TDS Return Filing: Forms 24Q, 26Q, 27Q, 27EQ & Due Dates (FY 2025-26 Guide)

Tax Deducted at Source (TDS) is a strict compliance requirement for businesses operating in India. The Income Tax Department mandates that any person making specified payments must deduct tax at the source and deposit it directly with the government. After depositing the tax, the deductor must file a quarterly statement detailing the exact transactions. This formal process is known as tds return filing.

For the Financial Year 2025-26, the government has set strict timelines. Missing these dates triggers heavy penalties. Different types of payments require different reporting formats. The central tax authority categorizes these transactions into specific forms, namely forms 24q, forms 26q, forms 27q, and forms 27eq. Using the correct form is a mandatory step for proper tds compliance india 2025-26.

Breaking Down the TDS Quarterly Return Forms

The Income Tax Act mandates specific paperwork for different transaction types. Let us look at the four primary tds quarterly return forms every accountant must know.

1. TDS Form 24Q Salary

Employers must use Form 24Q to report tax deductions on employee salaries under Section 192 of the Income Tax Act. This form has two annexures. Annexure I contains details of the deductor, deductees, and challans. Annexure II contains the exact salary breakup. Annexure II is submitted only in the fourth quarter (Q4).

If you run a company and are checking the list of businesses in the MSME sector, keeping your employee tax records clean helps secure funding like an unsecured business loan for MSMEs much faster.

2. TDS Form 26Q Non Salary

For all domestic payments other than salary, deductors use Form 26Q. This covers payments like rent, professional fees, commission, and contractor payments under sections like 193, 194C, 194J, and 194I. Every tds form 26q non salary must include the PAN of the payee to be accepted by the system.

3. TDS Form 27Q NRI Payments

When making payments to Non-Resident Indians (NRIs) or foreign companies, the deductor files Form 27Q. This includes income from dividends, interest, or royalties. The tds form 27q nri payments is governed by Section 200(3) of the Income Tax Act.

4. TDS Form 27EQ TCS Return

Form 27EQ is not for tax deducted, but for Tax Collected at Source (TCS) under Section 206C. Sellers collect this tax from buyers at the time of selling specified goods like timber, scrap, or motor vehicles. Submitting a tds form 27eq tcs return requires the deductor to furnish their Tax Deduction and Collection Account Number (TAN).

The Form 24Q 26Q 27Q Difference

To simplify, the form 24q 26q 27q difference boils down to the recipient’s residency status and the income type.

• 24Q: Paid to resident employees for salary.

• 26Q: Paid to resident Indians for non-salary expenses.

• 27Q: Paid to non-residents for any income excluding salary.

TDS Payment Deadlines for FY 2025-26

Before you file the quarterly returns, you must deposit the collected tax into the government’s account. For non-government deductors, the deadline is the 7th of the following month. For example, tax deducted in August 2025 must be deposited by September 7, 2025.

The only exception applies to the month of March. For deductions made in March 2026, the deadline is extended to April 30, 2026. Keeping cash reserves ready for this tds return fy 2025-26 cycle is critical. Managing these outflows is much easier if you use an EMI calculator to track your regular business debt obligations or use an overdraft loan for business to bridge short-term cash flow gaps.

TDS Return Filing Due Date Calendar for FY 2025-26

The tds return filing due date falls on the last day of the month following the end of each quarter. According to the tds filing calendar india, the dates are:

Filing under tds section 200(3) requires a strict validation process. A single mismatch in PAN data will lead to a rejected file, stalling the entire loan documentation verification if you are applying for corporate finance.

TDS Return Late Filing Penalty

Delaying your submissions triggers immediate financial consequences.

1. Late Filing Fee (Section 234E)

The late filing fee under 234e is a flat ₹200 for every single day the delay continues. This fee stops accumulating once it reaches the total TDS amount for that quarter. You cannot upload your return without paying this fee first.

2. Interest on Late Payment (Section 201(1A))

If you deduct the tax but deposit it late, the department charges an interest rate of 1.5% per month from the date of deduction to the actual date of payment. Part of a month is considered a full month.

3. General Penalty (Section 271H)

For extreme delays exceeding one year or for furnishing incorrect information, the Assessing Officer can impose a tds return late filing penalty ranging from ₹10,000 to ₹1,00,000.

A poor compliance record negatively impacts your CIBIL score. Banks check your statutory payment history before approving large credit facilities like an unsecured business loan of 100 Cr or a massive business loan.

Best Practices for Businesses in 2026

With the recent updates linking tax audits to the GST 2.0 impact on small businesses, cross-matching your data is strictly required. Make sure your GST input credits match the TDS deductions claimed by your vendors. Any discrepancy triggers automated notices. If you are exploring new business ideas in Kolkata, setting up an automated accounting software early on prevents compliance nightmares later. This level of organization also speeds up the lap application process if you ever decide to pledge your commercial property.

Frequently Asked Questions (FAQ)

1. What is the due date for Q1 TDS return filing in FY 2025-26?

The deadline for the first quarter (April to June 2025) is July 31, 2025.

2. Which form is used for TDS on rent payments?

If the deductor is a company or a person subject to a tax audit, Form 26Q is used. For individuals paying rent above ₹50,000 per month, Form 26QC is applicable.

3. How much is the penalty for filing TDS returns late?

Under Section 234E, you must pay ₹200 per day until the return is filed, capped at the total TDS amount.

4. What is the difference between Form 24Q and 26Q?

Form 24Q is strictly for reporting tax deducted on employee salaries, whereas Form 26Q is for all other non-salary domestic payments like contractor fees or commissions.

5. Can I file a TDS return without paying the late fee?

No. The portal will reject your submission. You must deposit the Section 234E late fee via a challan before filing.

6. What is Form 27EQ used for?

Form 27EQ is the quarterly statement for Tax Collected at Source (TCS). It is used when sellers collect tax from buyers on specific goods like timber or scrap.

7. When is the TDS deposit due date for the month of March 2026?

For non-government deductors, the tax deducted in March must be deposited by April 30, 2026.

8. Does a low CIBIL score affect my TDS compliance?

No. Your CIBIL score does not affect tax compliance, but repeated tax defaults will lower your credit ranking, making it harder to secure the lowest interest rate in India for future borrowing needs.

9. Is it mandatory to provide PAN for Form 27Q?

Yes, for non-government deductors, providing the PAN of the non-resident deductee is mandatory.

10. What happens if I make a mistake in my TDS return?

You can file a revised or correction statement. Under the latest rules, you must fix all errors like wrong PANs or mismatched amounts within two years from the end of the financial year.