TDS Return Filing

TDS Return Filing in India

TDS (Tax Deducted at Source) is a system under the Income Tax Act where tax is deducted at the time of making certain payments to a person, such as salary, professional fees, rent, or contract payments.

In the TDS process:

The person making the payment (deductor) is responsible for deducting the tax before paying the recipient (deductee).
The deducted amount is then deposited with the government using an Income Tax Challan.
After depositing the TDS, the deductor must also file a TDS return within the due date.

TDS ensures that tax liability is settled in advance and helps in regular revenue flow to the governmen.

TDS Return Filing – Complete Guide

Introduction

A TDS return is a quarterly statement submitted to the Income Tax Department by the deductor to report the tax deducted at source on various payments. Filing TDS returns on time is mandatory, and failure to do so can attract penalties.

To file a TDS return, the following details are required:

PAN of both the deductor and the deductee
Amount of tax deducted and deposited with the government
TDS challan details
Any other relevant information

Types of TDS Return Forms

Form No.Particulars

Form 24QTDS from salaries

Form 26QTDS on all payments except salaries

Form 27QTDS on income such as dividends, interest, or any other payment to non-residents

Form 27EQStatement of TCS (Tax Collected at Source) – for TCS reporting, not TDS

Due Dates for TDS Payment

TDS deducted in a month must be deposited to the government on or before the 7th of the following month.
Example: TDS deducted in April must be paid by 7th May

Due Dates for TDS Return Filing

Standard Due Dates

QuarterPeriodDue Date

Q11 April – 30 June31 July

Q21 July – 30 September31 October

Q31 October – 31 December31 January

Q41 January – 31 March31 May

Furnishing PAN for TDS

The deductee must provide a valid and active PAN to the deductor.
Incorrect or missing PAN leads to a higher TDS rate of 20% and a penalty of ₹10,000.
PAN status can be checked on the Income Tax Department’s Know Your PAN service. If inactive, contact your jurisdictional Assessing Officer to update it.

TDS Certificates

The deductor must issue a TDS certificate to the deductee as proof of tax deduction.
Certificates must be downloaded from TRACES and should have a 7-digit certificate number and watermark.
Salary TDS certificates are issued annually; other TDS certificates are issued quarterly.
In case of loss, the deductee can request a duplicate from the deductor.

Claiming TDS Credit

The deductee can claim TDS credit while filing their Income Tax Return (ITR) by mentioning the correct TDS certificate number and details.
Any mismatch or incorrect detail may lead to discrepancies during ITR processing.

Prerequisites for E-Filing TDS Returns

Before uploading a TDS return, ensure you have:

Registered and valid TAN on the e-filing portal.
Return Preparation Utility (RPU) for preparing TDS statements.
File Validation Utility (FVU) for validating the prepared file.
Valid Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
Linked bank account or Demat account for authentication.

Step-by-Step Process for E-Filing TDS Returns

Register TAN on TRACES using token number and challan details from a previously filed return.
Download Utilities from the TIN-NSDL website:
- RPU (Return Preparation Utility) for preparing the return.
- FVU (File Validation Utility) for validating return data.
Download CIN File (Challan Status Inquiry) from the OLTAAS portal.
Open RPU and select the relevant form and type (Regular, Correction, etc.).
Enter all details and save the file.
Create the file and select the CSI file when prompted.
Validate the file in FVU. If errors are found, correct them and revalidate.
Convert the validated .fvu file into a ZIP file.
Log in to the Income Tax e-Filing portal with TAN credentials.
Upload the ZIP file along with the DSC/EVC.
Check status of filing on TRACES after 2–3 days.