Step-by-Step Process to File TDS Return (Form 24Q & 26Q)
Tax Deducted at Source (TDS) is a crucial aspect of income tax compliance for businesses. Filing TDS returns correctly ensures you stay compliant and avoid penalties. Here’s a complete step-by-step guide for Form 24Q and Form 26Q filing.
1. Understand Forms 24Q and 26Q
- Form 24Q: For TDS on salaries. Employers use this form to report TDS deducted from employees’ salaries.
- Form 26Q: For TDS on payments other than salaries, such as contractor payments, rent, professional fees, and interest.
Knowing the right form ensures accurate reporting and smooth tax compliance.
2. Collect Required Information
Before filing, gather the following details:
- PAN of deductee (employee or vendor)
- TAN of the deductor (your business)
- Details of TDS deducted (salary or non-salary)
- Payment and deduction dates
- Challan details for deposited TDS
3. Prepare TDS Statements
Step A: Using Excel Utilities or Software
- Download the Form 24Q / 26Q Excel utility from the NSDL TDS portal.
- Fill in company details, TAN, PAN, and financial year.
- Add deductee details with PAN, salary/payment amount, and TDS deducted.
- Verify all entries using the ‘Validate’ button to check errors.
Step B: Using Accounting or Payroll Software
- Most payroll/accounting software (Tally, Zoho Books, QuickBooks, SAP) generate TDS return files automatically.
- Export the file in .txt format for submission.
4. Submit TDS Return Online
- Visit the NSDL TDS e-filing portal.
- Login using your TAN and password.
- Go to ‘Upload TDS Return’ and select Form 24Q or 26Q.
- Upload the validated .txt file generated from utility/software.
- Confirm submission and download the Acknowledgment Receipt (ITR-V) for your records.
5. Rectify Errors (If Any)
- If the portal rejects your file due to errors, check the validation sheet or software log.
- Correct errors (PAN mismatch, deductee details, or challan number) and re-upload.
- Keep the revised acknowledgment for compliance records.
6. Deadlines & Penalties
| Form | Quarter | Due Date |
|---|---|---|
| 24Q | Q1-Q4 | 31st July (annual) |
| 26Q | Q1 | 31st July |
| 26Q | Q2 | 31st October |
| 26Q | Q3 | 31st January |
| 26Q | Q4 | 31st May |
Penalty: Late filing or incorrect returns can attract penalties under Section 234E and interest under Section 201/202.
7. Keep Records Safely
- Store Acknowledgment Receipts, challans, and TDS statements securely for at least 6 years.
- These records are mandatory during audits and income tax assessments.
Conclusion
Filing TDS returns using Form 24Q & 26Q may seem complex initially, but following these steps simplifies the process. Use reliable software, double-check all details, and submit on time to stay fully compliant and avoid penalties.
Disclaimer: This blog is intended for general informational purposes only. It does not replace professional tax advice. For personalized guidance, consult a qualified tax consultant.