How to File TDS Quarterly Return in India – Complete Guide

TDS quarterly return filing is an important compliance requirement for businesses, employers, companies, firms, professionals, and other deductors who deduct Tax Deducted at Source (TDS) from specified payments.

A TDS quarterly return contains details of the deductor, deductees, payments made, tax deducted, and TDS deposited with the government. Filing the statement correctly and on time helps ensure that the TDS credit is properly reflected for the deductees.

In this guide, we explain how to file TDS quarterly return, which TDS form to use, important due dates, required information, the filing process, common errors, and what to do after filing.

What Is a TDS Quarterly Return?

A TDS quarterly return is a statement submitted by a person or organisation that has deducted TDS during a financial year.

The statement reports details such as:

• TAN of the deductor
• PAN of the deductor
• PAN of the deductee
• Nature of payment
• Amount paid or credited
• TDS amount deducted
• Date of deduction
• TDS challan details
• TDS deposited with the government

Different TDS forms apply depending on the type of payment and recipient.

The Income Tax Department currently provides separate forms for salary TDS, resident non-salary payments, and non-resident payments.

Which TDS Quarterly Return Form Should You File?

The correct form depends mainly on the type of payment and the recipient.

For example, an employer deducting TDS from employees' salaries generally reports it through Form 24Q.

A business deducting TDS from resident professionals, contractors, commission agents, landlords or other applicable payments generally uses Form 26Q.

Payments to non-residents may require Form 27Q, depending on the nature of the payment and applicable provisions.

TDS Quarterly Return Due Dates

TDS statements are generally filed quarterly.

For the current filing framework, the Income Tax Department specifies the following due dates:

The fourth-quarter statement is therefore generally due on 31 May following the end of the financial year.

Always verify the applicable due date for the relevant tax year because tax procedures and statutory requirements can change.

What Information Is Required for TDS Quarterly Return Filing?

Before starting the filing process, the deductor should keep the relevant TDS records ready.

1. TAN

The Tax Deduction and Collection Account Number (TAN) of the deductor is important for TDS compliance.

2. Deductor Details

Keep the following information available:

• Legal name
• Address
• TAN
• PAN
• Contact details
• Responsible person's details

3. Deductee Details

For each TDS deduction, details may include:

• Deductee name
• PAN
• Address, where required
• Payment details
• Amount paid or credited
• TDS amount

4. TDS Challan Details

The quarterly statement needs to be properly matched with TDS payments.

Keep:

• Challan serial number
• BSR/code or relevant challan information
• Date of deposit
• Amount deposited
• Challan amount
• Relevant section/payment details

5. Payment Information

The accounting records should support:

• Date of payment or credit
• Nature of payment
• Amount paid
• TDS rate applicable
• TDS deducted
• TDS deposited

Step-by-Step: How to File TDS Quarterly Return

The filing process involves preparing the statement, validating it, generating the required file and submitting it through the Income Tax e-Filing portal.

Step 1: Collect TDS Data

Start by collecting all TDS transactions for the relevant quarter.

For example, for April to June, prepare a complete list of applicable payments made or credited during that quarter.

Reconcile the data with your accounting records before preparing the return.

Step 2: Check PAN and TAN Details

Verify the PAN of the deductor and deductees.

PAN errors are one of the common reasons for TDS reporting problems.

The deductor should also ensure that the correct TAN is being used.

Step 3: Identify the Correct TDS Section

Determine the applicable TDS provision for each payment.

Examples may include payments relating to:

• Salary
• Contractor payments
• Professional fees
• Rent
• Commission
• Interest
• Other specified payments

The applicable provision and rate depend on the nature of the payment and the facts of the transaction.

Therefore, businesses should not select a TDS section merely based on the description used in their accounting software.

Step 4: Reconcile TDS Deducted With TDS Deposited

Before preparing the quarterly statement, compare:

TDS deducted → TDS payable → TDS deposited → Challan available

This reconciliation helps identify missing or incorrect challans before filing.

Step 5: Prepare the TDS Statement

The Income Tax Department's current process requires preparation of the relevant TDS statement using the applicable Return Preparation Utility (RPU).

The Income Tax Department specifically states that the deductor should use the updated RPU and generate the required FVU file.

The statement should contain accurate information about:

• Deductor
• Deductee
• Payment
• TDS deduction
• Challan
• Tax deposit

Step 6: Validate the Statement

After entering the information, validate the statement using the applicable utility.

Errors should be corrected before generating the final file.

Typical problems can involve:

• Incorrect PAN
• Invalid TAN
• Incorrect challan details
• Incorrect section
• Incorrect amount
• Date mismatch
• Missing deductee information
• Incorrect quarter
• Duplicate entries

Step 7: Generate the FVU File

After successful validation, generate the File Validation Utility (FVU) file using the applicable process.

The Income Tax Department's current instructions require the validated FVU file to be prepared and uploaded in the prescribed format.

Make sure the FVU version is compatible with the version specified on the e-Filing portal.

Step 8: Login to the Income Tax e-Filing Portal

The deductor must be registered on the Income Tax e-Filing portal.

The Income Tax Department states that tax deductors and collectors must register on the e-Filing portal to submit TDS/TCS statements online.

Login using the appropriate TAN credentials.

Step 9: Select TDS/TCS Filing

After logging in, go to the applicable filing section.

The current Income Tax Department process is broadly:

e-File → Income Tax Forms → File Income Tax Forms

Then select the applicable Deduction and Collection at Source (TDS/TCS) category.

Select the appropriate TDS statement form and filing period.

Step 10: Select the Financial Year and Quarter

Select:

• Applicable tax year
• Quarter
• TDS statement form
• Upload type

The upload type may be:

• Regular
• Correction

For a first filing for the quarter, the statement would normally be a regular statement.

If an already filed statement needs correction, the correction filing process should be followed.

Step 11: Upload the TDS Statement

Upload the ZIP file containing the required FVU file.

The Income Tax Department specifically instructs users to ensure that the uploaded FVU version matches the version shown on the e-Filing portal.

Step 12: E-Verify the TDS Return

After uploading the statement, proceed to verification.

Select the appropriate verification method available for the deductor and complete the verification.

Once successfully submitted, confirmation is provided through the registered communication channels.

The submitted form can subsequently be viewed through the e-Filing portal's filed forms section.

What Happens After Filing a TDS Quarterly Return?

Filing the return is not necessarily the end of TDS compliance.

The deductor should also check whether:

• The statement was successfully processed
• Any defaults were identified
• Any short deduction exists
• Any short payment exists
• Any challan mismatch exists
• Any PAN-related issue exists
• Any interest or late filing amount is outstanding

TRACES provides functionality for viewing TDS statements and payments, challan status and consumption, downloading Form 16/16A and requesting relevant reports.

TDS Return Filing and Form 16A

For non-salary TDS, the deductee generally needs the TDS certificate in Form 16A.

Form 16A contains information such as:

• TDS deducted
• Nature of payment
• Amount paid
• TDS deposited

The Income Tax Department describes Form 16A as a quarterly TDS certificate for income other than salary.

After processing, the deductor can use the applicable TRACES functionality to obtain TDS certificates.

What Is the Difference Between TDS Payment and TDS Return Filing?

These are two separate compliance activities.

TDS Payment

This means depositing the TDS deducted from payments with the government.

TDS Return

This means reporting the TDS deductions and deposits through the applicable quarterly statement.

For example:

Payment made to professional → TDS deducted → TDS deposited → Quarterly TDS statement filed → TDS credit reported

A business should therefore track both payment compliance and return filing.

Common TDS Quarterly Return Filing Mistakes

1. Incorrect PAN

Entering an incorrect PAN can cause problems with the deductee's TDS credit.

2. Incorrect TDS Section

Using the wrong section can result in incorrect deduction and reporting.

3. Challan Mismatch

The TDS statement should properly correspond with the relevant TDS challan.

4. Wrong Deduction Date

The deduction date should match the underlying transaction and applicable rules.

5. Duplicate Entries

Duplicate reporting of the same transaction can create reconciliation issues.

6. Incorrect TDS Amount

The TDS amount reported should be reconciled with the accounting records and deposited amount.

7. Ignoring Correction Statements

If an error is discovered after filing, simply ignoring it can create downstream issues.

The appropriate correction process should be followed.

What Is a TDS Correction Return?

A TDS correction statement is used when an already submitted TDS statement contains an error or requires an amendment.

Examples include:

• Incorrect PAN
• Incorrect amount
• Wrong challan
• Incorrect deductee details
• Incorrect payment information
• Missing transaction
• Other reporting errors

Correction filing should be done carefully because changes can affect the deductor's records as well as the deductee's TDS credit.

TDS Quarterly Return Example

Suppose a business pays a professional ₹50,000 during a quarter and TDS is applicable.

The business may have to:

1. Record the professional payment.
2. Determine the applicable TDS provision.
3. Deduct the applicable TDS.
4. Deposit the TDS within the prescribed time.
5. Record the challan information.
6. Include the transaction in the applicable quarterly TDS statement.
7. Validate the statement.
8. Generate the required FVU file.
9. Upload the statement.
10. Complete verification.
11. Check processing/default information.
12. Provide the applicable TDS certificate to the deductee.

This process should be repeated for all applicable TDS transactions during the quarter.

TDS Quarterly Return Compliance Checklist

Before submitting the return, use this checklist:

☐ TAN verified
☐ Deductor details verified
☐ Deductee PANs checked
☐ Payment details reconciled
☐ TDS sections reviewed
☐ TDS deductions reconciled
☐ TDS payments reconciled
☐ Challan details checked
☐ Duplicate transactions removed
☐ FVU validation completed
☐ Correct financial year selected
☐ Correct quarter selected
☐ Correct TDS form selected
☐ FVU version checked
☐ Return uploaded
☐ E-verification completed
☐ Filing acknowledgement retained
☐ TRACES status checked

Why Professional TDS Return Filing Can Help Businesses

TDS compliance involves more than simply uploading a quarterly statement.

A business may need to reconcile its:

Accounting records + TDS deductions + TDS challans + quarterly statement + TRACES records

Professional TDS filing support can help businesses with:

• TDS calculation
• TDS return preparation
• PAN verification
• Challan reconciliation
• Quarterly TDS filing
• Correction statements
• TDS notices and defaults
• Form 16/16A support
• TDS compliance tracking

For businesses with multiple vendors, employees, contractors or professionals, maintaining an organised TDS process can reduce reporting errors.

Frequently Asked Questions About TDS Quarterly Return

1. What is a TDS quarterly return?

A TDS quarterly return is a statement submitted by a deductor reporting applicable TDS deductions, payments, deductees and related challan information for a quarter.

2. Which form is used for TDS quarterly return?

The form depends on the nature of the payment. Common forms include Form 24Q for salary, Form 26Q for resident non-salary payments and Form 27Q for specified non-resident payments.

3. What is the due date for TDS quarterly return?

Generally, the due dates are 31 July, 31 October, 31 January and 31 May for Q1, Q2, Q3 and Q4 respectively.

4. Is TAN required for TDS return filing?

TAN is a key requirement for persons liable to deduct TDS, subject to applicable exceptions and rules. The current e-Filing process requires the deductor to have a valid TAN registered on the e-Filing portal.

5. Can a TDS return be corrected after filing?

Yes. Where an already filed statement contains errors, the applicable correction statement process can be used.

6. What is Form 26Q?

Form 26Q is the quarterly TDS statement for applicable payments other than salary made to residents. Under the current Income Tax Department form structure, it is referred to as Form 140, formerly Form 26Q.

7. What is Form 24Q?

Form 24Q is the quarterly statement relating to TDS on salary. Under the current Income Tax Department form structure, it is referred to as Form 138, formerly Form 24Q.

8. What is Form 27Q?

Form 27Q relates to applicable TDS on payments other than salary made to non-residents. Under the current form structure, it is referred to as Form 144, formerly Form 27Q.

9. What is FVU in TDS return filing?

FVU stands for File Validation Utility. It is used as part of the process for validating the TDS statement before submission.

10. Can Taxless help with TDS quarterly return filing?

Yes. Taxless Advisory Services can provide support for TDS calculation, quarterly TDS return preparation, filing, reconciliation and correction-related compliance for eligible businesses.

Conclusion

TDS quarterly return filing is an important recurring compliance activity for businesses and other deductors.

The basic process is:

Collect TDS data → Verify PAN → Calculate/reconcile TDS → Deposit TDS → Prepare quarterly statement → Validate → Generate FVU → Upload → E-Verify → Check processing status

Maintaining accurate accounting records and reconciling TDS deductions with challans before filing can help reduce errors and correction requirements.

For businesses that have multiple employees, contractors, professionals, landlords or other TDS-applicable payments, professional assistance can make quarterly TDS compliance easier to manage.

Need Help With TDS Quarterly Return Filing?

taxless.in can assist with TDS return filing, TDS reconciliation, correction statements and ongoing TDS compliance.