How to File TDS Returns Online: Step-by-step Filing Process
TDS is a mandatory tax deduction system in India. Every deductor who deducts TDS from payments must file TDS returns on time. If you want to learn how to file a TDS return online, this blog will guide you step-by-step through the process, including forms, due dates, documents, and common mistakes to avoid.
Overview of TDS Return Filing
TDS return filing reports the details of TDS deducted and deposited to the Income Tax Department. TDS return filing should be done quarterly and applies to employers, businesses, and individuals making certain payments like salary, rent, commission, interest, and professional fees.
Who is Eligible for TDS Return?
The following are required to file TDS returns:
- Employers deducting TDS from employee salaries
- Businesses making payments to contractors, professionals, etc.
- Banks deducting TDS on interest
- Anyone who deducts TDS as per the Income Tax Act
Rate of TDS Deduction
TDS rates vary based on payment type:
- Salary – Based on income tax slab
- Interest on fixed deposit – 10%
- Rent – 10%
- Contractor payment – 1% or 2%
- Professional services – 10%
- Technical services – 2%
Note: Check the latest TDS chart for exact rates applicable to your transactions.
Due Date to File TDS Returns
Missing these deadlines may lead to late filing fees under section 234E.
| Quarter | Period Covered | Due Date |
|---|---|---|
| Q1 | April – June | 31st July 2025 |
| Q2 | July – September | 31st October 2025 |
| Q3 | October – December | 31st January 2026 |
| Q4 | January – March | 31st May 2026 |
Steps for Filing TDS Return Online
Step-by-step TDS filing process to submit your return:
Collect Required Data
Prepare details of TDS deducted, PAN of deductees, payment amounts, and challan details.
Download and Install the RPU (Return Preparation Utility)
Visit the NSDL website to download the free RPU tool for preparing returns.
Fill in the Return Details
Choose the correct TDS return form, such as Form 26Q or 24Q, and enter the required details.
Validate Using FVU (File Validation Utility)
Once your return is filled, validate it using the FVU tool provided by NSDL.
Submit Through the TIN-FC or TRACES Portal
Upload the validated file on the TIN or TRACES portal using your TAN credentials.
Verify With DSC or EVC
Use a digital signature certificate or an electronic verification code to complete the submission.
Download Acknowledgement
After submission, download the acknowledgement file for future reference.
Documents Required for TDS Filing
The following documents are required for filing your return:
- TAN and PAN details
- Challan details of TDS payment
- PAN of all deductees
- Payment amount and TDS deducted
- TDS return form (26Q, 24Q, etc.)
- Digital Signature Certificate (for online verification)
Having these documents ready ensures smooth filing without errors.
Common Mistakes to Avoid During TDS Filing
Here are some common filing mistakes that can cause rejection or penalties.
- Using the wrong TAN or PAN
- Quoting incorrect challan details
- Filing the wrong form
- Filing the wrong form
- Incorrect TDS amount or rate applied
- Not validating the return through FVU
How to Make TDS Online Payment
Follow these steps to make a TDS online payment :
- Visit the NSDL tax payment portal
- Choose Challan 281
- Enter TAN, assessment year, and payment details
- Select the payment type (200 for TDS payment)
- Make payment using net banking or debit card
- Save and print the challan receipt
This challan number is required while filing the TDS return.
Filing Form 26Q and 24Q
Form 26Q is used for TDS on all payments except salaries, such as interest, rent, or contractor payments .
Form 24Q is particularly for TDS deducted from employee salaries.
While preparing form 26Q or 24Q:
- Enter challan details properly
- Mention the PAN of all deductees
- Ensure correct section codes and payment types
- Use FVU to validate before submission
Hi there! I’m a Chartered Accountant with over 20 years of experience in financial accounting and a passion for writing. I enjoy simplifying complex topics like GST and income tax, believing that learning should be a lifelong journey. I'm here to share insights and make financial matters easier for everyone!
Frequently Asked Questions
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How does BUSY handle correction statement filing?BUSY accounting software enables users to generate TDS correction statements, which can include updating challan details, correcting PAN errors, or updating deductee records. It simplifies error rectification and helps generate accurate revised returns.
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What forms does BUSY support?BUSY supports the preparation and e-filing of multiple TDS return forms, including Form 26Q, 24Q, and 27Q. The software validates data and allows export to FVU format for easy online submission.