TDS Return Forms: Know About TDS Form 24Q, 26Q, 27Q, 27EQ in India

TDS, implemented by the Income Tax Department of India, is a tax payment system under which the tax is paid by the person/entity making the payment. For example, employers are supposed to deduct the employee’s income tax obligation from their salary and companies are required to deduct the shareholder’s tax obligation from the dividend credited. This system enables the government to generate adequate revenues. In order to make declarations for tax payments, individuals must fill out certain forms. 

Different TDS return forms are rolled out for streamlining the taxation procedure, based on the intent of TDS deduction, income of deductee, nature of income and type of deductee. 

What are the Different TDS Return Forms?

As the deductor or employer is liable to deduct tax at source and deposit the TDS return form, it is important for one to know the different TDS Return Forms that are available catering to different situations. 

The table below highlights the following TDS Return forms and their distinguishing features.

To gain deep insight regarding the above-mentioned TDS return forms, go through the following sections. 

Form 24Q

• Form 24Q is a TDS return form that has to be filled for the declaration of the TDS return of an individual on a quarterly basis. 
• All the information in the form points towards salary payments of employees and TDS deductions made on the payments. Moreover, if an employer has not deducted TDS or has deducted at a lower rate, reasons for the same have to be mentioned in the form. 
• This quarterly statement is for deduction of tax under Section 200 (3) of the ITA in respect of the salary paid for the quarter ended. 
• The form has two annexures- Annexure I and Annexure II. Annexure I contain challan-related detail along with employee-wise break up of TDS. Annexure II holds information on employees’ salaries paid or credited for the entire financial year. Even details related to net payable tax are also mentioned.
• Employer/ deductor must file Annexure I for all four quarters of a year, whereas Annexure II has to be furnished in the fourth and final quarter of the year.
• Form 24Q can be easily downloaded and submitted online and offline in person. 

Form 26Q  

• Form 26Q is to be submitted on a quarterly basis by payer for deduction of tax on payments received by employees other than salary.
• This particular form is applicable for tax deducted under Section 200 (3), 193 and 194 of the Income Tax Act, 1961 and has only one annexure, unlike Form 24Q

The various sections covered in Form 26Q are mentioned in the table below.

Form 27Q

• Form 27Q applies to TDS deductions on payments disbursed to non-residents of India other than salary. This quarterly statement is applicable under sub-section 3 of Section 200 of the Income Tax Act. 
• The deductors who are eligible to avail of Form 27Q are as follows-

1. Statutory body (Central government and state government).
2. Local authority (Both Central government and state government).
3. Autonomous body (Both Central government and state government).
4. AOP (Association of Person).
5. Company/ Division of a company.
6. Firm.
7. HUF/ Individual.
8. Artificial Juridical Person.

• Non-government employers/deductors have to mandatorily submit PAN.
• Individuals must fill out the amount column in the form. In case they have no amount to provide, they must enter 0.00.
• Provide deductor/employer category according to Annexure 1, section code as Annexure 2. Reasons stated for lower/ higher/ no deductions according to Annexure 3, nature of remittance in Annexure 4. Lastly, mention the employee’s/ deductee’s country of residence as per Annexure 5.
• The table will show some of the Sections that are covered in Form 27Q:

Form 27EQ

• Form 27EQ is based on the tax collected at source (TCS). This quarterly statement is applicable under Section 206C of the ITA for the quarter ended.  
• Form 27EQ is a statement that reflects TCS. Tax Collected at Source (TCS) is a system by which sellers collect tax from buyers while debiting the amount that is to be paid to buyers. The tax can also be collected when sellers receive money from buyers through credit, cheque, cash, demand cash etc. 
• It is mandatory for the employer to mention the TAN in Form 27EQ. Like Form 27Q, non-government employers/ deductors must provide PAN details. On the other hand, government deductors must choose ‘PANNOTREQD.’
• The category of the deductor must be indicated as per Annexure1, section code based on Annexure II and reasons for lower/higher or no deductions based on annexure III.

The table below highlights the following collection code that is covered in this form as follows-

Process to File TDS Return Online

The TDS Return can be filed through online and offline methods. Here are the steps that will help one file TDS return online:

Step 1: Firstly, go to the TIN NSDL’s e-Government e-TDS/TCS RPU (Return Preparation Utility) official website and refer to the file format or data structure as per which an e-TDS or e-TCS return must be prepared. 

Step 2: Now, prepare an e-TDS or e-TCS return. One can also prepare it according to the file format followed in clean test ASCII format and give ‘txt’ as filename extension. 

Step 3: On preparing the files as per format, it needs to be verified via the FVU (File Validation Utility) given in NSDL.

Step 4: If any discrepancy arises after verification, FVU (File Validation Utility) will generate a report mentioning the errors. Now the discrepancies must be addressed and the file will again go through the verification process via FVU. 

Step 5: Later, the .fvu file generated after going through the second round of verification must be submitted at TIN-FC or uploaded on the filing page of Income Tax Department’s official website. 

One can also file the TDS return through an offline process by following the steps mentioned below:

Step 1: One must go to the TIN NSDL official website and check the file format (RUP) or data structure like which e-TDS or e-TCS return must be filed. 

Step 2: On preparing the file according to the given file format, verify it using FUV (File Validation Utility).

Step 3: In case of any errors, FVU will give out an errors report which will have to be verified again via FVU. 

Step 4: Now submit the generated file at TIN-FC. Save the .fvu file (TDS return) in a pen drive or CD and submit it with Form 27A. The concerned authority must duly sign it. 

How to Download TDS Return Forms?

The steps that have to be followed to download TDS Return forms are as follows-

Step 1: Go to the official website of NSDL and choose ‘Downloads’ Tab. 

Step 2: Select e-TDS or e-TCS from the drop-down and click on ‘Quarterly Returns.’

Step 3: Head to choose ‘Regular’ and get redirected to a new page.

Step 4: Now, taxpayers must select TDS Return Form according to their requirements and download it. 

Due Dates of Filing TDS Return Form

To know the original due date of filing a TDS return form for 2022-23, refer to the table below:

In conclusion, any information on deducted and deposited TDS is available in the quarterly statements known as TDS return, which the employer must submit to the Income Tax department. A taxpayer must choose a particular TDS return form for which they have to file TDS return accordingly.

Frequently Asked Questions