Your TAN
  • Challans of TDS payment
  • Details of deduction
Documents Required
FAQs

Get Answers to your most asked questions.

Who is required to file TDS Returns?

Any person or entity who is responsible for deducting tax at source as per the provisions of the Income Tax Act, 1961 is required to file TDS returns. This includes employers, banks, contractors, professionals, etc.

What is the Frequency of TDS Return Filing?

TDS returns are generally required to be filed quarterly. However, for government deductors, TDS on non-salary payments is required to be filed monthly.

What are the Different Types of TDS Returns?

There are different types of TDS returns prescribed under the Income Tax Act, such as Form 24Q for salary payments, Form 26Q for non-salary payments, Form 27Q for TDS on payments to non-residents, and Form 27EQ for TDS on payments other than salaries.

What are the Due Dates for Filing TDS Returns?

The due dates for filing TDS returns vary depending on the quarter to which they relate. Generally, TDS returns for a particular quarter are due by the 31st of the month following the end of the quarter.

Is it Mandatory to File TDS Returns Online?

Yes, it is mandatory to file TDS returns online through the Income Tax Department’s e-filing portal (https://www.incometaxindiaefiling.gov.in/). Manual filing of TDS returns is not allowed.

What are the Consequences of Late Filing of TDS Returns?

Late filing of TDS returns attracts penalties and late fees. The penalty for late filing of TDS returns is Rs. 200 per day of delay, subject to a maximum of the TDS amount.

Can TDS Returns be Revised?

Yes, TDS returns can be revised if there are any errors or omissions in the original return filed. However, there are limitations on the number of times a return can be revised.

Is it Mandatory to Issue TDS Certificates to Deductees?

Yes, it is mandatory for deductors to issue TDS certificates (Form 16/16A/16B/16C) to the deductees, providing details of tax deducted and deposited.

Are TDS Returns Subject to Audit and Assessment?

Yes, the Income Tax Department may conduct audits or assessments to verify the accuracy and completeness of TDS returns filed by deductors.

What are the Penalties for Non-Compliance with TDS Return Filing Requirements?

Non-compliance with TDS return filing requirements may lead to penalties, fines, interest, and other legal consequences as per the provisions of the Income Tax Act.