Quick Answer: TDS returns are filed quarterly. Use Form 24Q for TDS on salaries and Form 26Q for TDS on non-salary payments to residents. The due dates are 31 July, 31 October, 31 January and 31 May for Q1 to Q4. Filing late attracts a fee of Rs 200 per day under Section 234E (capped at the TDS amount), plus a possible penalty of Rs 10,000 to Rs 1,00,000 under Section 271H and interest under Section 201(1A).
If you deduct TDS on salaries, contractor payments, rent, professional fees or interest, deducting the tax is only half the job. You must also deposit it with the government and file a quarterly TDS return that reports every deduction, deductee and challan. Miss the return deadline and the late fee starts adding up automatically at Rs 200 a day, whether the delay is one day or one hundred.
This guide breaks down exactly which TDS return form to file, the due dates for FY 2025-26, and precisely how the late fee, penalty and interest are calculated so you can avoid every one of them.
What is a TDS Return?
A TDS return is a quarterly statement that every person or business deducting tax at source (a "deductor") must submit to the Income Tax Department. It contains the details of the TDS deducted, the challans through which it was deposited, and the PAN of each person from whose payment tax was deducted (the "deductee").
To file a TDS return you first need a TAN (Tax Deduction and Collection Account Number) quoting your PAN is not enough. If you do not have one yet, read our guide on the Tax Deduction and Collection Account Number (TAN) before you begin.
TDS Return Forms: 24Q, 26Q, 27Q and 27EQ
The form you file depends on the nature of the payment and who received it. Using the wrong form is one of the most common reasons returns get rejected.
| Form | Used For | Frequency |
|---|---|---|
| Form 24Q | TDS on salaries (Section 192) | Quarterly |
| Form 26Q | TDS on all non-salary payments to residents (contractors, professional fees, rent, interest, commission etc.) | Quarterly |
| Form 27Q | TDS on payments to non-residents / NRIs / foreign entities | Quarterly |
| Form 27EQ | TCS (Tax Collected at Source) statement | Quarterly |
For most small businesses in India, the two forms that matter every quarter are 24Q (for staff salaries) and 26Q (for vendor, contractor and professional payments). If you deduct TDS under newer provisions such as Section 194M on payments to contractors and professionals or Section 194O for e-commerce operators, those deductions are also reported through these quarterly returns.
TDS Return Due Dates for FY 2025-26
TDS returns are due one month after the end of each quarter with one exception: the last quarter (Jan-Mar) gets an extra month.
| Quarter | Period | TDS Return Due Date |
|---|---|---|
| Q1 | 1 April - 30 June | 31 July 2025 |
| Q2 | 1 July - 30 September | 31 October 2025 |
| Q3 | 1 October - 31 December | 31 January 2026 |
| Q4 | 1 January - 31 March | 31 May 2026 |
Don't confuse this with the TDS deposit date
There are two separate deadlines, and mixing them up is a costly mistake:
- Depositing TDS: by the 7th of the following month (for tax deducted in March, the deposit deadline is 30 April).
- Filing the TDS return: quarterly, on the dates in the table above.
You can deposit the tax on time and still be penalised for filing the return late so both dates need to be on your calendar.
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Late Fee for Late Filing of TDS Return (Section 234E)
This is the charge that catches most deductors off guard. Under Section 234E, if you file your TDS return after the due date, you must pay a late fee of:
Rs 200 for every day the return is delayed, from the due date until the date of filing subject to a maximum of the total TDS amount of that return.
Two things make this fee painful:
- It is mandatory and automatic the return will not be accepted until the 234E fee is paid.
- It cannot be waived and there is no discretion involved; the system calculates it to the day.
Example calculation
Suppose your Q1 return (due 31 July) with total TDS of Rs 40,000 is filed 20 days late:
- Late fee = Rs 200 × 20 days = Rs 4,000
- Since Rs 4,000 is less than the total TDS of Rs 40,000, the full Rs 4,000 is payable.
If the same return were delayed by 250 days, the fee would work out to Rs 50,000 but would be capped at Rs 40,000 (the TDS amount).
Penalty under Section 271H
On top of the 234E late fee, the Assessing Officer can levy a separate penalty under Section 271H ranging from Rs 10,000 to Rs 1,00,000 for:
- Not filing the TDS return, or
- Filing an incorrect return (wrong PAN, wrong challan details, wrong deduction amounts).
Good news: the 271H penalty is not levied if you file the return within one year of the due date, provided you have already paid the TDS, the late fee and the interest. This is a strong reason to file even a delayed return as soon as possible rather than leaving it open.
Interest for Late Deduction or Late Deposit (Section 201(1A))
Interest applies when the tax itself is deducted or deposited late (separate from the return filing fee):
| Default | Interest Rate | Period |
|---|---|---|
| TDS not deducted (or deducted late) | 1% per month | From date tax was deductible to date it is actually deducted |
| TDS deducted but deposited late | 1.5% per month | From date of deduction to date of deposit |
Part of a month is treated as a full month, so even a one-day delay spilling into a new month is charged for the whole month. For related interest provisions on tax defaults, see our note on interest under Section 234B.
After Filing: Issuing TDS Certificates
Once your quarterly return is processed, you must issue TDS certificates to your deductees so they can claim credit in their own returns:
- Form 16 for salary TDS issued annually by 15 June.
- Form 16A for non-salary TDS issued quarterly, within 15 days of the return due date. Learn more about Form 16A generation.
Unsure how these two certificates differ? Our guide on Form 16 vs Form 16A explains it in plain language.
Frequently Asked Questions
1. Is filing a TDS return mandatory if I have deducted tax?
Yes. Every deductor holding a TAN must file the quarterly return reporting all deductions, even if only one deduction was made in the quarter. Depositing the tax alone is not enough.
2. Can I file a nil TDS return?
There is no separate nil return form. If no TDS was deducted in a quarter, filing is generally not required, though many deductors submit a "nil declaration" on the TRACES portal to keep their compliance record clean and avoid unnecessary notices.
3. Can the Rs 200 per day late fee under 234E be waived?
No. The Section 234E fee is mandatory and is collected before the return is accepted. It cannot be reduced or waived by the Assessing Officer.
4. What is the difference between Form 24Q and Form 26Q?
Form 24Q reports TDS deducted on salaries, while Form 26Q reports TDS on all other payments to residents such as contractor payments, professional fees, rent, commission and interest.
5. What if I receive a TDS default notice?
TDS defaults (short deduction, short payment, late fee or interest) often come as intimations from the department. Do not ignore them get expert help to reconcile and respond. See our complete guide to responding to an income tax notice.
Conclusion
TDS compliance is unforgiving of delays. Remember the essentials: file Form 24Q for salaries and Form 26Q for non-salary payments, hit the quarterly deadlines of 31 July, 31 October, 31 January and 31 May, and deposit the tax by the 7th of the next month. Miss the return date and Rs 200 a day stacks up automatically, with a possible Rs 10,000-Rs 1,00,000 penalty and monthly interest on top. The safest approach is to treat every quarter-end as a hard deadline and, if you handle multiple deductees, to hand the reconciliation and filing to a professional.
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Reviewed by CA Pritam Sharma Chartered Accountant, EasyTax. This article is for general information and does not constitute professional tax advice. Tax due dates and rules may be revised by the CBDT; always confirm the latest applicable dates before filing.
