TDS Return Filing Services
Quarterly TDS return filing — Form 24Q, 26Q, 27Q, 27EQ — with traces correction support and Form 16/16A issuance.
What our TDS Return Filing service covers
How the engagement works
Documents required
- → TAN (Tax Deduction Account Number)
- → PAN details of all deductees
- → Monthly TDS challan copies (ITNS-281)
- → Salary register with month-wise breakup
- → Vendor payment register with TDS deduction
- → Rent agreements (for Sec 194-I)
- → Professional fee bills (for Sec 194J)
- → Contractor agreements (for Sec 194C)
- → Lower deduction certificates (if any)
- → PAN-Aadhaar link status of deductees (else higher rate under 206AB)
TDS return forms and due dates
| Form | Purpose | Due Dates (Q1-Q4) |
|---|---|---|
| 24Q | TDS on Salary (Section 192) | 31 Jul, 31 Oct, 31 Jan, 31 May |
| 26Q | TDS on Non-salary (resident) | 31 Jul, 31 Oct, 31 Jan, 31 May |
| 27Q | TDS on payments to non-residents | 31 Jul, 31 Oct, 31 Jan, 31 May |
| 27EQ | TCS — collected at source | 15 Jul, 15 Oct, 15 Jan, 15 May |
Key TDS sections and rates (FY 2025-26)
| Section | Payment Type | Threshold | Rate |
|---|---|---|---|
| 192 | Salary | Above exemption limit | As per slab |
| 194A | Interest (non-securities) | Rs 40,000 (Rs 50,000 senior citizens) | 10% |
| 194C | Contractor payments | Rs 30,000 single / Rs 1,00,000 annual | 1% (individual) / 2% (others) |
| 194H | Commission | Rs 15,000 | 2% (effective 1 Oct 2024) |
| 194-I | Rent | Rs 2,40,000 annual | 10% (land/building) / 2% (plant) |
| 194-IB | Rent by individuals | Rs 50,000/month | 2% (effective 1 Oct 2024) |
| 194J | Professional fees | Rs 30,000 | 10% (2% for technical services) |
| 194Q | Purchase of goods | Rs 50 lakh from a seller | 0.1% |
| 206C(1H) | TCS on sale of goods | Rs 50 lakh | 0.1% |
Important: PAN-Aadhaar linkage (Section 206AB)
From 1 July 2021, if a deductee's PAN is not linked with Aadhaar, TDS must be deducted at higher of (a) twice the prescribed rate, or (b) 5% under Section 206AB. From 1 July 2023, an inoperative PAN is treated as if the deductee has not furnished a PAN, attracting 20% TDS under Section 206AA. We help verify PAN-Aadhaar linkage status of all deductees before deduction.
Penalties for non-compliance
- Late deposit of TDS: Interest at 1.5% per month under Section 201(1A) from date of deduction to date of deposit
- Late filing of return: Late fee of Rs 200 per day under Section 234E (capped at TDS amount)
- Non-deduction: Interest at 1% per month under Section 201(1A) plus disallowance of expense under Section 40(a)(ia)
- Wrong PAN reporting: Penalty of Rs 10,000 per wrong PAN under Section 272B
- Form 16/16A not issued: Rs 100 per day under Section 272A
Transition to Income Tax Act 2025
From FY 2026-27 (Tax Year 2026-27), all TDS sections (192-196D) consolidate under Section 393 of the Income Tax Act 2025 with Numeric Payment Codes (NPC) 1001-1067 replacing alphanumeric section numbers. For example, TDS on rent (current Section 194-I) becomes NPC 1007 under Section 393. Use our IT Act 2025 Finder to look up the new code for any payment type.
Frequently asked questions
I am an individual paying rent of Rs 60,000/month. Do I need a TAN? +
No. Under Section 194-IB, individuals/HUFs not subject to tax audit can deduct TDS on rent above Rs 50,000/month and deposit using Form 26QC using PAN (not TAN). The deposit is once a year — in the month of vacating premises or by 30 April of the next FY. Form 16C is issued to the landlord.
What is the TDS rate if deductee's PAN is wrong or not provided? +
Under Section 206AA, if PAN is not furnished or is invalid, TDS is deducted at the higher of: (a) the prescribed rate, (b) the rate in force, or (c) 20%. This applies regardless of the actual prescribed rate.
Can I revise a TDS return after filing? +
Yes. TDS returns can be revised through correction statements on TRACES. Common corrections include: PAN correction (C2 correction), challan correction (C5), deductee detail update (C3), and addition/deletion of deductee records (C9). Each correction must be filed within reasonable time of identifying the error to avoid default notice.
My deductee says he hasn't received TDS credit even though I deposited. What to do? +
TDS credit appears in deductee's Form 26AS only after the deductor files the quarterly return successfully and TRACES processes it (15-30 days). Check: (1) Correct PAN of deductee in the return, (2) No challan mismatch, (3) Return is not in "Defaulted" status on TRACES. If all are correct, the deductee should wait for 26AS update. If still missing after 60 days, file a correction return.
What is the difference between Section 194Q and 206C(1H)? +
Both relate to large-value goods transactions above Rs 50 lakh. Section 194Q (TDS by buyer) is the buyer's liability when annual purchases from a seller exceed Rs 50 lakh and buyer's turnover exceeded Rs 10 crore. Section 206C(1H) (TCS by seller) applies to the seller in the same transaction. If both apply, Section 194Q overrides 206C(1H) — the buyer deducts TDS and the seller doesn't collect TCS. Both at 0.1%.
Do I need to issue Form 16 if employee's salary is below taxable limit? +
Even if no TDS is deducted (because salary is below exemption limit), it is good practice to issue a salary certificate to the employee. However, statutory Form 16 is required only when TDS has been deducted from salary. For Form 16A (non-salary), it must be issued for every TDS deduction within 15 days of the return filing due date.
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