TDS Return Filing in Delhi
Quarterly TDS return filing — Form 24Q, 26Q, 27Q, 27EQ — with traces correction support and Form 16/16A issuance.
Quick answers
What is TDS return filing?
TDS return filing is the quarterly statement a deductor files to report tax deducted at source and deposited with the government. Form 24Q covers salary, Form 26Q other payments to residents, Form 27Q payments to non-residents and Form 27EQ tax collected at source. Form 16 and 16A are generated from TRACES after processing.
Who needs to file TDS returns?
Every deductor, including businesses, partnerships, companies, individuals subject to tax audit and individuals making certain specified payments. For Tax Year 2026-27 onwards, deduction falls under the Income Tax Act 2025, where salary TDS moves to Section 392 and most other TDS to Section 393.
How does SKAG and Associates handle TDS returns?
The firm collects salary and vendor payment registers, determines the applicable section, rate and threshold, reconciles challans deposited by the 7th of the following month, pre-validates the quarterly return against TRACES, and files it with DSC or EVC. Form 16 and 16A are issued from TRACES after processing.
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 (Challan ITNS 281, e-Pay Tax)
- → 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 Filing: rules and practical points
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 (Form 143 from Tax Year 2026-27: 31 Jul, 31 Oct, 31 Jan, 31 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 50,000 bank / co-op / post office (Rs 1,00,000 senior citizens); Rs 10,000 others | 10% |
| 194C | Contractor payments | Rs 30,000 single / Rs 1,00,000 annual | 1% (individual) / 2% (others) |
| 194H | Commission | Rs 20,000 | 2% (effective 1 Oct 2024) |
| 194-I | Rent | Rs 50,000 a month or part of a month | 10% (land/building) / 2% (plant) |
| 194-IB | Rent by individuals | Rs 50,000/month | 2% (effective 1 Oct 2024) |
| 194J | Professional fees | Rs 50,000 | 10% (2% for technical services) |
| 194Q | Purchase of goods | Rs 50 lakh from a seller | 0.1% |
Important: inoperative PAN and higher TDS
Section 206AB (higher TDS for specified persons who had not filed returns) was omitted from 1 April 2025. From 1 July 2023, a PAN that is not linked with Aadhaar becomes inoperative and is treated as not furnished, so TDS applies at the higher rate under Section 206AA (generally 20%; Section 397(2) of the Income-tax Act, 2025 from Tax Year 2026-27). The firm checks PAN status of deductees as part of the quarterly work.
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), TDS on salary (current Section 192) moves to Section 392 of the Income Tax Act 2025, and the other TDS sections (193-196D) consolidate under Section 393 with numeric payment codes replacing alphanumeric section numbers (TDS codes 1001-1067; TCS codes under Section 394 start at 1068). For example, TDS on rent of land or building (current Section 194-I) uses code 1009 and payments to contractors (current Section 194C) use code 1023 / 1024. Quarterly returns move to Forms 138 (salary), 140 (non-salary), 144 (non-residents) and 143 (TCS); Forms 26QB/26QC/26QD/26QE merge into Form 141. The late fee under Section 234E becomes Section 427 and the penalty under Section 271H becomes Section 461. Use our IT Act 2025 Finder to look up the new code for any payment type.
TDS Return Filing for clients in New Delhi & Delhi NCR
SKAG and Associates is a firm of Chartered Accountants based at Kh.No-84, Plot No -RZ-I-1, F/Floor, 12/2, Main Rd, opposite Yammaha Showroom, Mahavir Enclave, New Delhi – 110045. We provide tds return filing and allied compliance support to individuals, professionals, firms and companies across New Delhi, South West Delhi and the wider Delhi NCR region, as well as clients elsewhere in India who engage us remotely.
Engagements are conducted strictly in accordance with the Chartered Accountants Act, 1949 and the ICAI Code of Ethics. To discuss your requirement, you are welcome to contact the office or call +91 88022 54567 during working hours (Mon–Sat, 10:00 AM–7:00 PM).
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. For rent paid from 1 April 2026, the same Rs 50,000 per month threshold and 2% rate continue under Section 393(1) of the Income Tax Act, 2025; the deposit and statement are made in Form 141 (Schedule A) and the certificate is Form 132.
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.
Does TCS under Section 206C(1H) still apply alongside Section 194Q? +
Section 206C(1H) (TCS by the seller on sale of goods above Rs 50 lakh) was omitted from 1 April 2025, so only Section 194Q now applies: a buyer whose turnover exceeded Rs 10 crore in the preceding year deducts TDS at 0.1% on purchases from a seller above Rs 50 lakh in the year. From Tax Year 2026-27 the same provision sits in Section 393 of the Income-tax Act, 2025.
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.
Questions about TDS Return Filing?
You may contact CA Gaurav Singh to discuss your specific facts and requirements.
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