TDS Return Filing
Stress-Free & On Time
Avoid the ₹200/day Section 234E penalty. We handle your complete quarterly TDS compliance — from challan payment and return filing on TRACES to Form 16/16A generation and 26AS reconciliation.
TDS Compliance Snapshot
Company Avenue Advisory
Compliance Health
CompliantDue Dates
Quarterly
Forms
24Q / 26Q / 27Q / 27EQ
Penalty
₹200/day (Sec 234E)
Authority
Income Tax Dept
Certificate
Form 16 / 16A
Late Fee
Max = TDS Amount
5,000+
TDS Returns Filed
What is TDS Return Filing?
Tax Deducted at Source (TDS) is a mechanism under the Income Tax Act where the payer (deductor) deducts a percentage of tax from each payment — salary, professional fees, rent, interest, contract payments — and deposits it with the Central Government on behalf of the payee (deductee).
Every TAN holder must file quarterly TDS returns reporting all deductions made during the quarter. The return maps each payment to the deductee's PAN and the challan through which TDS was deposited, enabling the government and deductees to verify tax credits in Form 26AS / AIS.
Failure to file on time attracts a mandatory ₹200/day fee under Section 234E — with no provision for waiver. Non-deduction risks 40% expense disallowance plus interest under Section 201(1A).
Who Needs to File TDS Returns?
Any entity that deducts TDS from payments is legally required to file quarterly TDS returns. Here are the most common categories.
Employers Deducting Salary TDS
Every employer paying salary above the basic exemption limit must deduct TDS under Section 192 and file Form 24Q quarterly.
Businesses Paying Professionals
Entities paying fees to doctors, lawyers, engineers, architects, consultants etc. above ₹30,000/year must deduct TDS under Sec 194J.
Companies Paying Rent
Any person (other than individual/HUF) paying rent above ₹2,40,000/year must deduct TDS @ 10% under Section 194I.
Buyers of Immovable Property
Buyers of property worth ₹50 lakh or more must deduct 1% TDS under Section 194IA and file Form 26QB online.
Businesses Paying Commissions
Entities paying commission, brokerage or contract payments above threshold limits under Sec 194C and 194H must file TDS returns.
Government Departments
All Central and State government departments must compulsorily deduct TDS on all eligible payments and file quarterly returns.
Banks Paying Interest
Banks and co-operative societies paying interest above ₹40,000/year (₹50,000 for seniors) must deduct TDS under Section 194A.
Companies Paying Dividends
Domestic companies distributing dividends are required to deduct TDS @ 10% under Section 194 on amounts above ₹5,000.
Benefits of Timely TDS Return Filing
Timely TDS compliance protects your business from financial penalties, legal risk and damaged professional relationships.
Avoid ₹200/day Penalty
Section 234E imposes a mandatory ₹200/day late filing fee from the due date. Professional filing ensures zero penalties.
Form 16 Generation for Employees
Timely filing enables seamless generation and distribution of Form 16/16A certificates to deductees, aiding their ITR filing.
Avoid Prosecution Risk
Consistent non-deduction or non-filing of TDS returns can result in prosecution under Section 276B with rigorous imprisonment.
Maintain Clean IT Record
A clean TDS filing history reflects positively on your business compliance profile with the Income Tax Department.
Stronger Vendor Relations (Form 16A)
Timely Form 16A issuance builds trust with contractors and service providers who rely on it for claiming TDS credit.
Accurate 26AS Matching
Correct TDS filing ensures deductees' 26AS accurately reflects their TDS credit, preventing ITC mismatches during assessments.
Avoid 40% Expense Disallowance
Section 40(a)(ia) disallows 30-40% of expenses where TDS was not deducted or deposited. Proper compliance protects your P&L.
Maintain Compliance Rating
Banks, NBFC lenders, and government tenders increasingly scrutinise TDS compliance history during credit and eligibility assessments.
TDS Return Filing — Step by Step
Gather Payment Data
Collect all payment records — salary, professional fees, rent, contract payments, commissions — for the quarter. Identify each deductee's PAN and payment category.
Calculate TDS Liability
Apply the correct TDS rate per section (192, 194C, 194J, etc.) to each payment. Account for lower deduction certificates (Form 13) and Nil deduction cases.
Pay TDS Challan (ITNS 281)
Deposit the calculated TDS amount with the government via Challan ITNS 281 through authorised banks or the IT portal. Monthly deadlines apply (7th of next month, March by 30th April).
Prepare e-TDS Return
Prepare the quarterly TDS return file (24Q for salary, 26Q for non-salary residents, 27Q for non-residents, 27EQ for TCS) using NSDL's RPU utility.
File on TRACES / Income Tax Portal
Upload the prepared .fvu file on the Income Tax e-filing portal. Validate using DSC or EVC. Obtain the 15-digit token number as acknowledgment.
Generate Form 16 / 16A
After successful filing and challan matching on TRACES, download and generate Form 16 (salary) and Form 16A (non-salary) certificates for all deductees.
Distribute to Deductees
Issue Form 16/16A to respective employees, contractors, and service providers within the prescribed deadline. Employees need Form 16 for ITR filing.
Reconcile with 26AS
Verify that TDS credits appear correctly in each deductee's 26AS / Annual Information Statement (AIS) on the IT portal. Raise TRACES correction if discrepancies found.
Documents for TDS Return Filing
Important: Ensure all deductee PAN numbers are correct before filing. Wrong PANs result in TDS at the higher rate of 20% and deny deductees their 26AS credit.
TDS Filing Timeline — 6 Key Stages
Data Collection
Gather all quarterly payment records, deductee PAN details and challan information.
TDS Calculation
Compute correct TDS for each payment type applying applicable section rates and thresholds.
Challan Payment
Deposit TDS with government via ITNS 281 before the 7th of the following month.
Return Preparation
Prepare validated .fvu file using RPU utility with all deductee and challan details mapped.
TRACES Filing
Upload return on IT portal, authenticate via DSC/EVC and obtain 15-digit acknowledgment token.
Certificate Issuance
Download and issue Form 16/16A to all deductees within the prescribed due date.
What You Receive
Starting at ₹2,499 / quarter
All-inclusive. No hidden charges.
Why Choose Company Avenue for TDS Filing?
5,000+
TDS Returns Filed
₹0
Late Penalties
15+
Years Experience
24 hrs
Response Time
Consequences of TDS Non-Compliance
Warning: TDS non-compliance triggers ₹200/day mandatory fees, interest, 40% expense disallowance, prosecution risk and denied tax credit for deductees. Protect your compliance record.
Section 234E Late Fee
₹200/day from due date to actual filing. Cannot be waived. Maximum capped at TDS amount. Automatic system levy.
Interest under Sec 201(1A)
1% per month on undeducted TDS and 1.5% per month on deducted-but-not-deposited TDS from due date to payment date.
40% Expense Disallowance
Section 40(a)(ia) disallows 30% of payments where TDS was not deducted — directly impacting your taxable income.
Assessee-in-Default Status
Company becomes liable for the TDS amount plus interest, treated as tax dues recoverable via demand notice under Sec 201.
Prosecution under Sec 276B
Wilful failure to deposit TDS can result in rigorous imprisonment of 3 months to 7 years plus fine under Sec 276B.
Deductee 26AS Credit Denied
If return is not filed or wrong PAN used, deductees cannot claim TDS credit — creating liability disputes and undue hardship.
TDS Return Forms — Complete Guide
Filed by employers deducting TDS from employee salaries under Section 192. Contains annex I (challan details) and annex II (employee salary breakup, deductions). Due quarterly.
Filed for TDS on payments to resident individuals and entities — professional fees (194J), rent (194I), interest (194A), contract (194C), commission (194H), dividend, etc.
Filed for TDS deducted on payments to non-residents and foreign companies under Chapter XVII-B — royalty, technical fees, interest, capital gains (DTAA provisions apply).
Filed by sellers collecting Tax Collected at Source (TCS) under Section 206C — on sale of scrap, timber, minerals, liquor, vehicles above ₹10L, overseas remittances above ₹7L.
Frequently Asked Questions
Everything you need to know about TDS return filing, forms, penalties and compliance in India.
File TDS Returns On Time
Avoid ₹200/day penalty. We handle your quarterly TDS filing end-to-end.
Starting at ₹2,499
Per quarter. Includes filing, challan reconciliation, and Form 16/16A generation.
Get Started5,000+
Returns Filed
100%
On-time
15+
Years Exp.
24h
Response
Related Services
Never Pay ₹200/Day Penalty Again
File TDS Returns On Time
Company Avenue Advisory handles your complete quarterly TDS compliance — from challan payments and TRACES filing to Form 16/16A generation and 26AS reconciliation. Starting at ₹2,499 per quarter.