What is TDS?
Tax Deducted at Source (TDS) is a system in which tax is deducted from certain payments when the payment is made or credited, as applicable. The person making the payment is generally called the deductor, while the person receiving the payment is the deductee.
TDS may apply to payments such as salary, rent, professional fees, commission, interest and other specified payments. The amount deducted is deposited with the Government and is reflected as tax credit for the deductee, subject to applicable rules.
The main purpose of TDS is to collect tax during the year instead of waiting until the taxpayer's final income-tax liability is determined.
Who needs to file a TDS return?
A person who is required to deduct TDS generally has to report the deduction through the prescribed TDS statement at the required interval. The exact filing requirement depends on the nature of the payment, the status of the deductor and the applicable tax rules.
Typical deductors
- Companies and other businesses
- Firms and other organisations
- Government or specified deductors
- Other persons who become liable to deduct TDS under applicable provisions
What is reported?
- Deductor and deductee PAN details
- TAN and statement details, where applicable
- Payment and deduction details
- Challan or tax-payment information
How are TDS rates decided?
TDS rates are not the same for every transaction. The applicable rate can depend on the nature of payment, the type of deductee, the relevant section or provision, PAN availability and other conditions prescribed under the current tax rules.
For this reason, a fixed statement such as “TDS is always deducted at 10% or 20%” should not be used as a general rule. Before preparing a return, check the applicable rate for the specific transaction and tax year.
What is TAN?
TAN means Tax Deduction and Collection Account Number. It is a 10-digit alpha-numeric number issued by the Income Tax Department to persons responsible for deducting or collecting tax at source, subject to applicable exceptions.
TAN is generally quoted in TDS/TCS returns, challans, certificates and other prescribed communications. Existing TAN numbers continue under the Income Tax Act, 2025.
Certain PAN-based transactions have specific exceptions, so the requirement should be checked for the exact type of payment before filing.
What is a TDS return?
A TDS return, also called a TDS statement, is a periodic statement containing details of tax deducted and related transactions. It helps the Income Tax Department match the tax deposited by the deductor with the tax credit of the deductee.
Common information reported includes the PAN of the deductor and deductee, payment details, TDS deducted, challan information and other fields required for the relevant form.
Filing the statement accurately is important because an error in PAN, challan, amount, tax section or other data can create a mismatch or lead to rejection or correction requirements.
TDS return forms
The Income Tax Department has changed the numbering of several forms under the Income Tax Act, 2025. The older form numbers remain widely used in online searches and business records, so the table below shows both references for clarity.
| Current form | Earlier / commonly known form | Purpose |
|---|---|---|
| Form 138 | Form 24Q | Quarterly statement for TDS on salary and specified salary-related payments. |
| Form 140 | Form 26Q | Quarterly statement for TDS on non-salary payments to residents. |
| Form 144 | Form 27Q | Quarterly statement for TDS on payments, other than salary, made to non-residents. |
| Form 143 | Form 27EQ | Quarterly statement for tax collected at source (TCS) on specified transactions. |
Always use the current form, utility and instructions available on the Income Tax e-Filing portal for the relevant tax year.
TDS return due dates
For the current quarterly filing schedule shown by the Income Tax Department, TDS/TCS statements are generally filed according to the following quarter-end schedule.
| Quarter | Period | Due date |
|---|---|---|
| Q1 | April to June | 31 July |
| Q2 | July to September | 31 October |
| Q3 | October to December | 31 January |
| Q4 | January to March | 31 May of the following financial year |
TDS certificates and Form 26AS
A TDS certificate is a document issued to the person from whose income tax has been deducted. The certificate provides details that help the recipient understand the TDS reported against the payment.
For example, Form 16 is associated with salary TDS, while Form 16A is commonly used for non-salary TDS. Other certificate forms may apply to specific transactions.
Form 26AS provides a consolidated view of tax-credit information linked to a PAN. Before filing an income-tax return, the taxpayer should review available tax-credit information and address any mismatch with the deductor or through the prescribed correction process.
Online TDS return filing process
The current online workflow uses the applicable return preparation utility, File Validation Utility (FVU) and the Income Tax e-Filing portal. A simple workflow is:
- Collect data: Keep PAN, TAN, deductee details, payment records and challan information ready.
- Prepare the statement: Use the applicable Return Preparation Utility (RPU) or compatible software for the correct tax year and form.
- Validate the file: Generate the required FVU file and correct any validation errors reported by the utility.
- Prepare the upload package: Follow the current upload format prescribed for the e-Filing portal.
- Log in with TAN: On the Income Tax e-Filing portal, open the relevant Income Tax Forms filing service for TDS/TCS.
- Upload and e-Verify: Upload the prepared file, complete verification and submit the statement.
- Check status: Review the filed-form status and keep the acknowledgement and supporting records for future reference.
Information required for TDS return filing
Keeping complete records before starting the quarterly return reduces errors and makes reconciliation easier.
Common TDS filing errors
Some errors can be prevented with a simple review before upload:
When a statement is rejected, read the rejection reason carefully, correct the underlying data or file issue, and submit the corrected file through the prescribed process.
Frequently Asked Questions
Is TDS return filing the same as depositing TDS?
No. TDS payment and TDS return filing are separate compliance steps. The tax deducted must be deposited within the applicable timeline, and the related statement must also be filed in the prescribed form.
What is the difference between Form 24Q and Form 26Q?
Form 24Q is the older/common reference for salary TDS, while Form 26Q is the older/common reference for non-salary TDS on payments to residents. Under the current form numbering, these correspond to Form 138 and Form 140 respectively.
Which form is used for TDS on payments to non-residents?
For quarterly TDS on payments other than salary made to non-residents, the current Income Tax Department form is Form 144, earlier known as Form 27Q.
Can a TDS statement be corrected after filing?
Yes. Correction statements are available for correcting eligible errors, subject to the applicable time limits and filing rules for the relevant tax year.
What should I do if the FVU file shows an error?
Read the validation message, correct the source data or file structure, regenerate the FVU file and validate it again before upload.
Where can I check official TDS filing instructions?
Use the Income Tax Department's current e-Filing instructions and the latest Return Preparation Utility / File Validation Utility available from the authorised source for the relevant tax year.
