TDS Returns

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TDS Returns

What is TDS Return Filing?

TDS return filing is the process of submitting periodic statements to the Income Tax Department showing the tax deducted at source from payments such as salaries, contract payments, rent, interest, or professional fees.

It ensures compliance with the Income Tax Act and enables the deductee to claim TDS credit in their Income Tax Return.

TDS Returns

Who Needs to File TDS Returns?

Filing frequency depends on the TDS type and category of deductor.

Employers deducting TDS on salaries.

Businesses deducting TDS on contractor fees, rent, professional fees, etc.

Banks deducting TDS on interest or deposits.

Types of TDS Returns

  • Form 24Q: TDS on salary payments.
  • Form 26Q: TDS on non-salary payments (contractors, rent, professional fees).
  • Form 27Q: TDS on payments to non-resident Indians or foreign entities.
  • Form 27EQ: TCS (Tax Collected at Source) returns.

Documents Required

  • TAN (Tax Deduction and Collection Account Number) of deductor
  • PAN of deductor and deductee
  • Details of TDS deducted and deposited
  • Salary or payment records
  • Form 16 / Form 16A (TDS certificate)

Steps to File TDS Returns

1

Deduct TDS

Deduct the applicable TDS at the prescribed rate from payments.

2

Deposit TDS

Pay the deducted amount to the Government Treasury using Challan 281.

3

Prepare TDS Statement

Prepare the statement in TDS return forms (24Q, 26Q, 27Q).

4

File Online

Submit the statement electronically on the TIN NSDL portal.

5

Issue TDS Certificates

  • Form 16 for salary payments
  • Form 16A for non-salary payments

Due Dates for TDS/TCS Return Filing

Form Quarter Period Due Date
24Q, 26Q, 27Q Quarter 1 Apr - Jun 31st July
24Q, 26Q, 27Q Quarter 2 Jul - Sep 31st October
24Q, 26Q, 27Q Quarter 3 Oct - Dec 31st January
24Q, 26Q, 27Q Quarter 4 Jan - Mar 31st May
27EQ (TCS) Quarterly 15th of the month after the quarter

Benefits of TDS Return Filing

Legal Compliance

Ensures compliance with the Income Tax Act.

Claim TDS Credit

Helps the deductee claim TDS credit in their ITR.

Avoid Penalties

Avoids penalties, interest, and notices from the IT Department.

Transparency

Maintains financial transparency for businesses and authorities.

Easy Auditing

Simplifies year-end reconciliation and auditing.