TDS Return Filing Services in India –
Accurate, On-Time and Fully Compliant
Deducting TDS is only the first step. Filing it correctly — with zero PAN mismatches, zero challan errors, and before every quarterly deadline — is where most businesses run into trouble.
Overview
What Is TDS Return Filing?
TDS stands for Tax Deducted at Source. It is a mechanism where the payer deducts tax before making payment to the recipient. The deducted amount is then deposited to the government by the 7th of the following month. However, depositing the tax is not enough on its own — every deductor must also file a quarterly TDS return, a formal statement that reports all deductions made during that quarter.
The return includes details of the deductor, each deductee, the payments made, the tax deducted, and the challan used for deposit. As a result, the deductee's Form 26AS is updated with the credit — which is then used to calculate the deductee's net tax liability when they file their Income Tax compliance return.
N D Savla & Associates manages end-to-end TDS return filing for employers, businesses, and individuals across India. We handle all TDS forms — Form 24Q for salary TDS and Form 26Q for non-salary payments, plus Form 27Q, Form 26QB, and Form 26QC for special cases.
Return Forms
TDS Return Forms – Which One Applies to You?
The applicable TDS return form depends on the type of payment. Choosing the wrong form leads to a defective return and a notice from the department.
FY 2025-26
TDS Return Due Dates – FY 2025-26
TDS returns are filed quarterly. Missing the deadline by even a single day attracts a mandatory late fee under Section 234E. There is no waiver — the fee is automatic.
| Quarter | Period | Forms | Due Date (Non-Govt) | Due Date (Govt) |
|---|---|---|---|---|
| Q1 | Apr – Jun 2025 | 24Q, 26Q, 27Q, 27EQ | 31 July 2025 | 31 July 2025 |
| Q2 | Jul – Sep 2025 | 24Q, 26Q, 27Q, 27EQ | 31 Oct 2025 | 31 Oct 2025 |
| Q3 | Oct – Dec 2025 | 24Q, 26Q, 27Q, 27EQ | 31 Jan 2026 | 31 Jan 2026 |
| Q4 | Jan – Mar 2026 | 24Q, 26Q, 27Q, 27EQ | 31 May 2026 | 15 May 2026 |
Consequences of Non-Compliance
Penalties and Interest for TDS Non-Compliance
The Income Tax Act specifies clear penalties for TDS defaults. A Rs. 200 per day late fee sounds small — but on a quarterly return filed 90 days late, it reaches Rs. 18,000 for a single return. And that is before the discretionary penalty under Section 271H or the interest under Section 201(1A).
| Section | Default / Violation | Penalty / Charge | Important Note |
|---|---|---|---|
| 234E Mandatory |
Late filing of TDS return after due date | Rs. 200 per day until filing | Capped at the total TDS amount. Starts from the day after due date. No waiver possible. |
| 271H Discretionary |
Non-filing or filing incorrect information | Rs. 10,000 to Rs. 1,00,000 | On top of Section 234E. Applies when return is not filed within 1 year of due date. |
| 201(1A) Interest |
Late deposit of TDS after deduction | 1.5% per month from deduction to deposit date | Higher rate than delay in deduction (1%). Charged from date of deduction to date of deposit. |
| 201(1A) Interest |
Failure to deduct TDS at all | 1% per month from due deduction date to actual deduction date | Also makes the deductor a defaulter liable for the full tax amount on the payment. |
| 40(a)(ia) Disallowance |
TDS not deducted on payments to residents | 30% of expense disallowed | If TDS was not deducted on a business payment, 30% of the expense is disallowed in income tax computation — significantly increasing taxable income. |
Avoiding Notices
Common TDS Filing Errors That Trigger Notices
Most TDS notices arise from avoidable errors. Understanding these helps you prevent them before they become problems.
PAN Mismatches and Section 206AA
If a deductee's PAN is incorrect or missing, the deductor must apply a higher TDS rate of 20% under Section 206AA. Most payroll software does not enforce this automatically — so deductors often deposit insufficient TDS and face a shortfall notice. The deductee also cannot get Form 26AS credit for an incorrectly reported PAN. We verify every PAN against the Income Tax database before filing.
Section 206AB – Higher TDS for Specified Persons
Section 206AB requires deductors to check whether the payee has filed their last two ITRs. If not, a higher TDS rate applies — twice the normal rate or 5%, whichever is higher. Deductors must check the Compliance Check Facility on the IT portal before making payments. Failure to check and apply the correct rate results in both short deduction and a potential notice.
Challan and Return Data Mismatches
The TDS return must match the challans deposited exactly. A mismatch in challan BSR code, date, amount, or serial number causes the return to be rejected. The challan must also be deposited before the return is filed. We reconcile all challan data against the return before submission — our clients face zero challan mismatch errors.
Our Services
Our TDS Return Filing Services
We provide a complete TDS management service — from deduction calculation to return filing and notice handling.
- TDS deduction calculation: We compute the correct TDS rate for each payment type, deductee, and applicable section — including 206AA and 206AB checks.
- Form 24Q filing: Quarterly salary TDS returns including the Q4 annual salary detail and Form 16 generation for employees.
- Form 26Q filing: TDS on professional fees, rent, contractor, commission, interest, and all other resident payments.
- Form 27Q filing: TDS on payments to non-residents and foreign companies.
- Form 26QB and 26QC: TDS on property and TDS on rent — special one-time transactions filed separately.
- PAN and Section 206AB verification: We check every deductee against the IT portal before every filing cycle.
- Challan reconciliation: We match every challan to the corresponding TDS return entry before submission — zero mismatch errors.
- Correction returns: We file corrections for PAN errors, amount errors, and challan mismatches promptly to stop interest from accumulating.
- Lower Tax Deduction Certificate support: Applying for and processing Section 197 certificates for eligible recipients, and quoting the certificate number correctly in the return.
- Income Tax notice response: Handling TDS demand notices, short deduction notices, and mismatch notices — with full documentation and timely replies. See also our TDS and Tax Liability advisory service.
File Your TDS Returns on Time. Zero Errors. Zero Notices.
N D Savla & Associates manages the complete TDS compliance cycle — calculation, filing, challan reconciliation, corrections, and notice handling — so your obligations are never missed and your Form 26AS entries are always correct.
Need accurate, on-time TDS return filing?
From Form 24Q to Form 26QC — every form, every quarter, zero errors.
Get in TouchF.A.Q.
If TDS is deducted but not deposited by the 7th of the following month, interest at 1.5% per month applies from the deduction date. Additionally, the deductor becomes a defaulter under Section 201. This can result in a demand notice from the department. Moreover, the deductee may not get proper credit in their Form 26AS until the deposit is made. We provide dedicated TDS and Tax Liability advisory to help you avoid these situations entirely
Yes — correction returns are allowed. You can correct PAN errors, deductee details, challan information, or TDS amounts. However, corrections should be made promptly. The longer you wait, the more interest and penalty accumulates on the original error. For salary corrections, the corrected Form 24Q also regenerates the corrected Form 16 for the employee.
Section 206AB was introduced in 2021. It requires a higher TDS rate for ‘specified persons’ — taxpayers who have not filed ITRs for the past two years and whose TDS/TCS exceeded Rs. 50,000 in each year. The applicable rate is twice the normal TDS rate or 5%, whichever is higher. Therefore, every deductor must check the Compliance Check Facility on the IT portal before each payment. Failure to apply the correct rate makes the deductor liable for the shortfall. Our filing process includes a 206AB check for every deductee in Form 26Q.
Yes, TDS on rent depends on who is paying and the monthly amount. Businesses and individuals liable to audit must deduct TDS at 10% on rent above Rs. 2.4 lakh per year under Section 194I. Additionally, individual or HUF tenants not subject to audit but paying rent above Rs. 50,000 per month must deduct TDS at 5% under Section 194IB and file Form 26QC. For detailed guidance, see our TDS on Rent page.
A Lower Deduction Certificate under Section 197 allows a deductee to receive payments with TDS at a rate lower than the prescribed rate — or sometimes at nil. This is useful when the deductee’s overall tax liability is lower than what would be deducted at the standard rate. For example, exporters and trusts often apply for these certificates. However, the certificate must be obtained from the Assessing Officer before the payment is made. Once obtained, the deductor must apply the reduced rate and quote the certificate number in the TDS return. We handle the full application process — see our Lower Tax Deduction Certificate service.
