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TDS Filing – Tax Deducted at Source Returns

Who Files This?

Any person (Company, LLP, Firm, or Individual) who is required to deduct tax at source (TDS) under the Income Tax Act must file quarterly TDS Returns with the Income Tax Department.

This includes:

  • Companies deducting TDS on salaries, contractors, rent, professional fees, etc.

  • LLPs, Partnership Firms, and Individuals whose turnover exceeds the tax audit threshold.

  • Government offices and organizations making payments subject to TDS.

Applicability Criteria

TDS applies when payments exceed prescribed thresholds under the Income Tax Act, such as:

  • Salary (u/s 192).

  • Interest other than securities (u/s 194A).

  • Contractors/sub-contractors (u/s 194C).

  • Professional/technical services (u/s 194J).

  • Rent (u/s 194I).

  • Commission, brokerage, dividends, etc.

Why It Matters

TDS ensures timely collection of tax at the source of income. Proper filing:

  • Maintains compliance with Income Tax laws.

  • Enables deductees (employees, vendors, contractors) to claim credit of TDS in their ITR.

  • Avoids penalties, interest, and disallowance of expenses.

Process of Filing

  1. Deduct TDS while making payments to employees/vendors.

  2. Deposit TDS with the Government using Challan ITNS-281 by the 7th of the following month.

  3. Prepare quarterly TDS return in prescribed forms:

    • Form 24Q – TDS on Salary.

    • Form 26Q – TDS on all payments other than salary.

    • Form 27Q – TDS on payments to Non-residents.

    • Form 27EQ – Statement of TCS (Tax Collected at Source).

  4. File return online via the TIN-NSDL / Income Tax portal.

  5. Download Form 16 / 16A from TRACES and issue to employees/vendors.

Due Dates

  • Deposit of TDS: 7th of next month (for March: 30th April).

  • Quarterly TDS Returns:

    • Q1 (Apr–Jun): 31st July.

    • Q2 (Jul–Sep): 31st October.

    • Q3 (Oct–Dec): 31st January.

    • Q4 (Jan–Mar): 31st May.

  • Form 16 (Salary TDS Certificate): by 15th June of next FY.

  • Form 16A (Other than Salary): within 15 days from due date of filing TDS return.

Penalty for Non-Compliance

  • Late filing fee (u/s 234E): ₹200 per day of default (up to TDS amount).

  • Penalty (u/s 271H): ₹10,000 to ₹1,00,000 for failure to file or incorrect filing.

  • Interest:

    • 1% per month for delay in deduction.

    • 1.5% per month for delay in deposit of TDS.

How Law to Corporate (LTC) Helps

  • Identifying applicable TDS sections & thresholds.

  • Timely calculation and deposit of TDS.

  • Preparation & filing of quarterly TDS returns (24Q, 26Q, 27Q, 27EQ).

  • Downloading & issuing Form 16 / 16A to employees and vendors.

  • Ensuring 100% compliance to avoid penalties and litigation.