Last updated: 14 Oct 2026

Virtual Auditor

TDS Return Filing

Last updated: 14 Oct 2026

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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.

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

Step-by-Step Process

    Step 1

    Collect TDS deduction details for quarter

      Step 2

      Prepare return in RPU/third-party software

        Step 3

        Generate FVU file

          Step 4

          Upload on TRACES portal with DSC

            Step 5

            Issue Form 16/16A to deductees

            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.

            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:

            TAN and PAN of the deductor, challan details (CIN) for the tax deposited, PAN and particulars of every deductee, the deduction register or ledger for the quarter (salary, contractor, professional, rent, interest and other payments), lower-deduction certificates under section 197 where applicable, the previous quarter's filed statement and token number for corrections, and the DSC or EVC details of the authorised signatory.

            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.

            What has changed in the law — reviewed October 2026

            • Income-tax Act, 2025: assented to on 21 August 2025 and in force from 1 April 2026, it replaces the Income-tax Act, 1961 for tax year 2026-27 onward, and the Income-tax Rules, 2026 (notified 20 March 2026) replace the 1962 Rules. Section and rule numbers on this page are those of the 1961 Act and 1962 Rules, which continue to govern assessments, appeals and pending proceedings for assessment years up to 2026-27; for tax year 2026-27 onward the corresponding provisions of the 2025 Act apply, and our engagement letters quote both.

            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 (₹5,999 (professional fees only; govt fees and stamp duty extra)-₹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: ₹5,999 (professional fees only; govt fees and stamp duty extra) 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.
            What must be deducted, reported or corrected for these payments?
            It depends on the payment and the payee: salary, contractor payments, professional and technical fees, rent, purchase of goods, purchase of immovable property, and payments to non-residents each have their own rate and threshold (sections 192 to 195 of the 1961 Act; section 393 of the Income-tax Act, 2025 from 1 April 2026). For most payments, deduct when the amount is credited or paid, whichever is earlier; deposit the tax by the due date, file the quarterly statement (24Q for salary, 26Q for residents, 27Q for non-residents), and issue Form 16 or 16A. Short deduction, wrong PAN or late filing is corrected through a correction statement on TRACES. We map your payments, check rates and PANs, and file the returns and corrections.
            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.

            Related Services

            TDS Return Filing Service BangaloreTDS Return Filing Service ChennaiTDS Return Filing Service MumbaiGST Return FilingFLA Return Filing — RBI ComplianceGST Return Filing Service BangaloreGST Return Filing Service ChennaiGST Return Filing Service Mumbai

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