TDS returns
File quarterly TDS returns — Form 24Q, Form 26Q, and Form 27Q — with filing schedule, process steps, correction types, and late filing penalties
TDS returns
You file TDS returns every quarter to report all deductions and deposits to the income tax department. The app generates TRACES-compatible CSV files and validates your data before download.
In-app vs TRACES: The app handles steps 1–3 below (generate, validate, download). Steps 4–6 (FVU validation, portal upload, DSC submission) happen on the TRACES portal or the Income Tax e-filing portal.
Return types
| Return form | What it covers | Key section |
|---|---|---|
| Form 24Q | Salary TDS — employee-wise salary details and tax deducted under Section 192 | Form 24Q details |
| Form 26Q | Non-salary TDS — vendor payments under Sections 194A, 194C, 194H, 194I, 194J, 194O, and others | Form 26Q details |
| Form 27Q | Payments to non-residents — all TDS deducted under Section 195 | — |
Each return is filed separately. If you deduct TDS on both salaries and vendor payments, you file both Form 24Q and Form 26Q for each quarter.
Filing schedule
All TDS returns follow the same quarterly schedule for FY 2025-26:
| Quarter | Period | Filing deadline |
|---|---|---|
| Q1 | April – June 2025 | 31 July 2025 |
| Q2 | July – September 2025 | 31 October 2025 |
| Q3 | October – December 2025 | 31 January 2026 |
| Q4 | January – March 2026 | 31 May 2026 |
Filing process
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Generate the return file — go to Payroll > TDS > Form 24Q (for salary) or Payroll > TDS > Form 26Q (for non-salary). Select the quarter and financial year, then click Preview. The system assembles all deduction and challan details.
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Review validation alerts — the system checks for missing PAN, invalid PAN format, unmatched challans, low TDS rates, and missing deposits. Fix any errors before proceeding.
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Download the CSV — click Download CSV to export the TRACES-compatible return file.
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Validate with FVU — run the downloaded file through the File Validation Utility (FVU) from Protean (formerly NSDL). FVU checks structural correctness and matches your challan details against the OLTAS database. You also need the CSI file (Challan Status Inquiry) downloaded from TIN-NSDL. On success, FVU produces an
.fvufile for upload. -
Upload to the e-filing portal — log in to the Income Tax e-filing portal. Navigate to e-File > Income Tax Forms, select the relevant form, and upload the validated
.fvufile. -
Submit with DSC or EVC — authenticate the submission with your Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). The portal generates a Provisional Receipt Number (PRN) and a token number as confirmation.
After filing
Once you submit the return:
- Download the acknowledgment from TRACES. Store it for your records.
- Record the PRN and token number — go to the return's status card in the app and update the filing status with the date, PRN, and token number.
- Monitor for demand notices — TRACES processes the return in 3–7 working days and may issue demand notices if there are mismatches between your reported TDS and the deposits in OLTAS.
- Issue TDS certificates — after filing, issue Form 16 (for salary) or Form 16A (for non-salary) within the prescribed timelines.
Correction returns
If you discover errors after filing, submit a correction return. Download the consolidated TDS file from TRACES as the base, make corrections, validate through FVU, and upload.
| Correction type | What it corrects |
|---|---|
| C1 | Deductor details — name, address (not TAN) |
| C2 | Challan details — BSR code, serial number, deposit date, amounts |
| C3 | Deductee details — name, section code, payment date, amounts (not PAN) |
| C4 | Salary details — Annexure II data in Form 24Q Q4 only |
| C5 | Deductee PAN — corrects the PAN of an employee or vendor |
You can combine multiple correction types in a single correction file. Each correction must be based on the latest consolidated file from TRACES.
Note: Correcting PAN (C5) is critical — an incorrect PAN means the deductee does not receive TDS credit in their Form 26AS/AIS.
Late filing penalties
| Penalty | Details |
|---|---|
| Late filing fee (Section 234E) | ₹200 per day from the due date until the filing date. Capped at the total TDS amount in the return. This fee is automatic. |
| Penalty for non-filing (Section 271H) | ₹10,000 to ₹1,00,000 at the Assessing Officer's discretion. From April 2025, you avoid this penalty only if you file within 1 month of the due date and pay all TDS, interest, and late fees. Budget 2025 shortened this grace window from 1 year to 1 month. |
| Interest on late deposit (Section 201(1A)) | 1% per month if TDS was not deducted; 1.5% per month if deducted but not deposited. See TDS challans. |
| Late TDS certificates (Section 272A(2)(g)) | ₹100 per day of delay in issuing Form 16 or Form 16A, capped at the TDS amount. |
Related articles
- TDS overview — what TDS is and your compliance responsibilities
- Form 24Q — quarterly salary TDS return details
- Form 26Q — quarterly non-salary TDS return details
- TDS challans — recording and verifying TDS deposits before filing
- Form 16 generation — issuing salary TDS certificates after filing
- Form 16A — issuing non-salary TDS certificates after filing