If your business deducts tax at source from salaries, vendor payments or rent, quarterly TDS return filing is not optional — and the penalties for getting it wrong compound quickly.
The Quarterly Cycle
TDS returns are due four times a year: 31 July, 31 October, 31 January and 31 May, each covering the preceding quarter. Form 24Q handles salary deductions; Form 26Q covers domestic non-salary payments like contractor fees and rent.
Why Reconciliation Matters More Than the Filing Itself
The actual filing is mechanical. What determines whether it goes smoothly is whether your deduction records, challan payments and deductee PANs all agree with each other before you file — mismatches here are what generate defaults on the TRACES portal.
PAN errors are the most common default
An invalid or mismatched PAN doesn't just cause a filing error — it forces 20% TDS deduction under Section 206AA regardless of the deductee's actual tax slab, which then requires correction on both sides.
What Late Filing Actually Costs
Section 234E imposes ₹200 per day until filed, capped at the TDS amount itself. Beyond that, Section 271H allows a penalty of ₹10,000 to ₹1 lakh for filings that are both late and incorrect — the two penalties are independent of each other.
Don't Forget Form 16 / 16A
Once your Q4 return is filed, Form 16 for employees is due by 15 June. Form 16A for non-salary deductions is due within 15 days of each quarterly filing — both generated from the same TRACES data your ECR produces.
We handle this full cycle — deduction tracking, ECR filing, challan payment and certificate generation — through our TDS Return Filing service.
