TDS Return Filing Guide: Forms 24Q, 26Q, 27Q, 27EQ

Tax Deducted at Source (TDS) is a system in which tax is collected at the point where income is generated. The person making the payment deducts tax before transferring the income and deposits it with the government. This person is known as the ‘deductor’. TDS applies to specific categories of income and must be deposited within the prescribed timelines.

Every deductor who withholds tax is required to submit a quarterly statement to the government. This statement contains details such as the amount paid, the TDS deducted, the rate applied, the relevant TDS section, and information about both the payer and receiver. These statements are commonly referred to as TDS returns.

Different forms are used depending on the nature of the payment—for example, Forms 24Q, 26Q, 26QB, 26QC, 27Q, and 27EQ. This guide outlines the applicability of these forms, the filing process, due dates, and the implications of failing to comply.

What Are TDS Forms?

• TDS forms are official statements that a tax deductor must submit to the government within the specified deadlines.
• These returns include details about the deductor and deductee, the amount of tax deducted, the applicable TDS rate, the date of deposit, and the nature of the underlying transaction.
• Each type of payment has its own corresponding TDS form.
• Most TDS forms must be filed quarterly, although some are required immediately after the transaction occurs.
• Information submitted through TDS returns is reflected in the deductee’s Form 26AS, making accuracy essential. Errors in filing can negatively impact both the deductor and the recipient of the income.

Types of TDS Return Forms

Below is an overview of various TDS return forms along with the type of transactions they apply to:

Form Type	Purpose
Form 24Q	TDS on payments made as salary
Form 26Q	TDS on payments other than salary
Form 26QB	TDS on sale of immovable property
Form 26QC	TDS on specified rent payments
Form 26QD	TDS deducted under Section 194M (works contract, commission, or professional and technical services)
Form 26QE	TDS for cryptocurrency-related transactions
Form 27Q	TDS on payments made to non-residents
Form 27EQ	TCS collected by sellers

TDS Return Due Dates & Timelines

The filing deadlines for different TDS forms are summarised below:

Form Type	Description	Frequency	Due Date
Form 24Q	TDS on salary payments	Quarterly	Apr–Jun: 31st JulyJul–Sep: 31st OctOct–Dec: 31st JanJan–Mar: 31st May
Form 26Q	TDS on payments other than salary	Quarterly	Apr–Jun: 31st JulyJul–Sep: 31st OctOct–Dec: 31st JanJan–Mar: 31st May
Form 26QB	TDS on sale of property	As transaction occurs	Within 30 days from the end of the next month
Form 26QC	TDS on specified rent payments	Monthly	Within 30 days from the end of the next month
Form 26QD	TDS under Section 194M	As payment occurs	Within 30 days from the end of the next month
Form 26QE	TDS on crypto transactions	As transaction occurs	Within 30 days from the end of the next month
Form 27Q	TDS on payments to non-residents	Quarterly	Apr–Jun: 31st JulyJul–Sep: 31st OctOct–Dec: 31st JanJan–Mar: 31st May
Form 27EQ	TCS collected from sellers	Quarterly	Apr–Jun: 31st JulyJul–Sep: 31st OctOct–Dec: 31st JanJan–Mar: 31st May

 

 

 

Penalties & Consequences of Late Filing of TDS Returns

Submitting TDS statements within the prescribed deadlines is essential because the details reported are used by both the Income Tax Department and the deductee.
The entries appearing in TDS returns are reflected in documents issued to the payee, such as Form 16, Form 16A, and Form 26AS. Any delay can cause complications for the deductee and may attract statutory penalties. Below are the consequences of filing TDS returns late or failing to file them.

Late Filing Fee – Section 234E

• As per Section 234E, a late fee of ₹200 per day is charged for each day of delay in filing TDS returns.
• The late fee cannot exceed the total TDS amount deducted for that period.

Example:
If a deductor files Form 24Q with a delay of 100 days, the fee at ₹200 per day totals ₹20,000. However, if the TDS amount for that return is ₹15,000, the late fee will be limited to ₹15,000.

Penalty for Non-Filing – Section 271H

Under Section 271H, failure to file TDS returns on time may lead to a penalty of ₹10,000 to ₹1,00,000.

However, this penalty is waived if all the following conditions are met:

• The deducted TDS has been deposited with the government.
• The TDS return is submitted within one year from the original due date.
• All applicable late filing fees and interest, if any, have been paid.

How to File TDS Returns

To file TDS returns (Form 24Q, 26Q, or 27Q), the deductor must have a valid and active TAN. The following steps outline the process for filing quarterly TDS returns through the Income Tax Portal:

Step 1: Download the relevant Return Preparation Utility (RPU) from the NSDL Protean portal.

Step 2: Fill in the required details in the utility and generate the .FYU file.

Step 3: Log in to the Income Tax e-filing portal, navigate to e-Filing > Income Tax Forms.

Step 4: Select the appropriate form, upload the FYU file, and submit by clicking ‘Proceed to e-Verify’.

 

Filing a TDS Correction Statement

If errors are discovered after filing TDS returns, a correction statement can be submitted online:

Step 1: Download and install the Return Correction Utility from the NSDL Protean portal.

Step 2: Log in to TRACES and download the consolidated TDS file.

Step 3: Import the file into the utility.

Step 4: Make necessary corrections and generate the updated FYU file.

Step 5: File the correction statement online via TRACES or offline at the nearest TIN Facilitation Center.

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Missed the Deadline?

Even if the TDS return deadline is missed, ensure that you file your ITR accurately to avoid penalties.

Procedure to File Challan Cum Statements

For one-time TDS deductions, the Challan Cum Statement facility on the Income Tax Portal can be used. No TAN is required for these filings. The steps are as follows:

Step 1: Log in to the Income Tax e-Filing portal.

Step 2: Go to E-Filing > E-Pay Tax.

Step 3: Select the relevant form – Form 26QB, 26QC, 26QD, or 26QE.

Step 4: Enter the required details in the provided fields and click Next.

Step 5: Pay the TDS and submit the statement. The portal also offers a Pay Later option.

TDS Certificates vs TDS Forms

Although the terms are often used interchangeably, TDS forms and TDS certificates serve different purposes.

TDS Forms: These are statements filed by the deductor with the government, such as Form 24Q, 26Q, 27Q, 26QE, and others. They contain details of the TDS deducted, payment made, and other relevant information.

TDS Certificates: Once the government processes the TDS forms, it generates TDS certificates and provides them to the deductors. These certificates, such as Form 16, Form 16A, are then issued to the payees as proof of tax deducted at source.