TDS Return Filing Services — Quarterly Compliance for All TDS Deductors
Form 24Q, 26Q, 27Q and 27EQ prepared in RPU, validated through FVU and filed on TRACES — with Form 16 and 16A delivered to your deductees
TDS Return Filing — The Quarterly Obligation
Tax Deducted at Source (TDS) is one of India's most pervasive tax collection mechanisms — a pre-emptive withholding of income tax by the payer at the time of making specified payments, remitted to the government on behalf of the recipient. Every entity required to deduct TDS — businesses, individuals above prescribed turnover, employers, banks, and specified government bodies — must file quarterly TDS returns on the TRACES (TDS Reconciliation Analysis and Correction Enabling System) and TIN (Tax Information Network) portal. Failure to file TDS returns on time, or filing with errors, attracts late fees under Section 234E, penalties under Section 271H, and interest under Section 201(1A).
At N D Savla & Associates, our tax compliance team in Mumbai provides comprehensive TDS return filing services for businesses, employers, and individuals who are required to deduct TDS: Form 24Q (TDS on salary), Form 26Q (TDS on non-salary payments to residents), Form 27Q (TDS on payments to non-residents), and Form 27EQ (TCS — Tax Collected at Source). We extract payment data from your books, compute TDS at applicable rates, prepare the return in the prescribed RPU format, validate against the FVU (File Validation Utility), and file on the portal within the quarterly deadline.
TDS return compliance is a significant operational burden for businesses with large payment volumes — salaries, contractor payments, professional fees, rent, interest, and other specified payments each have their own TDS rate, exemption threshold, Section reference, and deductee category. Our team manages the complexity so your TDS compliance is accurate, timely, and penalty-free.
TDS Return Forms: Which Form for Which Payment?
Form 24Q — TDS on Salary Payments
Filed by every employer deducting TDS on salary under Section 192. The return requires employee-wise details: PAN, name, salary components, Section 10 exemptions such as HRA and LTA, standard deduction, Chapter VI-A deductions, net taxable salary, and TDS deducted each quarter. For Q4, Form 24Q includes annual salary details in Annexure II — which generates Form 16 for each employee.
Form 26Q — Non-Salary Payments to Residents
Covers TDS on all non-salary payments to residents: contractor payments (194C), professional fees (194J), rent (194I), interest (194A), commission (194H), dividends (194), e-commerce operators (194-O), and many other categories. Form 26Q is the most common TDS return for businesses — it captures every rupee of TDS deducted on business payments.
Form 27Q — Payments to Non-Residents
Filed by any person making non-salary payments to non-residents — covering Section 195 payments such as interest, royalty, technical fees, and gains from capital assets. Form 27Q requires the lower deduction certificate if any, treaty benefit details, and the nature of income. FEMA and income tax interact significantly here; our team coordinates both aspects.
Form 27EQ — Tax Collected at Source
The return for TCS, applicable to sellers of specified goods — scrap, timber, tendu leaves, minerals, motor vehicles above ₹10 lakh, foreign remittance under LRS above ₹7 lakh, and overseas tour packages. TCS rates, thresholds, and TAN requirements for collectors are managed by our team.
Specific TDS obligations on rent payments (Sections 194I and 194IB) and property purchases (Section 194IA) are covered in detail on our TDS on Rent and TDS on Purchase of Property service pages.
Quarterly TDS Return Due Dates
| Quarter | Period Covered | Due Date (Non-Government Deductors) | Due Date (Government Deductors) |
|---|---|---|---|
| Q1 | April to June | 31 July | 15th of the month following the quarter |
| Q2 | July to September | 31 October | 15th of the month following the quarter |
| Q3 | October to December | 31 January | 15th of the month following the quarter |
| Q4 | January to March | 31 May | 15 May |
Historical Context: TDS in India's Tax Collection Framework
TDS was introduced in the Income Tax Act of 1961 as a mechanism to collect tax at the point of payment — ensuring that tax is remitted before income reaches the recipient's hands. The original framework covered limited payment categories: salaries under Section 192 and interest on securities. Over the subsequent six decades, the scope expanded progressively — covering contractors (Section 194C introduced in 1972), professional fees (194J), rent (194I), and ultimately encompassing over 30 distinct payment categories by 2023.
The TRACES portal, launched by the Income Tax Department in 2011-12, transformed TDS compliance management. Pre-TRACES, TDS returns were paper-based with limited cross-verification capability. TRACES enabled deductee-wise PAN-level matching of TDS returns with income tax returns — creating a comprehensive cross-verification system that has significantly improved TDS compliance and reduced tax evasion through non-deduction.
Recent Expansions of TDS Scope
| Effective From | Provision | What It Requires of Deductors |
|---|---|---|
| July 2021 | Section 206AB — higher TDS for non-filers | Check each deductee's ITR filing status before applying the standard rate |
| July 2022 | Section 194R — benefits and perquisites in business or profession | Deduct on non-cash benefits provided to business associates |
| July 2022 | Section 194S — virtual digital assets | Deduct on payments for cryptocurrency and other virtual digital assets |
| 1 October 2024 | Budget 2024 rate rationalisation | Apply different rates for payments before and after the effective date within the same quarter |
The Section 206AB higher TDS rate for non-ITR-filers is particularly impactful — it requires deductors to check the ITR filing status of every deductee before applying the standard TDS rate. Our team tracks all TDS rate changes and implements them in client TDS computations on the effective date.
Our TDS Return Filing Process: Step by Step
TAN Registration and Maintenance
Every deductor must have a TAN (Tax Deduction Account Number) obtained from the TIN portal. We assist new deductors in TAN application and registration on TRACES. For existing deductors, we ensure the TRACES profile is current, with correct contact details for e-filing communications.
Payment and Deductee Data Collection
We extract from the books all TDS-applicable payments made during the quarter, along with the payee's name, PAN, type of payment (section), date, gross amount, TDS deducted, and TDS challan details — BSR code, challan date, and serial number. Payments across all sections are captured in the correct Form 26Q or 24Q table.
TDS Rate Verification and 206AB Check
For each deductee we verify the applicable rate under the relevant section; whether the deductee has a valid PAN, since Section 206AA applies 20% or twice the rate, whichever is higher, without one; whether the deductee is a non-ITR-filer covered by Section 206AB; and any lower deduction certificate (Form 13) submitted by the deductee.
Challan Reconciliation
TDS challan details must match exactly between the return and the OLTAS (Online Tax Accounting System) records. Any mismatch causes the return to fail FVU validation. We reconcile all TDS challan payments against the OLTAS statement before preparing the return. See our TDS Return Preparation page for the detailed data preparation process.
RPU Data Entry and FVU Validation
Data is entered into the NSDL Return Preparation Utility (RPU) — the prescribed software for TDS return preparation. The completed RPU file is validated using the File Validation Utility, which checks format errors, PAN format validation, challan matching, and other validations. FVU errors are resolved before the file is submitted.
Portal Upload and Filing
The FVU-validated file is uploaded to the TIN portal using the deductor's TRACES credentials and Digital Signature Certificate. After successful upload, the portal generates an acknowledgment (PRN — Provisional Receipt Number), which we download and archive.
Form 16 and 16A Generation on TRACES
After the return is processed, typically in 3 to 5 working days, Form 16 (salary TDS from Form 24Q) or Form 16A (non-salary TDS from Form 26Q) is generated on TRACES. We download and provide these certificates for distribution to deductees. Form 16A is due within 15 days of the due date of filing the quarterly return.
Common TDS Return Errors We Prevent
- Wrong TDS section code — 194C contractor versus 194J professional — attracting scrutiny and demands for the rate difference
- Challan mismatch: a wrong BSR code or serial number causing FVU rejection
- Wrong deductee PAN, causing a 20% TDS demand for the difference from the standard rate
- Not applying Section 206AB higher TDS for non-ITR-filers
- Short deduction — deducting TDS on the net amount instead of the gross for payments inclusive of GST
- Missing the Form 16A distribution window after the quarterly return is processed
TDS non-compliance frequently overlaps with GST compliance — payments for services with GST attract TDS on the full amount or on the pre-GST amount, depending on the specific provisions. Our integrated GST and TDS advisory, covering GST Return Filing and TDS return filing, addresses these interface issues. Where a TDS or GST notice has already been issued, our appeal and notice response team takes it forward.
Why Choose N D Savla & Associates for TDS Return Filing in Mumbai?
All Four TDS Return Forms Under One Roof
We file Form 24Q, 26Q, 27Q, and 27EQ — covering salary TDS, non-salary TDS, non-resident payments, and TCS. Most businesses need multiple forms; our team handles all of them in a single quarterly cycle.
Section 206AB Compliance
We maintain a Section 206AB non-filer database for each client's regular deductees — checking ITR filing status before each quarterly return and applying higher TDS rates where required.
Zero Challan Mismatch Policy
Our rigorous pre-filing challan reconciliation against OLTAS eliminates challan mismatch errors — the most common cause of TDS return rejection and demand notices.
Form 16 and 16A Preparation
After return processing, we prepare and provide Form 16 (salary) and Form 16A (non-salary) TDS certificates — including the TRACES-generated Part A and our CA-prepared Part B for Form 16.
Integrated Income Tax Advisory
Our TDS return filing service is integrated with our broader income tax advisory — covering TDS on Rent, TDS on Purchase of Property, and TDS Return Preparation services.
Correction Statements Handled
When a deductee reports a PAN discrepancy or challan details need updating, we prepare and file the correction statement on TRACES — there is no limit on the number of corrections, but each one needs to be right.
Frequently Asked Questions — TDS Return Filing
What are the due dates for quarterly TDS returns?
Q1 (April to June): 31 July. Q2 (July to September): 31 October. Q3 (October to December): 31 January. Q4 (January to March): 31 May. Government deductors have different due dates — the 15th of the month following the quarter for Q1 to Q3, and 15 May for Q4. Late filing attracts ₹200 per day under Section 234E from the due date until the actual filing date.
What is the penalty for not filing TDS returns?
Late filing fee under Section 234E is ₹200 per day per return from the due date until filing, capped at the TDS amount. Penalty under Section 271H ranges from ₹10,000 to ₹1,00,000 if the return is not filed within 1 year of the due date. Additionally, under Section 201(1A), interest at 1.5% per month from the date of deduction to the date of payment is charged on TDS amounts deducted but not paid.
Can TDS returns be revised after filing?
Yes. TDS returns can be corrected through a correction statement on TRACES — to correct deductee PAN, amount, or challan details, or to add or delete deductee entries. There is no limit on the number of correction statements. Corrections may be required when deductees report PAN discrepancies or when challan details need updating. Our TDS Return Preparation service includes correction statement preparation as required.
What is Section 206AB higher TDS and how is it determined?
Section 206AB, effective 1 July 2021, requires deductors to apply TDS at twice the prescribed rate, or 5%, whichever is higher, on payments to 'specified persons' — those who have not filed an ITR for the previous two financial years and whose total TDS or TCS in each of those years exceeded ₹50,000. The Income Tax Compliance Check Facility on TRACES allows deductors to check a deductee's 206AB status in bulk, and our team uses this facility before each quarterly filing. For individuals with TDS on rental income under Section 194IB or property purchase obligations under Section 194IA, our TDS on Rent and TDS on Purchase of Property services provide dedicated guidance.
How is TDS on GST-inclusive payments calculated?
CBDT Circular 23/2017 clarifies that TDS under the Income Tax Act is deductible on the amount exclusive of GST — that is, on the base amount without including GST. This is different from TDS under the GST Act (Section 51), which is separate. For invoices where GST is separately charged and indicated, TDS is on the pre-GST amount. For lump-sum invoices where GST is not separately indicated, TDS is on the full invoice amount. Our team applies the correct treatment based on invoice format.
Keep Every Quarter Penalty-Free
Form 24Q, 26Q, 27Q and 27EQ prepared, validated and filed on time — with Form 16 and 16A delivered to your employees and vendors. Mumbai, Thane, Navi Mumbai, Pune and pan-India.
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- ✉ nainitsavla@savlagroup.in
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