How to File TDS Return Online: Step-by-Step Guide
- 1. How to File TDS Return Online June 3, 2025
- 2. AGENDA •What is a TDS Return? •Who Should File TDS Return? •Types of TDS Returns •Step-by-Step Filing Process •Due Dates for Filing TDS Returns •Penalties for Late Filing •Benefits of Filing TDS Return Online •Common Mistakes to Avoid
- 3. What is a TDS Return? Definition and Purpose Key Details Included Mandatory Quarterly Filing A TDS return is a quarterly statement filed by deductors to report tax deducted at source on payments made, helping the government track tax collection efficiently. The return includes deductor and deductee PANs, amounts paid, tax deducted, challan details such as BSR code and CIN, and TDS certificate information. Every deductor must submit the TDS return quarterly within prescribed due dates to remain compliant and avoid penalties for late or incorrect filing.
- 4. Who Should File TDS Return? Employers Deducting TDS on Salaries Companies Making Specified Payments Employers who deduct tax from employee salaries are required to file TDS returns quarterly to report these deductions to the Income Tax Department. Companies making payments above specified limits for rent, commission, professional fees, and other categories must file TDS returns for these transactions. Individuals and HUFs Under Section 194M Banks and Other Deductors Individuals or Hindu Undivided Families (HUFs) not liable to audit but who deduct TDS under section 194M must file their TDS returns online. Banks deducting TDS on interest income and any other entities deducting tax at source under the Income Tax Act are mandated to file TDS returns online.
- 5. Types of TDS Returns Used for reporting TDS deducted on salary payments under Section 192. Filed quarterly by employers. Covers TDS on payments other than salary to residents, such as rent, commission, and professional fees, under Section 200(3). Mandatory for TDS on sale of property transactions under Section 194-IA, applicable when the buyer deducts tax at source. Form 24Q - TDS on Salary Form 26Q - TDS on Non-Salary Payments Form 26QB - TDS on Property Sale Form 26QC is for TDS on rent payments under Section 194-IB, while Form 26QD covers TDS on contractual work and professional fees under Section 194M. Form 26QC and 26QD - TDS on Rent & Contractual Payments Specifically for TDS deducted on payments made to non-resident individuals or entities, under Section 200(3). Form 27Q - TDS on Non-Residents
- 6. Step-by-Step Filing Process Visit the TIN-NSDL website, go to Services > TDS > e-TDS/e-TCS RPU, and download the latest Return Preparation Utility and File Validation Utility. Using RPU, enter deductor TAN, PAN, address, select return type and period, and provide challan and deductee details accurately. Open File Validation Utility, select the prepared file, run validation, and generate a validated .fvu file for upload. Download RPU Fill TDS Form Validate File Register on TRACES portal if needed. Log in to Income Tax portal, upload validated .fvu file, and submit with Digital Signature. Register & Upload RPU software FVU software Latest utility versions Completed TDS form Deductor and deductee details Challan info and tax deducted .fvu validated file Validation report Error-free return file TRACES registration Uploaded TDS return Submission acknowledgement
- 7. April to June July to September October to December January to March Due date for filing TDS return for the first quarter is 31st July. Due date for filing TDS return for the second quarter is 31st October. Due date for filing TDS return for the third quarter is 31st January. Due date for filing TDS return for the fourth quarter is 31st May. Q1 Q2 Q3 Q4 Due Dates for Filing TDS Returns
- 8. Penalties for Late Filing Consequences of Non-Compliance + Late Filing Fee under Section 234E: ₹200 per day until the return is filed, capped at the amount of TDS deducted. + Penalty under Section 271H: Ranges from ₹10,000 to ₹1,00,000 for incorrect or non-filing beyond one year. + Interest for Late Deduction: 1% per month on the amount of tax deducted after the due date. + Interest for Late Deposit: 1.5% per month on the amount of tax deposited late to the government. – Accumulating late fees can significantly increase your financial burden. – Penalties can lead to legal notices and increased scrutiny from the Income Tax Department. – Interest charges add a continuous financial cost until compliance is achieved. – Failure to file accurately and timely may damage business credibility and cause operational disruptions. Penalties for Late Filing
- 9. Benefits of Filing TDS Return Online Ensures Compliance Smooth Issuance of Form 16/16A Filing TDS returns online keeps you updated with tax regulations, helping avoid penalties and legal issues by submitting returns on time. Accurate and timely filing enables the seamless generation and distribution of Form 16/16A to employees and deductees. Reduces Department Notices Accurate TDS Credit & Tracking Accurate online filing reduces errors, minimizing the likelihood of receiving notices or queries from the Income Tax Department. Online filing allows deductees to claim their TDS credit correctly and provides easy tracking of returns via the TRACES portal.
- 10. Common Mistakes to Avoid • Quoting incorrect PAN or TAN can lead to return rejection and penalties. • Selecting the wrong TDS return form (e.g., 24Q instead of 26Q) causes filing errors. • Entering incorrect challan details such as BSR code, CIN, or amount leads to mismatches. • Failing to validate the TDS return file using the File Validation Utility (FVU) before upload. • Missing due dates results in late filing fees, penalties, and interest charges.
- 11. Thank you.