If you deduct TDS on salaries, rent, professional fees, or contractor payments, you're required to file a quarterly return summarizing every deduction, not just deposit the tax and move on. Missing or getting this wrong triggers a daily late fee that has no upper cap tied to time, only to the TDS amount itself.
Which Form Applies to You
| Form | Applies To |
|---|---|
| Form 24Q | TDS on salaries under Section 192, employee-wise details |
| Form 26Q | TDS on non-salary domestic payments, contractors, rent, professional fees, interest, commission |
| Form 27Q | TDS on payments to non-residents |
Quarterly Due Dates You Need to Track
- Q1 (April to June): due July 31
- Q2 (July to September): due October 31
- Q3 (October to December): due January 31
- Q4 (January to March): due May 31
The Penalty Structure That Catches People Off Guard
Section 234E imposes a late fee of ₹200 per day for late filing, with no cap other than the total TDS amount deducted for that quarter. Beyond that, Section 271H allows a separate penalty of ₹10,000 to ₹1,00,000 for incorrect information in the return, wrong PAN, wrong amount, wrong challan details. If you correct the error within a year, the Section 271H penalty may not apply, but the daily late fee under 234E still accrues from the original due date.
How to Use Our Free Tool
This tool helps you organize deductee-wise TDS details, challan information, and quarter-wise totals before you file on the government's TRACES or income tax portal. Getting your numbers straight before you sit down to file reduces the chance of a correction statement later, since fixing a filed return takes real time through the TRACES correction process.
Frequently Asked Questions
What happens if I file my TDS return late?
A late fee of ₹200 per day accrues under Section 234E until you file, capped at the total TDS amount for that quarter. There's no grace period, the fee starts from the day after the due date.
Can I correct a TDS return after filing?
Yes, through a correction statement on TRACES (TDS Reconciliation Analysis and Correction Enabling System). You can correct challan details, deductee PAN, and TDS amounts, with a correction window of 6 years from the end of the relevant financial year.
What is the penalty for incorrect information in a TDS return?
Section 271H allows a penalty of ₹10,000 to ₹1,00,000 for errors like wrong PAN or wrong amounts, though this may not apply if you correct the return within one year of the original filing.
Organize your quarterly numbers with the TDS Return Summary Tool before you file.
