Everything Indian businesses need to know about quarterly TDS return filing — forms, due dates, sections, penalties, TRACES reconciliation and a CA-led filing process.
Tax Deducted at Source (TDS) is one of the most important and most penalised compliance areas in Indian taxation. Every company, LLP, firm, employer and contractor that crosses the prescribed thresholds must obtain a TAN, deduct tax on specified payments, deposit it monthly and file a quarterly TDS return. This 2026 guide walks you through everything — from the legal framework to the actual filing workflow.
TDS is a mechanism under the Income Tax Act, 1961 that requires the payer to deduct income tax at the source of payment and deposit it directly with the government on behalf of the payee. It accelerates revenue collection, broadens the tax base, and creates a digital audit trail through the deductee's Form 26AS and AIS.
| Form | Purpose | Common sections |
|---|---|---|
| 24Q | Salary TDS | 192 |
| 26Q | Non-salary domestic TDS | 194A, 194C, 194H, 194-I, 194J |
| 27Q | TDS on payments to non-residents | 195, 196B, 196C, 196D |
| 27EQ | Tax Collected at Source | 206C, 206C(1H) |
| Quarter | Period | TDS return due | TCS return due |
|---|---|---|---|
| Q1 | Apr–Jun | 31 July | 15 July |
| Q2 | Jul–Sep | 31 October | 15 October |
| Q3 | Oct–Dec | 31 January | 15 January |
| Q4 | Jan–Mar | 31 May | 15 May |
Tax deducted in any month (except March) must be deposited via ITNS 281 by the 7th of the following month. For March, the deposit due date is 30 April. Government deductors paying without challan must deposit on the same day.
Most defaults are preventable with a 10-minute pre-filing PAN and challan reconciliation. Taxpex runs this check on every return as standard.
Quarterly TDS data flows directly into the deductor's annual TDS reconciliation and the deductee's Form 26AS, AIS and pre-filled ITR. A clean quarterly history means refunds get processed faster and refund withholding under Section 245 becomes far less likely. Many of our ITR clients first come to us through TDS — see our companion guide on Income Tax Return Filing.
| Default | Section | Consequence |
|---|---|---|
| Late deduction | 201(1A) | Interest 1% per month |
| Late deposit | 201(1A) | Interest 1.5% per month |
| Late return filing | 234E | ₹200/day (capped at TDS) |
| Non-filing / wrong filing | 271H | ₹10,000 – ₹1,00,000 |
| Expense disallowance | 40(a)(ia) | 30% of expense added back |
Yes, if you have been allotted a TAN and have deducted TDS during the quarter — turnover is not the test. Even a single ₹50,000 rent payment can trigger 194-IB obligations.
Technically yes, using the RPU/FVU utility. Practically, the FVU validation, PAN reconciliation and TRACES default management are error-prone — most defaults we fix come from in-house filings without CA review.
Yes. One correction round per filing is included in our standard quarterly fee. Additional corrections and notice replies are charged on a flat per-event basis.
Senior contributor at Taxpex Consultancy. Reviewed by a practising Chartered Accountant. Published on 12 June 2026 · Updated on 12 June 2026.
TDS & TCS — done for you by Taxpex
Prefer a CA to handle this end to end? TDS & TCS Return Filing is our dedicated, fixed-fee service — this guide explains the process, that page gets it filed.
Go to TDS & TCS Return FilingTDS and TCS return due dates for FY 2026-27: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May, plus monthly deposit dates (7th of every month, 30 April for March), TCS 27EQ deadlines, Form 16/16A timelines and late-fee consequences.
12 June 2026 · 11 minTDS and TCS are often confused — here is a clear side-by-side comparison covering meaning, applicability, forms, due dates, rates and reporting.
12 June 2026 · 12 minA complete breakdown of every penalty, interest and disallowance triggered by late or incorrect TDS return filing — with real numbers and how to avoid them.
Absolute return ignores time; CAGR normalises the return to a per-year compounded rate — the standard measure for comparing multi-year returns.
via CAGR CalculatorYes if you complete 5 years of continuous service. Earlier withdrawal is taxable and may attract TDS.
via EPF CalculatorYes — monthly TDS, quarterly 24Q/26Q returns and Form 16 generation.
via Compliance ServicesForm 16 is for salary TDS (annual); Form 16A is for non-salary TDS (quarterly).
via TDS Return Filing