TDS Return Filing Guide: Forms 24Q, 26Q, 27Q, 27EQ

Tax Deducted at Source (TDS) is a tax collection mechanism where a person providing us income directly deducts tax and deposits it to the government. The person who deducts the tax is called the ‘deductor’. TDS is deducted for specified types of income and is remitted to the government within the applicable due dates. 

All the deductors responsible for deducting taxes are required to file a quarterly statement to the government, containing the details of amount of TDS, amount of payment, rate of TDS deducted, relevant TDS section, details of the deductor and the payee, etc., These statements are popularly called TDS returns. 

There are various types of forms for different types of TDS payments. It includes form 24Q, 26Q, 26QB, 26QC, 27Q and 27EQ. This article explains in detail about various forms applicability, process, due dates and consequences of non-compliance.

What are TDS Forms?

• TDS forms are statements that a person deducting taxes must file with the government within the due dates.
• It contains details such as information about the deductor and deductee, the amount and rate of TDS deducted, the date on which the TDS amount is deposited with the government, and the nature of transactions.
• There are different types of TDS forms for various transactions.
• TDS returns are mostly filed quarterly, but for certain transactions, they need to be filed right after the transaction occurs.
• Information from these returns is picked up and reflected in the payee's Form 26AS. Therefore, the returns filed need to be accurate. Inaccuracy in return filing might adversely affect both the deductor and the payee.

Types of TDS Return Forms

The following table presents nature of transactions and the respective TDS forms relevant for them.

TDS Return Due Dates & Timelines

The due dates for filing different types of TDS returns are presented in the table below

Penalties & Late Filing Consequences

• Filing TDS statements cum returns within specified due dates becomes crucial as the information in those statements are used both by the department and the payee. 
• Information reflected in TDS statements are reflected in the TDS forms provided to the payee (like Form 16, 16A, etc, and form 26AS).
• Late filing may attract penalties and unwanted hassle on the side of the payee. The following are the statutory consequences of late filing or non filing of TDS returns

Late Fee for Delayed Filing - Section 234E

• Under section 234E, a late fee of Rs 200 per day should be paid for every day of delay in filing TDS returns. 
• The maximum amount of penalty shall not exceed the amount of TDS deducted.

For example, Mr A has filed a TDS statement (Form 24Q) with a 100-day delay. Considering the late fee of Rs . 200 per day, the penalty comes to Rs. 20,000. However, since the TDS deducted as per Form 24Q is Rs. 15,000, the total late fee amount is restricted to Rs. 15,000. 

Penalty for Non-Compliance - Section 271H 

• Under section 271 H, non-filing of TDS returns within the due date attracts a penalty of Rs. 10,000 to Rs. 1 lakh.

Penalty under section 271H will not be levied on satisfaction of the following conditions:

• TDS amount is paid to the government.
• TDS returns are filed within 1 year from the due date of filing TDS returns.
• TDS late filing fees and interest (if any) is paid to the government.

How to file TDS Returns?

For filing TDS return (Form 24Q, 26Q and 27Q) the person should be holding a TAN and the status of TAN should be active. The following steps can be followed to file TDS returns via income tax portal. This procedure can be followed by persons filing quarterly returns.

Step 1: Download the return preparation utility from the NSDL Protean portal.

Step 2: Update the relevant information in the return preparation utility and download the FYU file

Step 3: Log in to the income tax portal, go to e-filing> income tax forms.

Step 4: Choose the relevant forms, upload the required information and the FYU file, and click ‘Proceed to e-Verify’.

TDS Returns Correction Statement

On any errors in filing TDS returns, a TDS correction statement can be filed online. 

Step 1: Download the return correction utility from the NSDL Protean Portal and install it in your system.

Step 2: Log in to TRACES and download the consolidated TDS file

Step 3: Import the consolidated file into the utility.

Step 4: Make the required corrections and generate the FYU file.

Step 5: You can file the correction statement online through the TRACES portal or offline by visiting the nearest TIN facilitation center.

Procedure to file Challan Cum Statements

For one time TDS deductions, a challan cum statement facility is provided by the income tax portal. For such TDS deductions, no TAN is required. The following procedure can be followed to file these statements on the income tax portal

Step 1: Login to Income tax portal

Step 2: Click on E-filing tab > E-pay tax.

Step 3: Choose the relevant form, whether it is Form 26QB, 26QC, 26QD or 26QE.

Step 4: Enter the relevant information on the fields and click next.

Step 5: You will be able to pay and file the statement. Pay later option is also available

TDS Certificates & TDS Forms

• Though often used interchangeably, TDS forms are different from TDS certificates.
• TDS forms used for filing statements with the government include Form 24Q, 26Q, 27Q, 26QE, etc.. 
• The government fetches information from the TDS forms filed, generates TDS certificates, and forwards them to the TDS deductors. Eventually, these certificates are made available to the payees. These certificates include Form 16, 16A, etc.