Quarterly TDS Returns (Form 24Q / 26Q)
Every company that deducts TDS (Tax Deducted at Source) must file quarterly TDS returns with details of all deductions and deposits made during the quarter. Form 24Q covers TDS on salaries; Form 26Q covers TDS on all non-salary payments to residents (rent, professional fees, contractor payments, interest, etc.). TDS deposited must be linked to the correct PAN/TAN and returned to the deductee via Form 16/16A.
Who this applies to
- All companies that deduct TDS on any payment (salary, professional fees, rent, interest, etc.)
- Companies making payments to contractors/sub-contractors above INR 30,000 per contract or INR 1 lakh per year
- Companies paying rent above INR 2,40,000 per year
- Companies paying professional fees above INR 30,000 per year
What to file
Form 24Q (salary TDS) and Form 26Q (non-salary TDS) filed via NSDL TIN portal or TRACES (https://www.tdscpc.gov.in). Each return includes: deductor TAN, deductee PAN and name, nature of payment (Section code), amount paid, TDS deducted and deposited, challan details (BSR code, date, amount).
How to file
Use NSDL RPU (Return Preparation Utility) or third-party TDS software (ClearTDS, Webtel, etc.) to prepare the FUV file. Validate with File Validation Utility (FVU). Upload to TRACES or submit at TIN facilitation centres. File with Responsible Person's DSC or EVC.
Payment due
TDS must be deposited by the 7th of the following month (Challan 281 on incometax.gov.in). The quarterly return is filed by the dates above — filing and deposit are separate obligations.
Penalties for missing this deadline
Late filing fee under Section 234E: INR 200 per day per return until filed, up to the TDS amount. Penalty under Section 271H: INR 10,000 to INR 1,00,000 for non-filing or incorrect filing. Interest: 1% per month for failure to deduct; 1.5% per month for failure to deposit. Deductee cannot see TDS credit in Form 26AS/AIS until the return is filed.
Filing checklist
- Confirm all TDS deductions and deposits for the quarter
- Match challan BSR codes and deposit dates accurately
- Verify all deductee PANs are correct (wrong PAN = credit goes to wrong person)
- Download Form 16/16A from TRACES after return is accepted
- Issue Form 16 to employees by 15 June; Form 16A to others within 15 days of return due date
Common mistakes to avoid
- Wrong TAN or PAN of deductee — TDS credit does not appear in deductee's Form 26AS
- Mismatch between challan amount deposited and return amount — causes processing error
- Not filing separate Form 24Q for each quarter even if no new deductions
- Issuing Form 16/16A before downloading from TRACES — the generated format is required for validity
- Missing salary TDS deductions for perquisites (employee stock options, club memberships, car usage)
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