If you’ve ever received a salary, commission, rent, or interest payment where tax was deducted before the money hit your account, you’ve encountered TDS—Tax Deducted at Source. But while the deduction is automatic, filing a TDS return is a responsibility that lies with the deductor.
Whether you’re a business owner, employer, or someone buying property, filing TDS returns is not optional—it’s mandatory. And missing a deadline or submitting incorrect information can cost you in penalties.
In this guide, we’ll walk you through everything about TDS returns—what they are, who should file, due dates, penalties, how to file online, and how to revise a return if needed.
What is a TDS Return?
A TDS return is a quarterly statement submitted to the Income Tax Department. It includes all details of tax deducted and deposited with the government for a given quarter.
Each return includes:
- PAN of both the deductor and deductee
- Challan details of TDS payments
- Amount of TDS deducted and deposited
These details reflect in the deductee’s Form 26AS, which is used while filing Income Tax Returns.
Who Needs to File TDS Returns?
You must file TDS returns if you:
- Deduct tax while making specified payments like salaries, rent, or contractor fees
- Are a business, company, partnership firm, HUF, individual, or government body with a valid TAN
- Have your accounts audited under Section 44AB of the Income Tax Act
Common payments that require TDS deductions include:
- Salaries
- Interest on securities
- Rent above specified limits
- Commission and brokerage
- Property purchase (above ₹50 lakh)
- Insurance commission
- Lottery winnings or horse race income
TDS Deduction Rates
TDS is not a flat rate—it varies based on the nature of payment and amount. For example:
- 1% on property transactions
- 10% on professional fees
- 30% on lottery winnings
Also, TDS is applicable only when the income exceeds the specified threshold.
Types of TDS Return Forms
Here are the main TDS forms and their specific use:
| Forms | Purpose |
|---|---|
| 24Q | TDS on Salary Payments |
| 26Q | TDS on payments other than Salary (Like professional fees or interest) |
| 26QB | TDS on Sale of Immovable Property |
| 27Q | TDS on payments to NRIs and Foreign Companies |
| 27EQ | TCS (Tax Collected at Source) Returns |
TDS Payment & Return Due Dates (FY 2025–26)
TDS returns are filed quarterly, and each quarter has a strict due date:
| Quarter | Period | Due Dates for depositing TDS | Due Date |
|---|---|---|---|
| Q1 – Ending 30th June | April | 7th May | 31st July |
| May | 7th June | ||
| June | 7th July | ||
| Q2 – Ending 30th September | July | 7th August | 31st October |
| August | 7th September | ||
| September | 7th October | ||
| Q3 – Ending 31st December | October | 7th November | 31st January |
| November | 7th December | ||
| December | 7th January | ||
| Q4 – Ending 31st March | January | 7th February | 31st May |
| February | 7th March | ||
| March | 7th April |
Interest on Late Payment of TDS
| Section | Nature of Default | Interest Rate | Duration for Interest |
|---|---|---|---|
| 201(1A)(i) | No deduction of TDS (fully or partly) | 1% per month | From the date when the tax becomes due to the date when the tax is actually deducted |
| 201(1A)(ii) | TDS deducted but not deposited to the government (fully or partly) | 1.5% per month | From the time tax is deducted to when it is deposited |
Penalties for Late or Incorrect TDS Filing
If you delay or make mistakes in your TDS filing, be prepared for penalties:
- ₹200 per day under Section 234E (until the return is filed)
- Minimum ₹10,000 (and up to ₹1,00,000) under Section 271H for non-filing within a year
- Penalties also apply for incorrect PAN, challan numbers, or other errors
💡 Note: The total penalty cannot exceed the actual TDS amount.
How to Download TDS Return Forms
Here’s how to download the appropriate TDS form:
- Visit the official NSDL TIN website
- Go to the ‘Downloads’ section
- Choose ‘e-TDS/e-TCS’
- Select ‘Quarterly Returns’
- Pick the correct form (24Q, 26Q, 27Q, etc.)
- Click ‘Download’
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How to File TDS Return Online: Step-by-Step
Here’s how to file your TDS return using the Income Tax e-filing portal:
- Go to https://incometax.gov.in
- Log in using your TAN, password, and Captcha
- Click on TDS > Upload TDS
- Choose relevant details: Form type, Financial Year, Quarter, FVU version
- Upload the ZIP file of your TDS return (validated via File Validation Utility)
- Attach your Digital Signature Certificate (DSC)
- Click ‘Upload’
🔐 You can also use EVC (Electronic Verification Code) if your PAN is linked to Aadhaar.
Things You Need Before Uploading TDS Return
Make sure you have:
- A valid TAN and registration on the e-filing portal
- The return prepared using Return Preparation Utility (RPU)
- File validated with File Validation Utility (FVU)
- Registered Digital Signature Certificate (DSC)
- PAN linked with Aadhaar (if verifying via EVC)
- Bank or Demat account details for authentication
Made a Mistake? File a Revised TDS Return
If your return has errors—like wrong PAN or challan numbers—the TDS won’t reflect in Form 26AS or Form 16. Here’s what to do:
- Make sure your original return was accepted by TIN
- Use PAN and Provisional Receipt Number to check status on NSDL
- Download the consolidated file from the TRACES portal
- Correct errors and file a revised TDS return
Timely revision ensures your deductees can correctly claim tax credits.
Final Thoughts
TDS return filing isn’t just another tax formality—it plays a crucial role in accurate tax reporting and refund processing. Whether you’re an employer deducting tax on salaries or an individual purchasing a property, knowing how and when to file your TDS returns is essential.
Stay compliant, avoid penalties, and ensure transparency in your financial records.
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