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TDS Return Filing

TDS (Tax Deducted at Source) return filing is mandatory for all deductors — companies, firms, and individuals liable to deduct TDS on payments like salary, rent, professional fees, interest, and contractor payments. Quarterly returns (Form 24Q for salary, 26Q for non-salary, 27Q for NRI payments, 27EQ for TCS) must be filed on TRACES within prescribed due dates. Virtual Auditor handles the complete TDS compliance cycle: computation, deposit, return filing, Form 16/16A generation, and correction statements. Quick Answer: TDS Return Filing — TDS return filing by CA firm. Quarterly returns (24Q, 26Q, 27Q, 27EQ). TDS corrections. Form 16/16A generation. TRACES compliance. Virtual Auditor.

TDS Return Filing is a service offered by Virtual Auditor, an AI-powered CA and IBBI Registered Valuer firm (IBBI/RV/03/2019/12333) led by CA V. Viswanathan (FCA, ACS, CFE, IBBI RV), specialising in income tax appeal representation before CIT(A) and ITAT, from offices in Chennai, Bangalore, and Mumbai since 2012.

Source: Income Tax Act 1961, IT Rules 1962, CBDT Circulars, Finance Act Official References: Income Tax Portal ↗ · IT Act Sections ↗

Regulatory Framework

Regulatory basis: Income Tax Act, 1961. Income Tax Rules, 1962. Finance Act (as amended). CBDT Circulars and Notifications.

TDS Return Forms

FormType of PaymentDue Date
24QSalary TDS31st of month after quarter
26QNon-salary TDS (rent, professional, interest)31st of month after quarter
27QTDS on NRI payments31st of month after quarter
26QBTDS on property purchase (1%)Within 30 days

People Also Ask

When is income tax return due in India?

Non-audit cases: July 31. Audit cases (companies, firms requiring audit): October 31. Transfer pricing: November 30. Belated returns: December 31 with ₹5,000 late fee.

What is TDS and who must deduct it?

Tax Deducted at Source — every person making specified payments (salary, rent, professional fees, interest, contractor payments) must deduct TDS at prescribed rates and deposit with the government.

How Virtual Auditor Delivers This Differently

Our assessment order parser extracts each addition with section reference, amount, and AO reasoning. It maps additions against our case law database (CIT(A)/ITAT/HC/SC precedents) and computes the economics: tax + interest + penalty saved per ground vs. probability of success.

Need Help With This?

Free 30-minute consultation with CA V. Viswanathan, FCA, ACS, CFE, IBBI RV. No obligation.

Latest Regulatory Updates (FY 2025-26)

This page has been updated to reflect changes introduced in Budget 2025, recent notifications from CBDT, CBIC, MCA, SEBI, and RBI, and evolving compliance requirements for FY 2025-26. Virtual Auditor continuously monitors regulatory developments to ensure all advice and filings are current and compliant with the latest provisions.

Recent Engagement — How We Helped

Context: a salaried professional who received a demand notice under Section 143(1) for Rs 3.2 lakhs due to mismatch between Form 26AS and ITR.

Challenge: The assessee had claimed TDS credit for Rs 4.8 lakhs but Form 26AS showed only Rs 1.6 lakhs. The shortfall resulted in an automatic demand with interest under Section 234B/C. The individual was confused and worried about potential prosecution.

Our approach: We obtained TDS certificates from the employer and verified them against Form 26AS. The gap was caused by the employer filing a revised TDS return (26Q) that was not yet reflected in 26AS. We filed an online rectification request under Section 154 with supporting TDS certificates and the employer's revised 26Q acknowledgment.

Outcome: The demand was fully withdrawn within 45 days of rectification filing. No interest or penalty applied. We also helped the assessee set up a system to verify 26AS reconciliation before filing future returns.

This engagement illustrates Virtual Auditor's approach to tds return filing — combining regulatory expertise with practical execution to deliver results within the client's timeline.

When Is TDS Return Filing Not Required?

TDS return filing may not be required when: (a) no TDS has been deducted during the quarter (but NIL return filing is still recommended), (b) the entity is not required to deduct TDS (individual/HUF not subject to audit making payments below threshold), (c) the payments are exempt from TDS under applicable sections or lower deduction certificates (Section 197), or (d) the entity has been dissolved with no pending deduction obligations. Every entity with a TAN that has deducted TDS must file quarterly returns — non-filing attracts Rs 200/day penalty under Section 234E.

If you are unsure whether your situation requires tds return filing, contact us for a free preliminary assessment. We will advise you honestly — including telling you if you do not need our services.

Documents Required

The following documents are needed to initiate the tds return filing process:

PAN card of the assessee, Aadhaar card (linked with PAN), Form 16/16A from all deductors, bank statements for all accounts held during the year, investment proofs for deductions under Chapter VI-A, capital gains computation with purchase/sale documents, Form 26AS and Annual Information Statement (AIS) download, and TDS certificates for any payments received.

We provide a personalised document checklist after the initial consultation, tailored to your specific entity type and situation. Documents can be shared securely via email or our client portal.

What You Receive

Upon completion of the tds return filing engagement, you will receive: Completed tax return/form filing acknowledgment, detailed computation of tax liability with supporting schedules, reconciliation statements (26AS, AIS/TIS), advisory note on tax-saving opportunities identified, and a compliance calendar for future filing due dates.

All deliverables are reviewed by CA V. Viswanathan (FCA, ACS, CFE, IBBI RV) before release to ensure accuracy and regulatory compliance.

Frequently Asked Questions

When are TDS returns due?

Q1 (Apr-Jun): July 31. Q2 (Jul-Sep): October 31. Q3 (Oct-Dec): January 31. Q4 (Jan-Mar): May 31. Late filing: fee of ₹200/day under Section 234E.

What happens if TDS is deducted but return not filed?

The deductee (payee) cannot claim TDS credit in their ITR until the return is filed and processed by TRACES. Late filing also attracts penalty under Section 271H (₹10,000-₹1,00,000).

Do you handle TDS corrections?

Yes. Correction statements for errors in PAN, amount, section code, or challan details. Also handle demand resolution arising from TDS mismatches on TRACES.

What TDS returns need to be filed quarterly?

Form 24Q: salary TDS. Form 26Q: non-salary TDS (rent, professional fees, interest, contractor). Form 27Q: TDS on payments to non-residents. Form 27EQ: TCS (Tax Collected at Source). Due: July 31, Oct 31, Jan 31, May 31.

What is the penalty for late TDS return filing?

Late filing fee: ₹200/day under Section 234E until the return is filed. Maximum: total TDS amount. Penalty under Section 271H: ₹10,000 to ₹1 lakh for delayed filing beyond 1 year.

What happens if TDS is not deducted?

Disallowance of 30% of expenditure under Section 40(a)(ia) for business payments. For non-business: no deduction allowed. Interest under Section 201(1A): 1% per month from date of deductibility to date of deduction, 1.5% from deduction to deposit.

How to file TDS return online?

Prepare return using TRACES RPU or third-party software (Genius, Saral, ClearTDS). Generate FVU file. Upload on TRACES portal with DSC. Verify with provisional receipt number. Correct errors through correction returns (C1-C9).

What is the TDS rate for professional fees?

Section 194J: 10% for professional/technical fees (₹30,000 threshold). Section 194C: 1% for individual/HUF contractors, 2% for others (₹30,000 single payment / ₹1 lakh aggregate threshold). Section 194H: 5% for commission.

Step-by-Step Process

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Step 2

Prepare return in RPU/third-party software

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Step 3

Generate FVU file

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Step 4

Upload on TRACES portal with DSC

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Step 5

Issue Form 16/16A to deductees

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