Every entity that deducts Tax at Source (TDS) must file quarterly TDS returns with the Income Tax Department. Employers, businesses making payments to contractors, professionals, and others are all deductors. Missing a TDS return deadline attracts significant penalties.
Types of TDS Return Forms
| Form | For | Who Files |
|---|
| Form 24Q | TDS on salary (Section 192) | Employers |
| Form 26Q | TDS on non-salary payments to residents | Businesses/individuals |
| Form 27Q | TDS on payments to non-residents (NRIs) | Deductors paying NRIs |
| Form 27EQ | TCS (Tax Collected at Source) | Sellers collecting TCS |
TDS Return Due Dates (FY 2025-26)
| Quarter | Period | Due Date |
|---|
| Q1 | April – June 2025 | 31st July 2025 |
| Q2 | July – September 2025 | 31st October 2025 |
| Q3 | October – December 2025 | 31st January 2026 |
| Q4 | January – March 2026 | 31st May 2026 |
Penalty for Late TDS Return Filing
- Section 234E: ₹200 per day per return from the due date (subject to maximum of TDS deducted amount) — this is mandatory late fee charged automatically
- Section 271H: Penalty of ₹10,000 to ₹1,00,000 for non-filing (or filing with incorrect information) — at discretion of AO
- Interest under Section 201: 1.5% per month on TDS deducted but not deposited; 1% per month on TDS not deducted
- Prosecution under Section 276B for wilful default — up to 7 years imprisonment
Form 16 and Form 16A Issuance Deadline
| Certificate | For | Issuance Deadline |
|---|
| Form 16 (Part A + B) | TDS on salary (24Q, Q4) | 15th June (within 15 days of Q4 TDS return due date) |
| Form 16A | TDS on non-salary payments (26Q) | 15th after end of each quarter |
| Form 16B | TDS on property purchase (194IA) | 15 days from due date of challan |
How to File TDS Returns
- Download TRACES software (RPU — Return Preparation Utility) from NSDL
- Prepare the .fvu (File Validation Utility) file with deductee details and amounts
- Validate using FVU and generate the .fvu output file
- Upload to TRACES/income tax portal using DSC (Digital Signature Certificate) or EVC
- Download acknowledgement (M-number) after successful upload
Note: For most businesses, TDS return filing is outsourced to a CA or tax consultant. Indus Tax handles quarterly TDS return filing for individuals, businesses, and employers — including Form 16 generation and TRACES compliance.
