TDS Return: Meaning, Eligibility, Forms & Due Dates in India

A TDS Return is a quarterly statement that a deductor (the person or entity who deducts tax at source) must file with the Income Tax Department showing details of tax deducted at source (TDS) and tax deposited with the government for a given period. It ensures transparency in tax collection at the source and helps the deductee (recipient) claim credit of the deducted tax in their Form 26AS or Income Tax Return.

What is a TDS Return (Meaning)

TDS (Tax Deducted at Source) is a mechanism under the Income Tax Act where a portion of tax is deducted at the time of payment (salary, interest, rent, professional fees etc.) and remitted to the government by the payer. A TDS Return is the statement filed quarterly by the deductor to the tax department showing:

• Details of tax deducted
• Tax deposited to the government
• Deductee information (PAN, amount paid, TDS deducted)

This return allows the deducted tax to be reflected in the deductee’s records, helping them claim the credit while filing their Income Tax Return.

Who is Eligible / Required to File a TDS Return

You must file TDS Return if you’ve:

• Deducted tax at source under the Income Tax Act sections (e.g., on salary, interest, rent, professional fees, contractor payments, etc.)
• Deposited TDS with the government within the due date
• A valid TAN (Tax Deduction and Collection Account Number) without TAN, you cannot file TDS returns
• Deducted tax on payments to non-residents or residents as per applicable provisions

Generally, any taxpayer or entity that deducts TDS in a quarter and deposits it needs to file the corresponding TDS return.

Forms used in TDS Return Filing

Different TDS return forms are used depending on the nature of payment:

Form

Purpose

24Q

TDS on salary payments

26Q

TDS on payments other than salary to residents (professional fees, rent, interest etc.)

27Q

TDS on payments to non-residents (including foreign companies)

27EQ

TCS (Tax Collected at Source) return (separate but often filed concurrently)

These forms are prepared using tools (like RPU/FVU) and uploaded quarterly on the Income Tax e-Filing portal.

Similar read: Types of ITR Forms and Eligibility

TDS Return Due Dates (Quarterly)

TDS returns in India are filed every quarter, and the typical due dates are:

Quarter

Period

Due Date (Filing)

Q1

April – June

31st July

Q2

July – September

31st October

Q3

October – December

31st January

Q4

January – March

31st May (next year)

Note: These dates apply to forms like 24Q, 26Q and 27Q. Payment of TDS itself (deposit to government) has separate monthly due dates (generally 7th of next month; for March it’s usually 30th/31st).

Steps to File TDS Return (Overview)

1. Prepare Details: Collect TDS deduction details, PAN of deductees, payment and challan info.
2. Download Utilities: Use NSDL’s Return Preparation Utility (RPU) and File Validation Utility (FVU) for TDS forms.
3. Prepare Return File: Enter TDS and challan details form-wise (24Q, 26Q, 27Q).
4. Validate: Run FVU to check for errors.
5. Upload Online: Log in to the Income Tax Department e-Filing portal and upload the XML file.
6. Acknowledgement: Save the acknowledgement receipt/token number for records.

Consequences of late filing

• Late Fee under Section 234E: A fee of Rs. 200 per day can be charged for delayed filing until it is furnished.
• Mismatch in Form 26AS: Deductees may not get correct TDS credit if returns are not filed on time.
• Potential Notices: The department may send notices for non-filing or incorrect filing, requiring compliance.

Revised TDS Return

If errors are found after submission, such as incorrect PAN, challan details or amounts a revised TDS return can be filed before the end of the relevant assessment year (generally 31 March after the year in which TDS was deducted) to correct details.

Why TDS returns mMatter

Filing TDS returns:

• Helps credit TDS to the deductee’s Form 26AS, preventing mismatches at ITR time.
• Ensures legal compliance and avoids penalties.
• Supports transparent tax collection at source.

Conclusion

A TDS Return is a quarterly compliance requirement for anyone who deducts tax at source under the Income Tax Act. It involves filing specific forms (like 24Q, 26Q and 27Q), following due dates (generally by 31st July, 31st October, 31st January and 31st May) and reporting correct deduction and deposit details. Timely and accurate filing helps ensure that tax credits reflect correctly for deductees and keeps the deductor compliant with law.