TDS Return Filing Services
Expert TDS compliance and return filing services for individuals and businesses
What is TDS Return Filing?
A TDS return is a quarterly statement that summarizes all Tax Deducted at Source (TDS) transactions for a specific period. A TDS return includes key information such as:
- •The PAN of both the deductor and the deductee.
- •Details of the TDS paid to the government.
- •Challan information for the tax deposited.
All information provided in the TDS return is also reflected in the payee's Form 26AS. Filing a TDS return is mandatory for all individuals and entities who are required to deduct tax under the provisions of the Income Tax Act.
What is Revised TDS Return?
A revised TDS return is a corrected statement submitted to fix errors in an original return. Filing a revised return is necessary to correct inaccuracies such as:
- •Incorrect PAN details.
- •Errors in deductee information.
- •Wrong TDS amount or challan details.
This revised submission ensures that accurate data is recorded with the Income Tax Department, helping deductees claim their TDS credit smoothly. Inaccurate TDS returns can result in penalties, delays, or tax disputes. Promptly filing a revised return guarantees compliance and prevents avoidable fines. This return can be filed online via the TRACES portal once corrections are completed.
Purpose of Filing TDS Return
The purpose of filing a TDS return is multifaceted, serving both the Income Tax Department (Government) and the taxpayers (deductors and deductees):
For the Government:
- •Ensuring Timely Tax Collection: TDS is a mechanism for collecting income tax at the very source of income generation (e.g., salary, rent, professional fees). Filing TDS returns ensures that the tax deducted by the deductor is promptly deposited with the government, providing a consistent and stable revenue stream throughout the year.
- •Preventing Tax Evasion: By requiring deductors to withhold tax at the source and report these deductions, TDS helps expand the tax net and makes it more difficult for recipients of income to evade tax liability. The detailed information in the TDS returns helps the Income Tax Department track income streams.
- •Facilitating Tax Administration: TDS returns provide the Income Tax Department with crucial data about various transactions, aiding in reconciliation, auditing, and overall tax administration. This information is reflected in the deductee's Form 26AS, allowing the department to verify reported income and TDS credits.
For Deductors (those deducting tax):
- •Compliance with Legal Obligations: Filing TDS returns is a mandatory legal requirement under the Income Tax Act, 1961. Timely and accurate filing ensures compliance and avoids penalties, interest, and even prosecution for non-compliance.
- •Maintaining Records and Transparency: TDS returns serve as official documentation of tax deductions and deposits. This helps deductors maintain clear financial records and demonstrates transparency in their tax practices.
- •Avoiding Penalties: Late or incorrect filing of TDS returns can lead to significant penalties and interest charges. Prompt filing ensures that deductors avoid these financial repercussions.
For Deductees (those from whom tax is deducted):
- •Claiming Tax Credit: The TDS deducted from a deductee's income is a pre-payment of their tax liability. The TDS return filed by the deductor ensures that this deducted amount is accurately reflected in the deductor's tax records (like Form 26AS), allowing them to claim credit for it when filing their own Income Tax Return (ITR). This reduces their final tax payable or enables them to claim a refund if excess TDS was deducted.
- •Verification of Income: The details in the TDS return and Form 26AS provide deductees with a record of their income on which tax has been deducted, aiding in the accurate reporting of income in their ITR.
TDS Changes from 1st April, 2025
The government has revised the threshold limits for TDS deduction under various sections, effective from April 1st, 2025. The relaxed threshold limits are as follows:
| Section | Till 31st March, 2025 | From 1st April, 2025 |
|---|---|---|
| 193 - Interest on securities | NIL | 10,000 |
| 194A - Interest other than Interest on securities | Bank/Co-op/Post Office: • Senior citizens: ₹50,000 • Others: ₹40,000 Others: ₹5,000 | Bank/Co-op/Post Office: • Senior citizens: ₹1,00,000 • Others: ₹50,000 Others: ₹10,000 |
| 194 – Dividend, for an individual shareholder | ₹5,000 | ₹10,000 |
| 194K - Income in respect of units of a mutual fund | ₹5,000 | ₹10,000 |
| 194B - Winnings from lottery, crossword puzzle, etc. | Aggregate exceeding ₹10,000/- during FY | ₹10,000/- per transaction |
| 194BB - Winnings from a horse race | Aggregate exceeding ₹10,000/- during FY | ₹10,000/- per transaction |
| 194D - Insurance commission | ₹15,000 | ₹20,000 |
| 194G - Commission, prize on lottery tickets | ₹15,000 | ₹20,000 |
| 194H - Commission or brokerage | ₹15,000 | ₹20,000 |
| 194-I - Rent | ₹2,40,000 per FY | ₹50,000 per month |
| 194J - Fee for professional or technical services | ₹30,000 | ₹50,000 |
| 194LA - Enhanced compensation | ₹2,50,000 | ₹5,00,000 |
Note: These changes were proposed in the Finance Bill, 2025, and are subject to final legislation. Please consult the official Income Tax portal for the latest effective rates.
TDS Rate Chart – Applicable for Residents
Below are the applicable TDS rates when payment is made to a resident individual or entity:
| Section | Nature of Transaction | Threshold Limit (₹) | TDS Rate |
|---|---|---|---|
| 192 | Salary Payment | Basic exemption limit | As per IT Slab |
| 192A | Premature EPF withdrawal | 50,000 | With PAN: 10%, Without: 20% |
| 193 | Interest on securities | 10,000 | 10% |
| 194 | Dividend Payment | 10,000 | 10% |
| 194A | Interest (bank/post office) | Senior: 1,00,000; Others: 50,000 | 10% |
| 194B | Lottery, card games | 10,000 per transaction | 30% |
| 194BA | Online Gaming | No threshold | 30% |
| 194BB | Horse Races | 10,000 per transaction | 30% |
| 194C | Contract Payment | Single: 30,000; Aggregate: 1,00,000 | 1% / 2% |
| 194D | Insurance Commission | 20,000 | 5% |
| 194DA | Life Insurance payout | 1,00,000 | 5% |
| 194EE | NSS Withdrawal | 2,500 | 10% |
| 194G | Lottery ticket commission | 15,000 | 5% |
| 194H | Commission or Brokerage | 15,000 | 5% |
| 194-I | Rent | 2,40,000 p.a. | 2% (Plant) / 10% (Land/Building) |
| 194-IA | Property Transfer | 50 lakhs | 1% |
| 194-IB | Rent by Individual/HUF | 50,000 per month | 5% |
| 194J | Professional/Technical Services | 50,000 | 10% / 2% |
| 194K | Mutual Fund income | 10,000 | 10% |
| 194M | Payments by Individual/HUF | 50 lakhs | 5% |
| 194O | E-commerce operators | 5 lakhs | 0.10% |
| 194Q | Purchase of Goods | 50 lakhs | 0.10% |
| 194S | Virtual Digital Assets | 10,000 - 50,000 | 1% |
Different TDS Return Forms/Certificates
In India, TDS is a system where a portion of income is deducted as tax at the very source of payment. To facilitate this, the Income Tax Department prescribes various forms for filing TDS returns and for issuing TDS certificates.
FORM 24Q
Form 24Q is a quarterly TDS return filed for salaries paid to resident employees under Section 192 of the Income Tax Act. Employers must provide details like the salary paid, the TDS deducted, and information about both the deductor and the deductee. It comprises two annexures—Annexure I with deductor/deductee/challan info, and Annexure II with employee salary details. Accurate and timely filing of Form 24Q is necessary for issuing Form 16 to employees and helps avoid penalties for non-compliance.
FORM 26Q
Form 26Q is a quarterly TDS return filed for payments made to resident Indians other than salaries. These payments may include interest, commission, professional fees, and rent. The form captures PAN of the deductee, amount paid, TDS details, and challan info. Proper filing of Form 26Q ensures that the deductees get TDS credit in their ITR. Incorrect or delayed filing may lead to penalties and interest.
FORM 27Q
Form 27Q is used for quarterly TDS filing on payments made to non-resident Indians and foreign entities. These payments include interest, dividends, royalties, and technical service fees. The form requires PAN, payment amount, TDS deducted, and challan details. Filing Form 27Q accurately ensures legal compliance, prevents penalties, and allows non-resident deductees to claim TDS credit.
FORM 26QB
Form 26QB is a challan-cum-statement used to report TDS on immovable property purchases under Section 194-IA. When the property value exceeds ₹50 lakhs, the buyer must deduct 1% TDS and file this form within 30 days of the month when TDS is deducted. Timely filing helps avoid penalties and ensures the seller can claim TDS credit. It also facilitates the generation of Form 16B for the seller.
FORM 26QC
Form 26QC is a challan-cum-statement for TDS on rent exceeding ₹50,000 per month, filed under Section 194-IB. Individuals or HUFs not under tax audit must deduct TDS at 5% and file the form within 30 days from the month-end of deduction. Filing on time helps avoid penalties and ensures landlords receive credit for TDS through Form 16C.
FORM 27EQ
Form 27EQ is used for filing quarterly TCS (Tax Collected at Source) returns as per Section 206C of the Income Tax Act. It applies to sellers who collect tax on specific goods/services. The form must include PAN, TCS amount, and challan details. Proper filing ensures compliance, helps avoid penalties, and allows collectees to claim TCS credit in their tax returns.
How to Download TDS Return Forms?
TDS return forms are available for download on the official TIN-NSDL website. To download them, follow these steps:
Visit the official TIN-NSDL website
Click on the "Downloads" option in the top menu
Choose "e-TDS/e-TCS" from the dropdown
Scroll to the "Quarterly Returns" section
Click on "Regular"
A list of all TDS return forms will appear. Click on the desired form to download its PDF version.
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