TDS Return Filing Assistance

Who is required to deduct TDS and file TDS returns?

TDS must be deducted by: (a) All companies and firms — mandatory for all payments above threshold; (b) Individuals and HUFs whose accounts are audited under Section 44AB (previous year); (c) Government departments; (d) Banks for interest payments above ₹40,000 (₹50,000 for senior citizens). Once TDS is deducted, the deductor must deposit it to the government within the due date and file quarterly TDS returns.

What is the due date for quarterly TDS return filing?

Q1 (April–June): 31 July; Q2 (July–September): 31 October; Q3 (October–December): 31 January; Q4 (January–March): 31 May. These are the due dates for Form 24Q and 26Q. Note: TDS must be deposited to the government by the 7th of the following month (30 April for March salary TDS). The quarterly return consolidates all monthly deposits.

What is the penalty for late filing of TDS returns?

Late fee under Section 234E: ₹200 per day for each day of delay (per return), up to the total TDS amount. Example: A return with ₹50,000 TDS filed 10 days late: late fee = ₹200 × 10 = ₹2,000. This is not a penalty but a statutory fee payable before the return can be filed. Additionally, Section 271H penalty of ₹10,000 to ₹1,00,000 can be levied for very late filing (beyond 1 year) or incorrect returns.

What is the difference between Form 24Q and Form 26Q?

Form 24Q is the TDS return for salary payments — filed quarterly by employers deducting TDS under Section 192. It includes salary details, deductions allowed, and TDS computation for each employee. Form 26Q is for non-salary payments — covers TDS deducted under Sections 194C (contractor), 194J (professional fees), 194A (interest), 194H (commission), 194I (rent), and many others. Both forms must be filed quarterly even if no TDS was deducted (NIL return filing exemption available in some cases).

When must TDS be deposited to the government?

For government deductors: same day as TDS deduction (no challan needed for Book Adjustment). For other deductors: by 7th of the month following deduction (except March TDS, which is due by 30 April). Penalty for late deposit: interest at 1.5% per month (from deduction date to deposit date). Late deposit is both an interest liability and a disallowance in your income tax computation under Section 40(a)(ia).

What is Form 16 and how is it different from Form 16A?

Form 16 is the TDS certificate for salary income — issued by employers to employees by 15 June. It has Part A (TDS details auto-generated from TRACES based on 24Q data) and Part B (salary breakup, exemptions, deductions). Form 16A is the TDS certificate for non-salary income (rent, professional fees, contractor payments, etc.) — issued by deductors to deductees quarterly. Both are generated from TRACES portal based on filed TDS returns — making timely and accurate TDS return filing essential for recipients to get correct certificates.

What if an employee does not have PAN — what TDS rate applies?

If a deductee (employee or payee) does not provide their PAN, TDS must be deducted at the higher of: (a) prescribed TDS rate, or (b) 20%. For salary payments under Section 192, if employee has no PAN, TDS is deducted at slab rates applicable to the maximum marginal rate. From FY 2023-24, linking PAN with Aadhaar is mandatory — unlinked PANs are treated as invalid, and TDS at higher rates applies.

How are TDS returns corrected if filed with errors?

Correction returns can be filed on TRACES portal: C1 correction (deductor details), C2 (challan details), C3 (deductee details), C4 (delete deductee record), C5 (PAN correction). For major corrections (PAN changes, challan realignment), a complete correction return (C9) may be needed. Our team handles all correction types — errors in PAN cause wrong Form 26AS reflection for deductees, leading to their tax notices.