Businesses and individuals who deduct tax at source (TDS) or collect tax at source (TCS) must deposit the tax with the government and file quarterly statements reporting the deductions. Accurate returns make sure deductees get credit for the tax in their Form 26AS and help you avoid late fees, interest and disallowance of expenses.
Under the Income-tax Act, 2025, which applies from 1 April 2026, TDS and TCS provisions and form references have been realigned. We file each statement in the format applicable to the relevant period.
Types of TDS/TCS Returns
| Return | Covers |
|---|---|
| Form 24Q | TDS on salaries |
| Form 26Q | TDS on payments other than salary to residents |
| Form 27Q | TDS on payments to non-residents |
| Form 27EQ | Tax collected at source (TCS) |
| Form 26QB / 26QC | TDS on purchase of property and rent by certain individuals |
Due Dates
Payment of TDS: by the 7th of the following month; for March, by 30 April.
Quarterly returns:
| Quarter | Due Date |
|---|---|
| April – June | 31 July |
| July – September | 31 October |
| October – December | 31 January |
| January – March | 31 May |
Consequences of Default
- Late fee for every day of delay in filing, up to the amount of TDS
- Interest for late deduction and late payment
- Penalty for failure to file or for incorrect filing
- Disallowance of a portion of the expense in the deductor's income tax computation
- Higher TDS rates where the deductee has not provided a valid PAN
TDS Certificates
- Form 16 – annual certificate for TDS on salary
- Form 16A – quarterly certificate for TDS on other payments
- Form 27D – certificate for TCS
Our Process
- Collect payment and deduction data each quarter
- Verify PANs and applicable TDS rates and sections
- Reconcile challans with deductions
- Prepare and file the quarterly statement through the TRACES-validated utility
- Download and issue Form 16/16A to deductees
- File correction returns and resolve defaults reported on TRACES
Frequently Asked Questions
Who needs a TAN?
Anyone required to deduct or collect tax at source must obtain a Tax Deduction and Collection Account Number (TAN), except individuals deducting TDS on property purchases or certain rent payments.
What if the deductee does not have a PAN?
TDS must be deducted at a higher rate, generally 20% or the applicable rate, whichever is higher.
How can a deductee claim TDS credit?
The deductee claims credit in their income tax return based on the TDS reflected in Form 26AS and AIS, which depends on the deductor filing returns correctly.