TDS Return Filing (24Q or 26Q or 27Q or 27EQ) in India 2026

Every quarter, your accountant tells you TDS is done, but the deductor's certificate is wrong, the challan doesn't match Form 27A, or the Traces portal rejects your statement at 11:58 PM on the due date. Under Section 200 of the Income Tax Act 1961, every person responsible for deducting tax at source is obligated to file quarterly TDS returns in the prescribed form and pay the balance tax before the statutory due date. Failure attracts interest under Section 201(1A), penalty under Section 272A, and in cases of deliberate short-deduction, prosecution under Section 276B. The stakes are real. As of the FY 2025-26 compliance cycle, the Income Tax Department has intensified reconciliation drives using AIR (Annual Information Return) and Form 26AS, making even minor mismatches between TAN-based challans and quarterly statements flag a notice within 60 days. KAMRIT Financial Services LLP handles the complete TDS filing lifecycle for businesses deducting salaries (Form 24Q), contractor and professional payments (Form 26Q), non-resident payments (Form 27Q), and tax collected at source on buyback or immovable property (Form 27EQ). We manage TAN registration, challan verification on OLTAS, Form 16/16A generation, and post-filing reconciliation against Form 26AS so your FY closes clean. From kickoff to downloadable TDS certificate in your inbox, KAMRIT gives you a compliance partner who knows Section 200 from Section 201(1A) by heart.

What is TDS Return Filing (24Q or 26Q or 27Q or 27EQ) in India 2026?

TDS Return Filing is the quarterly submission of consolidated statements of tax deducted at source, governed by Section 192 through Section 206 of the Income Tax Act 1961 read with the Income Tax Rules 1962 (Rules 31, 31A, 37). There are four prescribed forms: Form 24Q covers salary payments where the deductor files a salary bill along with the quarterly statement; Form 26Q covers payments to Indian resident contractors, professionals, and other dedutees where PAN is available; Form 27Q covers payments to non-resident dedutees, foreign companies, or Indian firms with no PAN where TDS rates under DTAA or Section 206AA apply; and Form 27EQ covers Tax Collected at Source under Section 206C on sale of goods above ₹50 lakh (for motor vehicles) or immovable property where the buyer deducts before payment. The statements are prepared in CSV or JSON format and uploaded on the NSDL TRACES portal under the OLTAS framework. Each quarter's return must be accompanied by a duly verified TDS challan (CP-69/CP-74/OB-39 depending on mode) and matched with the NACH/NECS credit in the deductee's PAN database. Filing deadlines are 31 July (Q1), 31 October (Q2), 31 December (Q3), and 31 May (Q4). The deductor must also issue Form 16 (salary) or Form 16A (non-salary) within 15 days of the due date. KAMRIT manages all four forms, the reconciliation of challans with statements, and the issuance of certificates to your vendors and contractors so their own ITRs are not disrupted.

Who needs this

TDS Return Filing applies to any person, individual, HUF, firm, company, trust, or government body, who falls within the deductor categories defined under the Income Tax Act 1961 and the CBDT notifications issued thereunder.

• Any person deducting salary under Section 192, regardless of turnover, including startups paying monthly remuneration to founders.
• Any business or profession whose receipts from a single contractor exceed ₹30,000 in a single payment or ₹1,00,000 in aggregate in a financial year triggers Section 194C (contractor payment).
• Non-resident companies or foreign entities receiving royalties, technical fees, or interest from an Indian source under Section 195 require Form 27Q filing and TDS clearance certificates.
• Any person deducting rent under Section 194I where the rent paid exceeds ₹2,40,000 per annum (₹20,000 per month) in FY 2025-26.
• Companies and LLPs deducting commission or brokerage under Section 194H where the aggregate exceeds ₹15,000 in a year.
• Employers with multiple state-wise registration units holding separate TANs must file separate Form 24Q for each TAN if state codes differ.
• Any person buying goods under Section 206C(1) where turnover exceeded ₹10 crore in the preceding FY ( TCS on specified goods from FY 2024-25 under relevant amendments).
• Companies deducting fees to directors under Section 194M where total fees exceed ₹50,000 in a year without PAN of payee.
• Any person operating a bank account for the purpose of TDS remittance under OLTAS must have a valid TAN registered with Income Tax Department.
• Genuine non-residents claiming treaty benefit via Form 10F and lower withholding certificates under Section 197 require Form 27Q filing with rate adjustment declarations.

Documents required

KAMRIT's TDS filing is document-light because we use existing compliance records. The documents required depend on the form type and the nature of deductor. We request only what is strictly needed for the specific statement.

• TAN allotment letter or Form 49B acknowledgment showing 10-digit TAN issued by Income Tax Department under Section 203A.
• Quarterly TDS challan details (BSR code, scroll number, date, CIN) from bank or NEFT/RTGS transaction confirming credit to Income Tax suspense account.
• Consolidated employee/contractor/vendor payment details in Excel with PAN, amount, TDS deducted, rate applied, and nature of payment for each dedutee.
• Form 16 Part A and Part B from employer (for existing employees, to cross-check salary components under Section 192).
• PAN and Aadhaar linkage confirmation for each dedutee as required under Section 139A and Rule 114AAA for Form 26Q/27Q.
• Non-resident dedutees: Form 10F declaration, Tax Residency Certificate (TRC), and lower withholding certificate under Section 197 if treaty rate sought under Form 13.
• Bank account statement or ledger showing the gross amount credited or paid and the TDS portion separately for each dedutee in the quarter.
• PAN of the deductor company/LLP/firm as captured in the TDS statement header (required in Form 24Q and 26Q).
• Board resolution or partnership deed extract authorising the signatory for TDS filings if the authorized signatory is not a director/partner.
• Previous quarter TDS receipts filed on TRACES portal (to verify DSC registration and validate continuity of filings for the current quarter).
• Form 27EQ details: property sale agreement or goods invoice value above the TCS threshold for the relevant quarter.
• Digital Signature Certificate (Class 2 or Class 3) of the authorized signatory registered on the TRACES portal for online verification and filing submission.

How KAMRIT runs it, step by step

KAMRIT's TDS filing process runs in five structured stages from data receipt to post-filing reconciliation. Each stage has defined deliverables, timelines, and checkpoints so you always know where your filing stands.

1. Data Collection and Deductor Profiling. Within 2 hours of engagement, KAMRIT sends a structured data intake template capturing TAN details, BSR codes for all challans in the quarter, deductor PAN, and dedutee-level payment and TDS data. We verify your TAN status on the NSDL TAN online portal and confirm that the DSC is registered on TRACES. For first-time filers, we raise a TAN registration request via Form 49B if not already obtained. This stage typically completes within 1 working day of receiving complete data.
2. Challan Reconciliation and OLTAS Verification. We download the Challan Status Enquiry from the NSDL Protean (formerly TRACES) portal for each challan CIN and match it against your bank statements and payment records. Any mismatched or uncredited challans are flagged within the first 2 working days. If challans are not credited to the correct TAN, we initiate a correction through the NACH credit rectification process with the bank. This reconciliation step is critical because under Rule 31A, a TDS statement without a matched challan is treated as an invalid filing.
3. Statement Preparation and DSC Signing. KAMRIT prepares the quarterly TDS statement in the prescribed format (CSV for Form 24Q and 26Q; JSON for Form 27Q) using your deductor and dedutee data. Form 24Q requires Annexure II (salary breakdown per employee) while Form 26Q requires Annexure II with PAN and section-wise breakdown. For Form 27Q, we include the treaty rate, Form 10F, and Section 206AA compliance flags. All statements are validated using the e TDS RPU utility available on the TRACES portal before signing. The authorized signatory's DSC (Class 2 or Class 3) signs the file. This stage takes 3 to 5 working days from receipt of complete deductor data.
4. Portal Upload and Acknowledgement Generation. We upload the signed statement on the Income Tax e-Filing portal (login.incometax.gov.in) under the 'e-File > Income Tax Returns > TDS' section. The portal generates an Provisional Receipt Number (PRN) and a provisional receipt if challans are matched. Within 24 to 48 hours of upload, the backend processing by the TIN wing assigns a valid Acknowledgement Number and generates Form 27A (control statement) and Form 16/16A as applicable. We download and share the acknowledgement, Form 27A, and the consolidated TDS certificate with you within 5 working days of upload.
5. Form 16/16A Issuance and Post-Filing Reconciliation. For salary deducciones under Section 192 (Form 24Q), KAMRIT generates Form 16 Part A and Part B for each employee within 5 working days of acknowledgement. For Form 26Q and 27Q, we generate Form 16A for each dedutee. We also verify that the TDS credit reflects correctly in the deductee's Form 26AS (now integrated into Annual Tax Statement on the portal) within 15 days of filing. Any mismatch is corrected via a correction statement under Section 200(3) read with Rule 37(4). We track your annual filing requirement (Annual TDS Return under Section 206A) and trigger the Q4 year-end pack in April for a clean 31 May deadline.

Timeline

From the day you provide complete data and valid challan records, KAMRIT targets a filing acknowledgement within 5 to 7 working days for Form 24Q and Form 26Q. Form 27Q for non-resident dedutees takes 7 to 10 working days because of additional treaty rate verification and Form 10F documentation. Form 27EQ (TCS on buyback or property) follows the same timeline as Form 26Q provided the transaction deed and gross value certificate are provided upfront. The Income Tax Department's TIN wing typically processes e-returns within 24 to 48 hours for valid statements, but during peak quarters (Q4 ending 31 May), processing queues can stretch to 5 to 7 working days. Government deductors and banks on core banking system integration may see slower processing up to 10 working days. KAMRIT controls the pre-submission stages (data validation, challan reconciliation, statement preparation, DSC signing, and portal upload) which we complete within 3 to 5 working days. Regulator-controlled stages (TIN processing, acknowledgement generation, Form 26AS credit update) take the remaining 2 to 7 working days. Correction statements, if needed, follow the same timeline. On average, a standard Form 24Q or 26Q filing is acknowledged within 8 to 12 working days from kickoff. Your downloadable TDS certificate and Form 16A reach your inbox within 15 working days in normal quarters.

How our pricing compares

KAMRIT's TDS Return Filing is priced at ₹1,899 per quarter for a single Form 24Q or 26Q filing, ₹6,899 per year for all four quarters (saving ₹778 versus paying quarterly), and ₹14,899 per year for the TDS Premium 195 package that covers Form 27Q (non-resident) and Section 195 certificate filings in addition to all quarterly statements. Compare this with ClearTax which charges ₹499 per quarter for basic TDS but adds ₹1,500 per correction statement and ₹2,000 for Form 27Q, making their effective annual cost ₹4,496 to ₹7,996 depending on your mix. IndiaFilings charges ₹2,500 per quarter (₹9,000 annually) without Form 27Q included and with correction statements billed separately at ₹1,200 each. Vakilsearch charges ₹2,200 per quarter and ₹18,999 annually for their premium TDS package including Form 27Q. LegalRaasta charges ₹1,999 per quarter with annual packages starting at ₹7,499 but caps the number of challans at 25 per quarter; additional challans above that limit are billed at ₹50 per entry. KAMRIT's annual package at ₹6,899 covers all four quarters and up to 50 challans with no per-correction surcharge. Government fees for TDS filing are nil as there is no filing fee on the Income Tax e-Filing portal; however, GST at 18% applies to professional service fees and is included in all KAMRIT quoted prices. The price differential is justified because KAMRIT includes challan reconciliation and Form 26AS matching in the base fee, services that competitors charge as add-ons at ₹500 to ₹1,000 per correction round. Our chartered accountant-reviewed returns carry a satisfaction guarantee: if your return is rejected by the TIN wing due to a KAMRIT error, we refile at no additional charge.

Common mistakes KAMRIT avoids

TDS filing errors are disproportionately costly because the penalty regime under the Income Tax Act 1961 is non-negotiable and the Income Tax Department runs automated mismatch flags against your PAN, TAN, and deductor records every quarter. Here are the eight mistakes KAMRIT sees most often in first-timer and DIY filer cases.

• Mismatched challan CIN: Filing a TDS statement without verifying that the challan CIN (Challan Identification Number) has actually credited to the correct TAN on OLTAS is the single biggest rejection cause. The portal accepts the file but the statement shows 'unmatched challan' in the annual reconciliation.
• Wrong Section code: Applying Section 194C instead of Section 194J (professional fees) or vice versa changes the TDS rate, attracts an intimation under Section 200A, and causes the dedutee's Form 26AS to show wrong tax credit.
• Missing Form 15H/15G declaration: Senior citizens and individuals with income below the taxable threshold file Form 15H (for senior citizens) or Form 15G (for others) to claim nil TDS deduction. If the deductor processes the payment without receiving the declaration, refund adjustments at year-end become complicated.
• PAN not quoted or quoted incorrectly: Rule 37B requires PAN in all TDS statements. Deductions under Section 206AA apply a 20% TDS rate if PAN is not quoted, but many deductors fail to apply this higher rate and face a Section 201(1A) interest demand.
• Delay in Form 16 issuance beyond 15 days of quarter-end: Under Rule 31(3), Form 16 must be issued within 15 days of the due date. Delay beyond this triggers a penalty of ₹100 per day under Section 272A(2), up to ₹10,000 per quarter.
• Form 27Q without Form 10F for treaty rate: Non-resident deductor claiming a lower rate under a Double Taxation Avoidance Agreement must have Form 10F and a valid Tax Residency Certificate. Filing Form 27Q without these triggers Section 206AA standard rate of 20% or higher, and the excess TDS paid is non-refundable as a credit mismatch.
• TDS on advances reversed but not reflected in correction statement: If a contractor payment advance was deducted in Q2 but the work was cancelled in Q3, the original TDS must be reflected as 'adjusted' or a correction statement filed. Failure to do this creates a credit in the contractor's Form 26AS that cannot be reconciled.
• Quarterly statement filed but TDS amount not deposited: This is the most serious error. Filing the return without depositing tax attracts prosecution under Section 276B (rigorous imprisonment up to 7 years). The filing alone does not settle the liability.