Quarterly TDS Return Filing — Complete Guide FY 2025-26
Tax Deducted at Source (TDS) is India's mechanism of collecting income tax at the point of payment. Any person or entity — company, LLP, partnership firm, sole proprietor, individual (in specified cases), or Hindu Undivided Family (HUF) — who deducts TDS while making payments such as salary, contractor fees, rent, professional charges, or interest, is legally required to deposit the deducted amount with the government and then file a quarterly TDS return declaring all such deductions.
The TDS return is not merely a formality — it is the document basis on which deductees see their TDS credit in Form 26AS and AIS. If you deduct TDS but fail to file the return or file it incorrectly, your employees and vendors cannot claim that TDS credit when filing their own ITRs, leading to disputes, demands, and reputational damage for your business.
Quarterly TDS returns are filed using four prescribed forms depending on the nature of payments: Form 24Q for salary payments, Form 26Q for all non-salary domestic payments, Form 27Q for payments to non-residents and foreign companies, and Form 27EQ for Tax Collected at Source (TCS). Each return must be filed every quarter within the prescribed due dates — irrespective of whether TDS was deducted or whether any payment was made.
Taxvio, based in Khatauli (Muzaffarnagar, UP), provides end-to-end quarterly TDS return filing for businesses, employers, and professionals — including TAN registration, challan reconciliation, TRACES correction statements, and lower deduction certificate assistance — serving Uttar Pradesh and pan-India, starting ₹999 per quarter.
Who Must File Quarterly TDS Returns?
Employers & Companies
Any company or business paying salary to employees must deduct TDS under Section 192 and file Form 24Q every quarter.
Proprietors & Partnerships
Proprietors and firms whose accounts are subject to audit under Section 44AB must deduct TDS on contractor, rent, and professional payments.
Contractors & Sub-Contractors
Businesses making payments to contractors or sub-contractors above ₹30,000 per transaction (₹1 lakh annual) must deduct TDS under Section 194C and report in Form 26Q.
Rent Payers (HUF/Individual)
Individuals and HUFs paying rent above ₹50,000 per month must deduct TDS at 2% under Section 194-IB and file Form 26QC (challan-cum-statement).
Businesses Paying Professionals
Payments to doctors, lawyers, CAs, engineers, architects, or consultants exceeding ₹30,000 per year attract TDS under Section 194J — reported in Form 26Q.
Businesses with NRI / Foreign Payments
Any person making payments to non-residents, foreign companies, or NRIs — including royalties, technical fees, and business income — must deduct TDS and file Form 27Q.
Form 24Q vs 26Q vs 27Q vs 27EQ — Which TDS Return Form Do You Need?
| Form | Nature of Payment | Applicable TDS Sections | Who Files |
|---|---|---|---|
| Form 24Q | Salary payments to resident employees | Section 192 (Salary TDS) | All employers — companies, firms, proprietors with employees |
| Form 26Q | All non-salary payments to residents — contractor fees, rent, interest, professional charges, commission, dividends | Sec 194A, 194C, 194H, 194I, 194J, 194S, 194N & others | Companies, firms, audit-liable proprietors, government offices |
| Form 27Q | Payments to non-residents, NRIs & foreign companies — royalties, technical fees, business income, dividends | Sections 195, 196A, 196B, 196C, 196D | Any person / entity making cross-border payments to NRIs or foreign entities |
| Form 27EQ | Tax Collected at Source (TCS) — scrap, timber, tendu leaves, liquor, vehicles, foreign remittance (LRS), e-commerce | Section 206C (all sub-sections) | Sellers, dealers, e-commerce operators, and agents required to collect TCS |
💡 Note: Form 26QC (TDS on rent by individuals/HUF), Form 26QB (TDS on property purchase), and Form 26QD (TDS on payment to resident contractor by individuals) are challan-cum-statement forms — not quarterly returns — but Taxvio assists with these as well.
TDS Return Due Dates — FY 2025-26 (All Quarters)
Missing these quarterly deadlines triggers an automatic ₹200/day penalty under Section 234E — which starts accumulating the very next day.
April – June 2025
31st July 2025
Applies to Form 24Q, 26Q, 27Q, 27EQ
July – September 2025
31st October 2025
Applies to Form 24Q, 26Q, 27Q, 27EQ
October – December 2025
31st January 2026
Applies to Form 24Q, 26Q, 27Q, 27EQ
January – March 2026
31st May 2026
Applies to Form 24Q, 26Q, 27Q, 27EQ
⚠️ Government Deductors: For Central / State Government deductors, Q1–Q3 TDS returns are due on 31st October, 31st January, and 30th April respectively. Q4 due date remains 15th May. Challan deposit (Book entry) is due on 7th of the following month for all deductors (April to February) and 30th April for March.
Most Common TDS Sections for Businesses & Proprietors
Understanding which section applies to each payment type prevents wrong rate deductions — a common reason for TRACES demands and short-deduction notices.
| Section | Nature of Payment | Threshold | TDS Rate | Form |
|---|---|---|---|---|
| 192 | Salary | Above basic exemption limit | Slab rates | 24Q |
| 194A | Interest (other than securities) | ₹40,000 (₹50,000 for senior citizens) | 10% | 26Q |
| 194C | Contractor / Sub-contractor payments | ₹30,000 single / ₹1,00,000 annual | 1% (individual/HUF), 2% (others) | 26Q |
| 194H | Commission or brokerage | ₹15,000 | 5% | 26Q |
| 194I | Rent — land, building, plant & machinery | ₹2,40,000 per year | 2% (machinery), 10% (land & building) | 26Q |
| 194J | Professional / technical service fees | ₹30,000 | 2% (technical), 10% (professional) | 26Q |
| 194Q | Purchase of goods (buyer's TDS) | ₹50 lakh turnover from seller | 0.1% | 26Q |
| 195 | Payments to non-residents / foreign companies | No threshold (all payments) | As per DTAA / applicable rates | 27Q |
Penalties & Interest for TDS Non-Compliance — What's at Stake
TDS non-compliance compounds quickly. ₹200/day under Section 234E begins the very next day after the deadline — and Section 271H penalties are separate and additional.
⚠️ Late TDS Return Filing — Section 234E
₹200 per day of delay, from the day after the due date until the return is filed — subject to a ceiling of the total TDS amount. This is automatically computed by the system and demands are raised through TRACES/Justification Reports.
Consequence: ₹200/day, max = TDS amount deducted
⚠️ Non-Filing or Incorrect Return — Section 271H
Penalty levied in addition to Section 234E for failure to file TDS return within 1 year of due date, or for furnishing incorrect PAN, challan details, or deduction amounts. Can be avoided if TDS + interest is deposited within 1 year.
Consequence: ₹10,000 to ₹1,00,000
⚠️ Short Deduction of TDS — Section 201(1A)
If TDS is deducted at a lower rate or not deducted at all, interest at 1% per month (or part) is charged from the date TDS was deductible to the actual deduction date.
Consequence: 1% per month (simple interest)
⚠️ Short Payment / Late Deposit — Section 201(1A)
Once TDS is deducted, it must be deposited within the due date. Delay in depositing deducted TDS attracts interest at 1.5% per month from deduction date to actual payment date.
Consequence: 1.5% per month (simple interest)
⚠️ Disallowance of Expense — Section 40(a)(ia)
If TDS is not deducted on eligible payments (contractor fees, rent, interest, professional charges), 30% of such payments are disallowed as business expenses, increasing your taxable income significantly.
Consequence: 30% expense disallowance — higher tax
⚠️ Prosecution under Section 276B
In cases of habitual non-deposit of deducted TDS or deliberate evasion, prosecution can be initiated with rigorous imprisonment of 3 months to 7 years along with fine.
Consequence: 3 months to 7 years imprisonment
TRACES Correction Statement — Fixing Errors in Filed TDS Returns
Errors in filed TDS returns — wrong PAN, incorrect challan details, mismatched TDS amounts — must be corrected promptly. These errors cause mismatches in Form 26AS, leading to demands on both the deductor and the deductee.
🔧 Wrong PAN of Deductee
Impact: TDS credit not reflecting in deductee's 26AS — deductee faces tax demand
Fix: Correction via TRACES — C3 type correction
🔧 Incorrect Challan Details
Impact: Mismatch between return and deposited TDS — demand notice raised on deductor
Fix: OLTAS challan correction + C2 type correction statement
🔧 Wrong TDS Amount Reported
Impact: Under-reported deduction leads to 234E interest demand; over-reported creates AIS mismatch
Fix: C5 type correction with revised amounts
🔧 Deductee Entry Missing
Impact: Employee or vendor TDS credit not visible in their Form 26AS — leads to disputes during ITR filing
Fix: Addition of deductee via correction statement
🔧 Section Code Error
Impact: TDS mapped to wrong section — creates mismatch and can attract scrutiny
Fix: Section code correction via TRACES portal
🔧 Late Filing of Original Return
Impact: Even if TDS was deducted and deposited, late filing still attracts 234E penalty
Fix: File original return immediately to stop penalty accrual — arrears still payable
Documents Required for Quarterly TDS Return Filing
Prepare these details in advance for accurate, penalty-free TDS return preparation and e-filing every quarter.
🏦 Deductor & Challan Records
- ✓TAN (Tax Deduction and Collection Account Number) of the deductor
- ✓PAN of the deductor (company, firm, or proprietor)
- ✓TDS challan details — BSR code, challan serial number, date, amount
- ✓Online TDS payment confirmation (via NSDL/income tax portal)
- ✓Bank statement showing TDS deposits for the quarter
- ✓Previous quarter's TDS return acknowledgement (27A) for reference
- ✓TAN registration certificate (for first-time filers)
👥 Deductee (Employee / Vendor) Details
- ✓PAN card of each deductee — employee, contractor, vendor, or professional
- ✓Name and address of each deductee as per PAN records
- ✓Payment amount and TDS deducted for each deductee in the quarter
- ✓Section under which TDS was deducted (194C, 194J, 192, etc.)
- ✓Salary details — gross salary, allowances, deductions (Form 12BB for employees)
- ✓Form 15G / 15H declarations (if applicable — no deduction cases)
- ✓Lower deduction certificates u/s 197 (if any deductee holds one)
Taxvio's 6-Step Quarterly TDS Return Filing Process
Accurate TDS return filing requires correct section mapping, challan reconciliation, and PAN verification before data entry. Our structured quarterly workflow ensures zero-error returns and on-time e-filing every quarter.
Payment & Deduction Data Collection
We collect all payment details made during the quarter — contractor invoices, salary registers, rent agreements, interest ledgers, and professional fee bills. Each payment is mapped to the correct TDS section to ensure accurate rate application and no over or under deduction.
TDS Challan Reconciliation with OLTAS
All TDS challans deposited via bank or online are verified against the OLTAS (Online Tax Accounting System) records. BSR codes, challan serial numbers, dates, and amounts are reconciled to ensure no unmatched challan — a common source of TRACES demand notices.
Deductee PAN Validation & Data Preparation
PAN of every deductee (employee or vendor) is validated against the Income Tax database. Payments are mapped to each deductee with the correct section code, amount, and TDS. Form 15G/15H declarations and lower deduction certificates (u/s 197) are incorporated where applicable.
TDS Return File Preparation (FVU Validation)
The return data file is prepared using the prescribed format and validated using the FVU (File Validation Utility) provided by NSDL/TIN. Any validation errors — wrong PAN structure, section code mismatch, challan over-utilisation — are corrected before proceeding to filing.
e-Filing on TRACES / TIN-NSDL Portal
The validated return file is uploaded on the TIN-NSDL portal or Income Tax TDS portal along with Form 27A (control summary). Acknowledgement with provisional receipt number is generated and shared with you. Post filing, Form 26AS is checked to confirm TDS credits are reflecting correctly for all deductees.
Form 16 / 16A Generation & Advance Calendar
After Q4 filing, we generate Form 16 (salary TDS certificate) and Form 16A (non-salary TDS certificate) from TRACES for distribution to employees and vendors. We also provide a TDS compliance calendar for the next financial year — including challan due dates and return deadlines — to prevent any default.
Estimate Your Quarterly TDS Filing Fee
Enter your deductee count to get an instant per-quarter fee estimate. Combo discount applies when multiple forms are required.
Trusted by Businesses & Employers Across India
"We have 18 employees and multiple contractor payments every month. Taxvio handles all 4 quarters of 24Q and 26Q without any delay — Form 16 is always ready on time."
Rajesh Mittal
Khatauli
"I had a TRACES demand due to wrong challan details in an old TDS return. Taxvio filed the correction statement and got the demand resolved within a week. Very professional."
Priya Agarwal
Muzaffarnagar
"Our startup pays freelancers across India and abroad. Taxvio manages both 26Q and 27Q each quarter — PAN validation, challan matching, everything is handled seamlessly."
Anand Kumar
Noida
TDS Return Filing Services Across India
Taxvio is based in Khatauli, Muzaffarnagar, UP and provides quarterly TDS return filing for businesses, employers, contractors, and professionals across Noida, Delhi NCR, Meerut, Ghaziabad, and Mumbai — as well as pan-India online. We have deep familiarity with TDS compliance requirements for Western UP businesses — sugar mills, textiles, trading, agricultural processing — and the specific payment structures they involve.
Frequently Asked Questions — Quarterly TDS Return Filing
Who is required to file quarterly TDS returns in India?+
What are the due dates for TDS return filing for FY 2025-26?+
What is the penalty for late TDS return filing?+
What is the difference between Form 24Q and Form 26Q?+
Can TDS returns be corrected after filing?+
Is TDS return filing mandatory even if no payment was made in a quarter?+
Q4 FY 2025-26 Due — 31st May 2026
File Your Quarterly TDS Return
Accurately & On Time
Stop the ₹200/day Section 234E penalty from accruing. Taxvio's CA-assisted TDS return filing for Form 24Q, 26Q, 27Q & 27EQ starts at ₹999 per quarter. Serving Khatauli, Muzaffarnagar, Meerut and all of India online.