TDS (Tax Deducted at Source) is a mechanism by which tax is collected at the source of income generation. Businesses and certain individuals are required to deduct TDS and file quarterly returns to the Income Tax Department.
Any deductor (individual, company, LLP, firm, etc.) who has deducted TDS while making payments such as:
Salary
Contractor/Sub-contractor payments
Rent
Professional fees
Commission, interest, etc.
| Form | Purpose | Applicable For |
|---|---|---|
| 24Q | TDS on salary payments | Employers deducting TDS on salaries |
| 26Q | TDS on all non-salary payments (contractors, rent, etc.) | Residents (except salary) |
| 27Q | TDS on payments to non-residents | Foreign payments |
| 27EQ | TCS return (Tax Collected at Source) | Sellers collecting TCS |
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | April โ June | 31st July |
| Q2 | July โ September | 31st October |
| Q3 | October โ December | 31st January |
| Q4 | January โ March | 31st May |
TAN & PAN of deductor
PAN of deductees
Details of TDS deducted (challans, date, amount)
Nature of payment
Salary details (in case of Form 24Q)
Challan Identification Number (CIN)
Collect data and verify TDS deductions.
Prepare return using TDS utility (RPU) from NSDL or third-party software.
Validate file using File Validation Utility (FVU).
Upload return on the TIN-NSDL portal or Income Tax e-Filing portal.
Download TDS Acknowledgment (Provisional Receipt).
โน200 per day under Section 234E until the return is filed.
Maximum penalty: Equal to the TDS amount.
Section 271H penalty: โน10,000 to โน1,00,000 for incorrect or non-filing.
TDS deducted must be deposited by the 7th of the next month.
Form 16/16A (TDS certificate) must be issued to deductees on time.
Ensure PAN of deductees is quoted to avoid higher TDS rates.
