TDS return filing: forms, due dates and who must deduct TDS

If you pay salaries or certain other payments above set limits, you may have to deduct tax at source (TDS), deposit it and file a quarterly TDS return. Here is how it works.

Who has to deduct TDS?

Businesses, firms, companies and some individuals must deduct TDS when they make specified payments, such as salary, contractor and professional fees, rent, commission and interest, once the payment crosses the limit for that type of payment. To do so you need a Tax Deduction Account Number (TAN). The rates and limits depend on the section and are updated in the Finance Act, so check the current table before you deduct.

Which TDS return form should I file?

• Form 24Q: TDS on salary
• Form 26Q: TDS on payments other than salary to residents
• Form 27Q: TDS on payments to non-residents
• Form 27EQ: tax collected at source (TCS)

A return is filed every quarter for each form that applies to you.

What are the due dates?

• Depositing the tax: usually by the 7th of the month after the deduction, with a different date for March
• Filing the quarterly return: usually 31 July, 31 October, 31 January and 31 May for the four quarters of the financial year

The government can extend dates, so confirm them for the period you are filing.

What are Form 16 and Form 16A?

They are the TDS certificates you give to the person whose tax you deducted. Form 16 is for salary and Form 16A is for other payments. Employees use Form 16 to file their income tax return. See Form 16 and TDS certificates.

What happens if I deduct TDS late or file late?

Interest is charged for late deduction and for late deposit. A late fee accrues for every day a return is filed after its due date, up to the amount of TDS. If you do not deduct or deposit the tax, the expense can be disallowed for your own income tax and penalties can apply. The exact rates are in the Income-tax Act, so check the current ones.

How do I check that the deduction was credited?

Use the TDS statements and Form 26AS on the income tax portal. Mismatches between what you reported and what the person sees are the most common reason for notices and refund delays, so reconcile before filing.

Do I need help with TDS returns?

A TDS return needs correct PAN details, challan numbers and section codes. Errors lead to defaults that have to be corrected in a later filing. Our Experts prepare, file and correct TDS returns and you can track each request online. See TDS return filing.

This article is general information, not individual professional advice. Rates, limits and due dates change, so check the official income tax portal or ask our Experts before you act.