Overview of TDS Return Forms – 24Q, 26Q, 27Q & 27EQ
Filing TDS and TCS returns is a critical part of tax compliance for businesses and individuals who deduct or collect tax at source. Each form serves a unique purpose based on the nature of the payment and the recipient. This guide explains Forms 24Q, 26Q, 27Q, and 27EQ in detail, covering applicability, due dates, and filing procedures.
What are TDS and TCS Return Forms?
Before exploring each form, it’s important to understand what TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) returns represent. TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) returns are quarterly statements submitted to the Income Tax Department.
These returns contain details of tax deductions or collections, ensuring that the deducted tax is accurately reflected in the recipient’s Form 26AS and credited to their account.
Form 24Q – TDS Return on Salary Income
Form 24Q is specifically designed for reporting TDS on salary payments made to employees. It simplifies the reporting of salary-related tax deductions to the government.
Applicability of Form 24Q
Employers who deduct TDS under Section 192 on employee salaries must file this form every quarter.
Components of Form 24Q
It has two parts: Part A captures employer and employee details, while Part B includes salary structure, tax calculations, and deductions.
Due Date for Form 24Q
Quarterly due dates are 31 July, 31 October, 31 January, and 31 May (for the fourth quarter).
Form 26Q – TDS Return on Non-Salary Domestic Payments
Form 26Q applies to all domestic payments other than salaries. It is used to report TDS on services such as professional fees, rent, and contractor payments.
Applicability of Form 26Q
Businesses or individuals deducting TDS on non-salary payments to residents must use this form.
Payments Covered
Common payments include professional and technical services , rent, commission, brokerage, and interest.
Due Date for Form 26Q
This form must also be filed quarterly by 31 July, 31 October, 31 January, and 31 May.
Form 27Q – TDS Return on Payments to Non-Residents
Payments to non-residents or foreign companies attract TDS under different rules. Form 27Q ensures these transactions are reported properly.
Applicability of Form 27Q
It applies to any TDS deducted on payments like interest, royalty, or technical fees to non-residents.
Payments Covered
Examples include interest on securities, dividend payments, and fees for technical services.
Due Date for Form 27Q
The quarterly due dates mirror those of Forms 24Q and 26Q.
Form 27EQ – TCS Return Form
Form 27EQ is used to report Tax Collected at Source on specified goods and services. It ensures businesses remain compliant while collecting tax from buyers.
Applicability of Form 27EQ
This form is mandatory for businesses collecting TCS on specified items such as alcohol, scrap, or minerals.
Categories of Transactions
Covers transactions including liquor sales, scrap disposal, and forest product trading.
Due Date for Form 27EQ
Must be filed by 15 July, 15 October, 15 January, and 15 May for each quarter.
How to File TDS/TCS Return Forms?
Filing these returns requires accuracy and timely submission to avoid penalties. Returns can be filed through the TRACES or NSDL portals.
The process involves preparing the statement using the Return Preparation Utility (RPU), validating it using the File Validation Utility (FVU), and uploading it with a Digital Signature Certificate.
Correction Statements if Errors Occur
If there are mistakes like incorrect PAN or challan details, correction statements can be submitted through the TRACES portal.
Consequences of Late Filing of TDS/TCS Return
Late filing not only attracts monetary penalties but also causes delays in crediting TDS to the deductee.
Late Fee Under Section 234E
A penalty of ₹200 per day is levied for delays, up to the total TDS amount.
Penalty Under Section 271H
The assessing officer may impose an additional penalty ranging from ₹10,000 to ₹1,00,000.
Importance of Filing Correct TDS/TCS Returns
Accurate and timely filing ensures proper credit to deductees in Form 26AS.
It also avoids unnecessary penalties and promotes smooth processing of income tax returns for all parties involved.
Conclusion
Forms 24Q, 26Q, 27Q, and 27EQ are essential tools for reporting tax deductions and collections in India. Filing these forms correctly and on time safeguards businesses and individuals from penalties while ensuring that taxpayers receive proper TDS or TCS credit.
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Frequently Asked Questions
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What is the difference between Form 24Q and 26Q?
Form 24Q is for salary TDS, while Form 26Q applies to non-salary payments to residents.
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Is Form 27Q mandatory for all payments to non-residents?
Yes, it must be filed for any payment such as interest, royalty, or technical fees to non-residents.
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How can I download TDS return forms online?
You can download TDS return forms from the NSDL or TRACES websites.
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What is the due date for filing Form 27EQ?
Form 27EQ is due quarterly on 15 July, 15 October, 15 January, and 15 May.
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Can I revise TDS return forms if errors are found?
Yes. Correction statements can be submitted on TRACES to fix errors in filed returns.
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What happens if TDS returns are filed late?
A late fee of ₹200 per day is charged under Section 234E, and additional penalties up to ₹1,00,000 may apply.