TDS Return Filing

TDS (Tax Deducted at Source) return filing is the mandatory quarterly statement that every deductor holding a valid TAN submits, reporting the tax deducted on payments such as salary, rent, professional fees, contractor payments, interest and commission. Under the Income Tax Act, 2025 (effective 1 April 2026), the quarterly forms have been renumbered. Filing on time keeps the deductees’ tax credit accurate and avoids late fees and interest.

Any person or entity making specified payments above the prescribed thresholds must deduct TDS and file returns — employers (on salary), businesses and companies (on rent, professional fees, contractor payments, interest, commission), and anyone paying non-residents/foreign companies (royalty, fees for technical services, interest). Even a small business with a single employee or contractor payment must obtain a TAN and file quarterly returns — non-compliance attracts penalties regardless of size.

From 1 April 2026 the quarterly forms are renumbered: Form 138 (salary, was 24Q), Form 140 (non-salary resident, was 26Q), Form 144 (non-resident payments, was 27Q) and Form 143 (TCS, was 27EQ). Transitional note: Q4 of FY 2025-26 (Jan–Mar 2026) must still be filed using the old forms (24Q/26Q/27Q) even if filed after 1 April 2026; the new forms apply from Q1 of Tax Year 2026-27 onward. We file correctly under both frameworks.

TDS returns are filed quarterly: Q1 (Apr–Jun) by 31 July, Q2 (Jul–Sep) by 31 October, Q3 (Oct–Dec) by 31 January, and Q4 (Jan–Mar) by 31 May. These return due dates are separate from the monthly TDS deposit obligation. We track every quarter so filings and deposits are never missed.

TDS deducted must be deposited by the 7th of the following month for April through February deductions, and by 30 April for tax deducted in March. The deposit (via challan) is a monthly obligation that runs alongside the quarterly return filing — you must both deposit monthly and file the quarterly return by its due date. Late deposit attracts interest (see the penalty FAQ).

Late filing of a TDS return attracts a mandatory late fee of ₹200 per day of delay, capped at the total TDS amount of that return. This fee cannot be waived and must be paid before the return can be uploaded. Filing on time is the only way to avoid it — we set proactive reminders before each quarterly deadline.

Interest: 1% per month for late deduction (from the date TDS was due to be deducted to the date deducted) and 1.5% per month for late deposit (from deduction to deposit). Penalty: for failure to file the return, a penalty ranging from ₹10,000 to ₹1,00,000 may apply if the delay extends beyond the prescribed period. Incorrect returns also disrupt the deductee’s annual statement (Form 168, formerly 26AS). We reconcile challans and PANs to keep returns error-free.

Yes — a TAN (Tax Deduction and Collection Account Number) is mandatory before you can deduct TDS or file any TDS return, and it must be quoted on all returns, challans and certificates. If you don’t have one, we can arrange your TAN first. If you also make payments to non-residents, you may additionally need Form 15CA/15CB (145/146) for foreign-remittance compliance.

After a TDS return is processed, the deductor issues TDS certificates to deductees: Form 130 (salary certificate, formerly Form 16) and Form 131 (non-salary certificate, formerly Form 16A), downloaded from TRACES. These let employees and vendors claim their tax credit when filing returns. The credits also reflect in each deductee’s Form 168 (Annual Information Statement, formerly Form 26AS). We generate and share certificates within the prescribed timelines.

Yes — if an error is found after filing (wrong PAN, challan mismatch, incorrect amount), a correction (revised) return can be filed to fix it; there is no “revision” limit as such, but corrections should be made promptly so the deductee’s credit is accurate. Separately, a deductee can obtain a lower or nil deduction certificate from the Assessing Officer so the deductor applies a reduced rate. We handle both correction returns and advisory on lower-deduction certificates.