TDS Return Filing — Forms 24Q, 26Q, 27Q and 27EQ Explained

If your business deducts TDS (Tax Deducted at Source) from payments made to employees, contractors, vendors or others, you must file quarterly TDS returns with the Income Tax department. Filing these returns correctly and on time is critical — errors cause problems for your payees, and late filing attracts significant penalties. Here is the complete guide.

TDS Return Forms — Which One to File?

Form 24Q: For TDS deducted on salary payments to employees under Section 192. Filed quarterly by employers. Contains details of all employees, their salary, deductions claimed, and TDS deducted for the quarter.

Form 26Q: For TDS deducted on all non-salary payments to resident Indians — including professional fees (Section 194J), interest (Section 194A), rent (Section 194I), contractor payments (Section 194C) and many others. This is the most commonly filed TDS return for businesses.

Form 27Q: For TDS deducted on payments to non-residents (other than salary) under Chapter XVII-B — interest, royalties, technical service fees, etc. If your business pays a foreign vendor or non-resident consultant, 27Q is required.

Form 27EQ: For TCS (Tax Collected at Source) — filed by sellers who collect TCS on sale of certain goods like scrap, timber, tendu leaves, foreign remittances, etc.

Quarterly Due Dates for TDS Returns

• Q1 (April – June): Due by 31 July
• Q2 (July – September): Due by 31 October
• Q3 (October – December): Due by 31 January
• Q4 (January – March): Due by 31 May (for 24Q — salary) and 31 May (for 26Q)

Late Filing Fee — Section 234E

A late filing fee of ₹200 per day is levied under Section 234E for each day of delay in filing TDS returns. This fee is mandatory and cannot be waived — it is paid as part of the challan at the time of filing. Additionally, a penalty of ₹10,000 to ₹1 lakh under Section 271H applies for very late filing (beyond 1 year) or incorrect filing.

How to File TDS Returns on TRACES

Step 1 — Prepare the return: Use NSDL's RPU (Return Preparation Utility) software to prepare the TDS return. Enter deductee details, challan details, payment amounts and TDS deducted for each transaction.

Step 2 — Validate and FVU: Run the file through the FVU (File Validation Utility) to check for errors. The FVU generates an error-free .fvu file.

Step 3 — Upload on TRACES: Log in to the TRACES portal (tdscpc.gov.in) with your TAN and upload the .fvu file.

Step 4 — Pay any arrears: If TDS was deducted but not yet deposited, pay it via Challan 281 before uploading the return.

TDS Certificate — Form 16 and 16A

After filing TDS returns, you must issue TDS certificates to deductees. Form 16 (for salary TDS) must be issued by 15 June every year. Form 16A (for non-salary TDS) must be issued within 15 days of the due date of each quarterly return. Form 16A is downloaded from TRACES after the return is processed.

Conclusion

TDS return filing is a non-negotiable quarterly compliance for any business that deducts TDS. SPOTON's TDS team handles preparation, filing and certificate issuance for all types of TDS returns — 24Q, 26Q, 27Q and 27EQ — for businesses across Kerala. Contact us for reliable TDS compliance services.