How To File TDS Returns?

TDS return filing is compulsory for all the assessees who fall under the tax slab as prescribed by the Income Tax Department. It is compulsory to e-file the TDS returns and it can be done through the official Income Tax e-filing portal.

TDS Return/statement is referred to the collection of all the transactions made by an Indian citizen during the Quarter that has been filed in the following forms: 26Q, 24Q, and 27Q with the help of a media that is detectable or comprehendible by a computer on a piece of data storage equipment such as a CD ROM or Pen Drive, but in the format permitted under the Income Tax laws in India. The file has to be completely filled and filed for each quarter of a fiscal year. You can do this online by filling and uploading the file in the designated online Government portal. However, it is essential first to know and understand how you are supposed to file TDS returns in the first place.

How to file your e-TDS Returns?

Income tax department and NSDL require the individual to file the e-TDS in different formats depending upon the type of payments. So, the accountant or you should choose it based on the same. You can download these forms from the portal online on your system.

  1. Annual e-TDS returns are to filed through Form 24 and 26
  2. Annual e-TCS is supposed to be filed in Form 27E.
  3. Quarterly return has to be filed in Form 24Q, 26Q, 27, 27Q, and 27EQ

Are you liable to Submit e-TDS Return/Statement?

As a taxpayer, if your TDS is deducted, you are liable to fill and file e-TDS Return. It is a mandatory step to file your TDS Return within a specific period of time. If you become a regular defaulter you might even be liable to pay a penalty for not submitting the e-TDS Return in due time. If you are any one of the following entities, you are required to file your e-TDS return quarterly:

  • People whose accounts are Audited
  • People holding an office under the Government
  • Company

Things To Note when Filling Up The TDS Forms:

Here are things one needs to ensure for successful eTDS acceptance:

  1. The Control Chart in Form 27A must be duly filled for all the columns. This has to be then verified and in hard copy form along with the e-TDS return on computer media.
  2. The Control totals of the amount paid as well as the tax deducted at source have to be mentioned clearly and have to be the same in all the forms including Form No. 27A, Form No. 24, Form No. 26, and Form No. 27.
  3. The individual needs to clearly mention their Tax deduction Account Number (TAN) in the Form No. 27A. This is similar to as it is done in the case of the e-TDS return. This is dictated by ‘sub-section (2) of section 203A of the Income-tax Act in India’.
  4. While filing one must make sure to fill the details that are related to the depositing of tax that is deducted at source in the table specifically ‘item No.6 of Form No.24’ or ‘item No.4 of Form No.26’ or ‘item No.4 of Form No.27’, generally.
  5. The basic structure that has to be used for e-TDS return prescribed by the concerned department is compulsory or rather mandatory to follow. It also helps since you have uniformity and a better understanding of how to fill the forms. It is compulsory to write the Bank Branch code or the BSR code. The BSR code is generally referred to the 7-digit code which is given to banks by Reserve Bank of India. This is, however, different from the branch code that we use otherwise. This OLTAS challan generally has this number or it can be taken from the bank branch or you could even log on to and get it. It is absolutely a must to mention the BST code both in the details of the challan as well as the deductee details. Do not leave this field blank, ever. Transfer of tax through book entry is conducted by Government deductees hence the BSR code must not be left blank.
  6. The e-TDS must be filed in the ASCII clean text format. For this, the individual may use a software of their choices such as CompuTax, MS Excel, or Tally. The individual may also use ERP or even the NSDL software Return Preparation Utility (e-TDS RPU-Light) to file the TDS return online. It is important to ensure that the online TDS file formats be in the requested format and must come with '.txt' as the filename extension.

Validation of the TDS Return File:

This is what you need to do for completing the validation process:

  1. Fill the file.
  2. Once a file has been filled and checked, update it in the portal validation utility tool for the same.
  3. The tool is provided by NSDL and can be used for free.
  4. If the file contains any errors the FVU will give a report of the errors.
  5. Simply make the required changes and verify the file again through the FVU.

Filing The TDS Online and Offline:

  • Offline Go to TIN – FC ( Center) near your Office: You can file the e-TDS returns at any of the TIN-FC opened by the e-TDS Intermediary for this purpose. The addresses of these TIN-FCs are available in the following URLs: or at
  • Online Filling of e-TDS Return: The more convenient method is to file your e-TDS return online for this you have to register to NSDL as mentioned before.

Penalty applicable to the filing of TDS:

The following penalties are applicable in relation to TDS:

  • Interest on late payment of TDS: As per the provisions of Section 201(1A), interest will be charged at the rate of 1.5% every month in case there is a delay in the deposit of TDS. The interest will be charged from the date of TDS deduction to the date of deposit.
  • Penalty applicable in case of late filing of TDS: A fine of Rs.200 per day is applicable in case an assessee fails to file the TDS by the due date. This fine is imposed until the date on which the return is filed. However, the fine is charged every day until the fine amount is equivalent to the amount of TDS due.
  • Penalty under Section 271H: An individual is penalised with a base amount of Rs.10,000 to as much as Rs.1 lakh in case:
    • He/she crosses the limit of one year to file the TDS
    • He/she furnishes the incorrect TDS amount
    • He/she furnishes incorrect details of PAN.

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