TDS Return Filing — 24Q, 26Q, 27Q: Due Dates, Rates & Defaults
Quick answer: TDS is deposited by the 7th of the next month and reported quarterly — 24Q (salary), 26Q (resident payments), 27Q (non-residents), 27EQ (TCS) — by 31 July, 31 October, 31 January and 31 May. Late filing costs ₹200 a day under 234E; late deposit 1.5% a month. We run the deduction review against the current section schedule, file, generate Form 16/16A, and clear TRACES defaults.
Last verified 4 October 2026 — rules on this page checked against the current notifications. We update it the day a rule changes.
TDS compliance calendar — the whole year on one table
| Obligation | Form | Due date | Note |
|---|---|---|---|
| Monthly deposit | Challan ITNS 281 | 7th of next month (30 April for March) | Interest 1.5% per month if late |
| Q1 statement (Apr–Jun) | 24Q / 26Q / 27Q / 27EQ | 31 July | Form 16A by 15 August |
| Q2 statement (Jul–Sep) | 24Q / 26Q / 27Q / 27EQ | 31 October | Form 16A by 15 November |
| Q3 statement (Oct–Dec) | 24Q / 26Q / 27Q / 27EQ | 31 January | Form 16A by 15 February |
| Q4 statement (Jan–Mar) | 24Q / 26Q / 27Q / 27EQ | 31 May | Form 16 to employees by 15 June |
| Property purchase above ₹50 lakh | 26QB | 30 days from month-end | 1% on the whole consideration; on PAN, no TAN |
| Rent above ₹50,000/month (individuals) | 26QC | 30 days from year-end or vacation | 2% under 194IB |
| Foreign remittances | 15CA / 15CB with 27Q | Before remittance | Treaty rate needs TRC and Form 10F |
What goes wrong — and what it costs
- Late filing: ₹200 a day under 234E (capped at the TDS), plus a 271H penalty of ₹10,000–₹1,00,000 if over a year late
- Late deposit: interest at 1.5% a month from deduction to deposit; expense disallowance under 40(a)(ia) for the year
- Short deduction: wrong section or threshold, or no PAN (20% rate) — surfaces as a TRACES default
- Challan mismatches: wrong assessment year, section or TAN on the challan — the most common cause of unmatched credits in deductees' 26AS
- Foreign payments without 15CA/CB or 27Q — a Gurugram and Noida pattern with overseas freelancers and SaaS vendors
What we do
- TAN, deductor registration on TRACES, DSC/EVC setup
- Monthly deduction review against the current section schedule; challan generation and deposit
- Quarterly 24Q/26Q/27Q/27EQ preparation, FVU validation, filing and Form 16/16A generation
- Correction statements for defaults; justification-report analysis; demand closure
- Lower/nil deduction certificates (Form 13) for deductees; 15CA/15CB for remittances
- Payroll integration with EPF/ESIC and the Labour Code 50% wage rule — see the wage-structure checker
Client: A Gurugram marketing agency, 35 staff, paying overseas freelancers.
Situation: Foreign contractors paid without TDS or 15CA/CB; a default notice proposed interest and disallowance.
Approach: Classified each payment by section and treaty article, filed the pending 15CA/15CB, regularised 27Q with interest, and replied with the reconciliation.
Outcome: Disallowance dropped; a pre-payment compliance check now runs on every foreign invoice.
Client identity and certain details have been changed or withheld to protect confidentiality. Outcomes depend on individual facts and are not a guarantee of results.
City practices: Noida · Gurugram · Faridabad · Patna. Notice in hand? Income tax notice reply. Add every due date to your phone with the compliance calendar.
Buying from an NRI? From 1 October 2026 individual/HUF buyers use PAN-based Form 141 (no TAN) — see buyer's TDS on an NRI seller.
New certificates and statements: Form 130/131 (ex-16/16A), Forms 138/140/144; remittances: Forms 145/146 and Form 128.
Talk to us before you file anything
Frequently asked questions
Which TDS return do I file?
24Q for salaries, 26Q for other resident payments (contractors, rent, professional fees, interest, commission, 194Q purchases), 27Q for payments to non-residents, 27EQ for TCS. Property buyers file challan-cum-statement 26QB; individuals paying rent above ₹50,000 a month file 26QC. Each is quarterly except 26QB/26QC, which are per transaction.
When is TDS deposited and when are returns due?
Deposit by the 7th of the following month (30 April for March deductions; government deductors by book entry same day). Quarterly statements: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May. Form 16 follows the Q4 statement; Form 16A each quarter.
What does a late TDS return cost?
₹200 per day under section 234E until filed, capped at the TDS amount, plus a penalty of ₹10,000 to ₹1,00,000 under 271H if the statement is more than a year late or has wrong details. Interest runs at 1% a month for late deduction and 1.5% a month for late deposit, from the date deductible/deducted to the date deposited.
What are the common TDS rates and thresholds for a business?
Contractors 194C: 1% (individual/HUF payee) or 2% (others) above ₹30,000 single / ₹1,00,000 aggregate; professional fees 194J: 10% (2% for technical services) above ₹50,000; rent 194I: 10% land/building, 2% plant and machinery, above ₹6 lakh a year; commission 194H: 2%; purchases 194Q: 0.1% above ₹50 lakh where the buyer's turnover exceeds ₹10 crore. Several thresholds were raised from 1 April 2025 — we apply the current schedule, and the renumbered sections under the 2025 Act from Tax Year 2026-27.
What is a TDS default notice and how do I fix it?
TRACES flags short deduction, short payment, late payment interest, late filing fee and PAN errors. Most are fixed by a correction statement (conso file) with the right challan mapping, or by paying the interest/fee and filing the correction. Unanswered defaults become demands and block Form 16 generation.
Do I need a TAN?
Yes, for every deductor other than individuals filing 26QB/26QC on their PAN. TAN is applied on the TIN-NSDL/Protean portal; returns are filed on the e-filing/TRACES ecosystem with a DSC or EVC. We obtain it with incorporation where possible.