TDS (Tax Deducted at Source) is implemented by the government of India to collect tax at the source. A percentage of the payment is deducted by the payee at the source before making the final payment to the receiver

What are the types of TDS returns?

The primary types of TDS are the following: 24Q for salary payment 26Q for non-salary payments to residents 27Q for non-salary payments to non-residents Form 27EQ is filed quarterly for TCS payments. It contains information on tax collected by sellers while receiving payments from buyers on specific goods

What is the penalty for late filing of TDS?

As per Section 234E of the Income Tax Act, the penalty for failing to file the TDS return on or before the due date is ₹200 per day until the penalty amount equals the total TDS liability.

What are the steps to file TDS return?

Follow the steps below to file your TDS return. Login to the e-filing portal using your TAN Navigate to Income Tax Form and ‘Click’ on File IncomeTax Forms Navigate to the file you want to file Click on ‘File Now’ You’ll be redirected to the page where you need to upload all details for TDS filing Enter the validating OTP sent to your mobile number to complete the filing process

Who must submit e-TDS/TCS statements?

Every deductor and collector who deducts tax or collects tax at source shall file a TDS return electronically. This involves the employers, firms, partnership firms, banks, and individuals. According to the regulations of income tax, an e-filing is required after a PAN is assigned and tax is deducted or collected. Electronic statements to which you file a TDS return assist in the standardisation of data, accelerate processing speed and minimise manual errors in reporting systems.

How to know whether my TDS return has been processed?

After you file the TDS return, the processing status can be checked on the TRACES portal using the acknowledgement number. Once processed, the details are reflected in Form 26 A of the deductee. Any mismatch or short deduction may also appear during processing. Tracking status helps confirm whether your TDS submission was accepted or requires correction. Regular checks prevent prolonged discrepancies and ensure records remain updated.

What happens once I submit my TDS return?

Once you file a TDS return, the Income Tax Department validates the information. If accepted, the deducted tax is credited to the deductee’s account. If errors exist, an intimation highlights mismatches or defaults. Timely correction through revised returns is possible. Completing the TDS return process ensures tax credit accuracy, reduces notices, and maintains compliance continuity for future filings.

How to File TDS Return: Online & Offline Process

The tax compliance may seem complicated until the point when it becomes a habit. One of such responsibilities is the ability to file a TDS return in the correct manner and at the right time. In the case of a deducted tax at the source, such deduction is to be reported. The filing of the TDS return links the deductor, the government, and the taxpayer by enabling proper records. Failure to meet a deadline or inaccurate information can establish follow-ups and discrepancies. Understanding how to file TDS returns can eliminate errors and keep tax records in line with the actual payments.

Key Takeaways

TDS returns document tax deducted, deposited, and reported.

TAN registration and RPU–FVU validation are mandatory for filing.

Returns can be filed online via EVC or DSC, or offline through NSDL.

Timely, accurate filing avoids penalties and ensures correct tax credit.

What is a TDS Return?

A TDS return is a quarterly statement which is filed by the deductor to the Income Tax Department after deduction of tax and deposit of the same. In filing TDS return, you reveal information like the amount paid, tax deducted, PAN of the deductee and challan details.

This return assists the government in monitoring the collections of tax and allows taxpayers to view the credit TDS in their Form 26AS. Understanding how to file TDS return in the proper way will minimise the disputes, facilitate the easy refunding process and streamline income reporting throughout records.

Also Read: How to Calculate TDS on Salary?

Steps To File TDS Return Online

Below are the steps to file TDS return online:

Step 1 - Gather all the prerequisites

If you are paying TDS, you need to have a registered TAN. This needs to be registered for e-filing

Ensure that the TDS return being filed meets the criteria set for this process.

There are two methods of validation, and depending on which one you choose, you will need to ensure one of the following two options:

Option 1: Linked details for EVC (Electronic verification):The principal contact's bank account (or demat account) needs to be provided. Alternatively, the principal contact's PAN number needs to be linked to their Aadhaar. You can update PAN details on the income tax department's website itself.

Option 2: Valid digital signature for DSC (digital signature). A valid DSC has to exist if you wish to use this option. Ensure that the linked email address is still operational because the confirmation email will arrive at that address.

Step 2 - Visit the website and log in

Visit www.incometax.gov.in and click on the button that says Login Here at the right side corner. There are also options to register new users and to help you in case you have forgotten your password. In case you cannot remember your user ID it is your TAN.

Step 3 - Fill up the form

Once logged in, select the TDS tab and the Upload TDS option.

A form will open up - sit down with full focus and key in the correct details.

Now click ‘Validate’.

Step 4 - Verify/ Validate

Depending on which option you choose, follow the relevant set of directions given below:

If you chose option 1, link details for EVC:

After step 3, upload the zip file containing the TDS returns. Select ‘Click Here to e-verify’.

A new screen will open up where you can choose between two options. You may either use an existing EVC or request a new one to be generated. Choose the more convenient option and enter the EVC. Click on submit. A success message will appear on screen, and you will receive a confirmation on your registered email id.

If you choose option 2:

You need to have your DSC handy. Upload your TDS zip file and also attach the DSC file. Once the statement is uploaded, a success message will appear on screen, and you will receive a confirmation on your registered email ID.

Steps To File TDS Return Offline

Filing TDS returns offline is also a relatively easy process, although it does require more paperwork in comparison with the online method. Especially if you are not prepared with the requirements for EVC and DSC validation processes, this is a good way to go.

Get the right format from the following link: https://www.tin-nsdl.com/services/eTDS-etcs/eTDS-rpu.html.

Prepare the TDS return in clean text format. It has to be a .txt or a Notepad file. Again, you need to utilise RPU for this option too - it is available on the NSDL website.

Utilise yet another NSDL tool, FVU, to verify. Errors, if any, will be detected and called out automatically by the FVU at this stage.ge

If any errors occur, do not panic. You simply need to make the required corrections and validate the file once again.

The generated .fvu file has to go through the following two ste.ps

1 - It has to be submitted at the TIN FC

2 - It has to be signed by an authorised signatory and saved to a CD or pen drive along with Form 27A.

Who is Eligible for TDS Return?

To file a TDS return is obligatory for any individual or body that is obligated to deduct tax at source. This consists of the deduction of the salary TDS by employers, the payment of contractors or professionals by businesses, and the payment of interest tax by banks and persons subject to payment under special sections.

After the TAN registration is achieved and the TDS is deducted, the responsibility of filing the TDS return comes into play, regardless of the size of the business. Even those who claim tax deduction under property or rent are required to do so. The basis of eligibility is on the act of deduction and not based on the level of income.

Due Date to File TDS Returns

The quarterly due dates to file TDS returns are fixed and are as follows:

In the first quarter, from April to June, the returns must be filed and submitted before 31st July.

In the second quarter, July through September, the returns should be filed and submitted before 31 October

In the third quarter, October through December, the returns should be filed and submitted before 31st January

In the last quarter, January through March, the returns should be filed and submitted before 31st May.

Late filing of the TDS can result in a penalty and a late fee. Meeting the deadlines to file your TDS return helps avoid penalties and also provides timely tax credit to deductees. Compliance is easy through regular monitoring of due dates, thus avoiding errors in the end.

Conclusion

When you file TDS return properly, it aids in proper reporting of taxes by both deductors and taxpayers. It makes tax deductions to the government, and it is well recorded in the records of taxpayers. Refunds, compliance status and future assessments can be affected by delays or errors. By submitting the TDS return at the right time using the right details also minimise the problems of re-conciling and follow-ups. In the long run, this will turn into a routine administrative habit and not a burden. Regular filing enhances transparency and maintains financial records in accordance with statutory requirements.

How to file TDS return