TDS Return Filing in India: A Complete Guide
Tax Deducted at Source (TDS) is a system under the Income Tax Act, 1961 where tax is collected at the very source of income.
The person responsible for making certain payments is required to deduct tax at a prescribed rate and deposit it with the Government.
Filing TDS Returns is a statutory requirement for all deductors to report these deductions and deposits quarterly.
What is TDS Return Filing?
TDS Return Filing is the quarterly statement submitted by the deductor to the Income Tax Department, containing details of:
- Payments made
- TDS deducted
- TDS deposited
- PAN details of deductees
It ensures proper credit of TDS to the recipient’s account and compliance with tax laws.
Who Needs to File TDS Returns?
TDS return filing is mandatory for:
- Companies
- LLPs and Partnership Firms
- Government offices
- Individuals/HUFs (if liable to deduct TDS under provisions)
Common cases where TDS is applicable:
- Salary payments
- Contractor payments
- Professional fees
- Rent
- Interest
- Commission
- Payments to non-residents
TDS Rates & Applicability (FY 2024–25)
| Section | Nature of Payment | Threshold Limit (₹) | TDS Rate | Applicable To |
|---|---|---|---|---|
| 192 | Salary | Basic exemption limit | Slab rates | Employer paying salary |
| 192A | Premature withdrawal from EPF | 50,000 | 10% | EPF trustees |
| 193 | Interest on securities | 10,000 | 10% | Companies / others |
| 194 | Dividend (other than exempt) | 5,000 | 10% | Company to shareholder |
| 194A | Interest (other than securities) | 40,000 (50,000 for senior citizens) | 10% | Banks, firms, companies |
| 194C | Contractor payment | 30,000 per contract / 1,00,000 aggregate | 1% (individual/HUF), 2% (others) | Contractual work |
| 194H | Commission/Brokerage | 15,000 | 5% | Payer to agent/broker |
| 194I(a) | Rent (land/building/furniture) | 2,40,000 | 10% | Tenant |
| 194I(b) | Rent (plant & machinery) | 2,40,000 | 2% | Tenant |
| 194IA | Transfer of immovable property | 50,00,000 | 1% | Buyer of property |
| 194IB | Rent by individual/HUF (not liable to audit) | 50,000 per month | 5% | Tenant |
| 194J | Professional/technical fees, royalty | 30,000 | 10% (2% for technical services) | Payer |
| 194M | Payment by individual/HUF (not liable to audit) for work/contract/profession | 50,00,000 | 5% | Payer |
| 195 | Payment to non-resident | Any amount | Rates as per DTAA or Act | Payer to NRI/foreign co. |
Rates may be subject to surcharge, cess, and DTAA provisions where applicable.
Types of TDS Returns
| Form | Particulars | Frequency |
|---|---|---|
| Form 24Q | TDS on salaries | Quarterly |
| Form 26Q | TDS on all payments except salaries (to residents) | Quarterly |
| Form 27Q | TDS on payments to non-residents | Quarterly |
| Form 27EQ | TCS return | Quarterly |
Due Dates for TDS Return Filing
| Quarter | Period Covered | Due Date |
|---|---|---|
| Q1 | 1st April – 30th June | 31st July |
| Q2 | 1st July – 30th September | 31st October |
| Q3 | 1st October – 31st December | 31st January |
| Q4 | 1st January – 31st March | 31st May |
Documents Required
- TAN (Tax Deduction and Collection Account Number)
- PAN of deductor & deductees
- TDS challan details
- Payment details (nature & amount)
- Salary details (for Form 24Q)
- Digital Signature Certificate (if applicable)
Process of TDS Return Filing
- Collect TDS Data – Deduction and challan details.
- Prepare TDS Statement – Using prescribed file format (RPU/Java utility).
- Validate – Using File Validation Utility (FVU).
- Upload – On TRACES/NSDL portal using TAN login.
- Generate Acknowledgment – Keep for compliance records.
Penalties for Delay or Non-Filing
- Late Filing Fee: ₹200/day (u/s 234E) until filing.
- Penalty: ₹10,000 to ₹1,00,000 (u/s 271H).
- Interest: On late deduction/deposit.
- Disallowance of Expense: If TDS not deducted/paid.
Benefits of Timely Filing
- Avoids late fees and penalties.
- Smooth issuance of Form 16/16A.
- Ensures proper credit to deductees.
- Maintains clean compliance records.
Industries Served :
- Professional Services
- Manufacturing & Industrial
- Retail & E-Commerce
- Food & Hospitality
- IT & Tech Startups
- Logistics & Transport
- Real Estate & Construction
- Beauty, Wellness & Lifestyle
- Entertainment & Creators
- Healthcare Providers
- Education & Coaching
