TDS Return Filing (Form 24Q, 26Q, 27Q): Due Dates, Forms & Common Errors
Introduction
TDS (Tax Deducted at Source) return filing is a critical compliance requirement for all businesses in India, especially startups and SMEs. Whether you’re paying salaries, contractor fees, or interest to non-residents, you must deduct and deposit TDS and file the correct TDS return form.
This blog serves as a beginner-friendly yet in-depth guide to help entrepreneurs, small business owners, and finance teams understand the purpose and filing process for Form 24Q, 26Q, and 27Q, including their applicability, due dates, formats, and common mistakes to avoid.
What Is a TDS Return?
A TDS return is a quarterly statement submitted by a deductor (your business) to the Income Tax Department, detailing the TDS deducted and deposited on various payments.
Filing accurate TDS returns is essential for:
- Claiming TDS credits by payees
- Issuing TDS certificates (Form 16, 16A)
- Avoiding interest, penalties, and legal notices
Types of TDS Return Forms: 24Q, 26Q, 27Q
1. Form 24Q: For Salary Payments
- Applicability: Filed for TDS deducted on salaries under Section 192
- Who Should File: Companies, startups, and LLPs paying salaries to employees
- Frequency: Quarterly
- Includes: PAN of employee, salary breakup, deductions, and tax computation
- TDS Certificate Issued: Form 16 (annually)
2. Form 26Q: For Non-Salary Domestic Payments
- Applicability: TDS on all payments other than salary made to residents
- Includes: Contractor payments, rent, professional fees, commission, interest
- Who Should File: All deductors making such payments
- Sections Covered: 194A, 194C, 194H, 194I, 194J, etc.
- TDS Certificate Issued: Form 16A (quarterly)
3. Form 27Q: For Payments to Non-Residents
- Applicability: TDS on payments made to non-resident Indians (NRIs) and foreign entities
- Examples: Interest, royalty, technical fees, dividends
- Includes: PAN or Passport, amount paid, TDS deducted under Section 195
- Challenging Part: Involves checking DTAA (Double Taxation Avoidance Agreements)
TDS Return Filing Due Dates (FY 2024–25)
| Quarter | Period | Due Date |
| Q1 | April – June | 31st July 2024 |
| Q2 | July – September | 31st Oct 2024 |
| Q3 | October – December | 31st Jan 2025 |
| Q4 | January – March | 31st May 2025 |
Timely filing helps avoid penalties and ensures smooth issuance of Form 16/16A to employees and vendors.
How to File TDS Returns: Step-by-Step
- Obtain TAN: Ensure you have a valid Tax Deduction and Collection Account Number (TAN).
- Deduct TDS: As per applicable section and rate.
- Deposit TDS: Through Challan ITNS-281 by the 7th of the next month.
- Prepare TDS Return File: Use TDS Return Preparation Utility (RPU) from NSDL.
- Validate with File Validation Utility (FVU): Before uploading.
- Upload to TRACES Portal: Using your TAN login.
- Download Form 16/16A: After successful filing.
Penalties for Late or Incorrect TDS Filing
| Default | Penalty/Consequence |
| Late filing of return | ₹200/day (Max: Amount of TDS in the return being filed) |
| Non-filing within 1 year | Prosecution + Penalty + interest |
| Late TDS deposit | 1.5% per month interest |
| TDS not deducted | 1% per month interest |
| Wrong PAN or missing details | ₹10,000 |
| No PAN | Higher TDS will be deducted as per section 206AA. For example, in case of Professional Services, the deductor will deduct 20%, TDS instead of 10% |
| Not issuing Form 16/16A | ₹100/day per certificate till the default continues |
Common Errors to Avoid in TDS Return Filing
- Incorrect PAN or TAN entries
- Mismatch in challan details and amounts
- Using wrong form (e.g., Form 26Q instead of 27Q)
- Missing deductions in quarterly return
- Delays in issuing TDS certificates
- Incorrect tax calculation or section code
- Omitting nil returns (still required in some cases)
FAQs on TDS Return Filing
Q1. Can I file TDS returns without a TAN?
Ans:- No. A valid TAN is mandatory for filing any TDS return.
Q2. Is TDS return filing required if no TDS was deducted in a quarter?
Ans:- Yes, a nil return may still be required to be filed.
Q3. Can TDS returns be revised?
Ans:- Yes, if errors are found, a correction return can be filed.
Q4. How do I issue Form 16/16A after filing?
Ans:- Log in to the TRACES portal and download it once the return is processed.
Q5. What happens if I miss the TDS filing deadline?
Ans:- Penalties of ₹200/day apply, and it may affect your compliance score.
Final Thoughts
Filing TDS returns—whether it’s Form 24Q, 26Q, or 27Q—is a legal requirement that startups and SMEs cannot afford to ignore. Understanding the purpose, format, and due dates of these forms is key to staying compliant and building financial credibility.
Need help filing your TDS returns? Lawgical Startup provides end-to-end TDS compliance services—from TAN registration to quarterly return filing and Form 16 generation.
Talk to our experts today and ensure your startup remains 100% compliant with TDS regulations.
Related Services by Lawgical Startup:
- TDS Compliance & Filing
- Tax Filing for Businesses
- GST Registration & Returns
- ROC Annual Filing
- Payroll Management