If you pay salaries, rent, contractor fees or professional charges above the thresholds, you are required to deduct TDS, deposit it, and file quarterly returns. Miss a step and the penalties add up fast — a daily late fee, interest, and disallowed expenses. This guide sets out which form applies, the deposit and filing deadlines, the certificates you must issue, and the penalties for slipping.
- Form 24Q is for salary TDS, 26Q for other domestic payments, 27Q for non-residents.
- TDS must be deposited by the 7th of the next month; returns are quarterly.
- Late filing attracts Rs 200/day under section 234E, capped at the TDS amount.
- You must issue Form 16 / 16A to deductees after filing.
Which form applies
- Form 24Q: TDS on salaries.
- Form 26Q: TDS on all other domestic payments (rent, contractor, professional fees, commission).
- Form 27Q: TDS on payments to non-residents.
- Form 27EQ: TCS (tax collected at source) returns.
The deadlines at a glance
| Quarter | Period | Return due date |
|---|---|---|
| Q1 | Apr–Jun | 31 July |
| Q2 | Jul–Sep | 31 October |
| Q3 | Oct–Dec | 31 January |
| Q4 | Jan–Mar | 31 May |
TDS deducted must be deposited by the 7th of the following month (for March, by 30 April). After filing each quarterly return, Form 16 (salary) or 16A (non-salary) certificates go to the deductees so they can claim credit.
Consequences of not deducting or depositing
- Disallowance of expense — 30% of the payment can be disallowed if TDS is not deducted or deposited.
- Interest under section 201 for late deduction or deposit.
- Penalty and, in serious cases, prosecution for failure to deposit deducted tax.
“TDS is a rhythm: deduct on payment, deposit by the 7th, file each quarter. Keep the beat and penalties never start.”
Frequently asked questions
Do I need a TAN to deduct TDS?
Yes. A Tax Deduction Account Number (TAN) is mandatory for deducting and depositing TDS — see our TAN vs PAN guide.
What if I deducted TDS but missed the return?
File it as soon as possible — the Rs 200/day fee accrues until you do. If there were errors, you may also need a correction return.
Can I revise a TDS return after filing?
Yes, through a correction return to fix PAN errors, challan mismatches or missed deductees. See our TDS correction guide.
Our TDS return filing service handles deduction workings, deposits and quarterly returns. See all income tax services.
