TDS Return Filing Guide 2025-26: Complete Step-by-Step Process

Contents

Introduction: Quarterly TDS Return Filing Explained
What is TDS and Why Quarterly Filing Matters
Quarterly Filing Schedule: FY 2025-26
Step-by-Step Guide to File Quarterly TDS Returns
Forms and Technical Requirements
Who Must File Quarterly TDS Returns
Understanding Different TDS Categories and Rates
Common Mistakes to Avoid
Penalties and Consequences of Late Filing
Latest Changes and Amendments for FY 2025-26
Related Useful Resources
Frequently Asked Questions (FAQs)
Conclusion

Introduction: Quarterly TDS Return Filing Explained

Tax Deducted at Source (TDS) is a critical component of India's income tax system, enabling timely collection of taxes through regular deductions. Every organization that deducts TDS must file quarterly returns within specified deadlines, demonstrating compliance with tax regulations. Understanding the quarterly filing process is essential for employers, contractors, financial institutions, and service providers.

Key Fact: Quarterly TDS returns must be filed within the prescribed deadlines for each quarter (Q1, Q2, Q3, Q4). Filing after these dates attracts penalties and potential notices from the Income Tax Department, regardless of the amount deducted.

This comprehensive guide walks you through the entire TDS return filing process for all quarters in FY 2025-26, explaining deadlines, procedures, compliance requirements, and recent changes introduced in the current financial year.

Click to reveal a quick tip!

Pro Tip: Set calendar reminders for all quarterly TDS filing deadlines (30th April, 31st July, 31st October, 31st January). Begin data collection 2-3 weeks before each deadline to avoid last-minute errors. Use the TRACES portal's "Draft Return" feature to prepare returns in advance.

What is TDS and Why Quarterly Filing Matters

Tax Deducted at Source (TDS) is a mechanism where an entity making a payment to another person deducts a portion of that payment as per tax regulations and deposits it directly to the government's income tax account. This ensures timely tax collection and reduces the final tax burden at the time of annual assessment.

Quarterly filing ensures that TDS compliance is distributed evenly throughout the financial year rather than concentrated at the year-end. This approach provides several benefits: it enables the government to collect taxes regularly, helps deductees track their TDS credit during the year, and demonstrates organizational compliance with tax authorities.

Note: TDS applies to various categories including salary (Section 192), interest (Section 194A), dividends (Section 194), contract payments (Section 194C), and professional fees (Section 194J). Each category has different thresholds and rates.

Why Quarterly Filing is Important

Regulatory Compliance: Quarterly filing demonstrates your organization's commitment to tax compliance and reduces the risk of IT Department scrutiny.
Deductee Benefits: Quarterly certificates enable deductees to track their tax credits throughout the year and plan their tax liabilities accordingly.
Penalty Avoidance: Filing on time prevents penalties and interest charges that compound over time.
Audit Readiness: Regular filing creates an audit trail and makes it easier to respond to IT Department queries.

Quarterly Filing Schedule: FY 2025-26

Understanding the timeline for quarterly TDS filing is essential to avoid penalties and ensure smooth compliance throughout the financial year. Here's the critical schedule for FY 2025-26:

Quarter	Reporting Period	Filing Deadline	TDS Deposit Deadline	Certificate Issuance
Q1	1st Apr – 30th Jun 2025	30th April 2025	By 7th of following month	15th Jul 2025 (optional)
Q2	1st Jul – 30th Sep 2025	31st July 2025	By 7th of following month	15th Oct 2025 (optional)
Q3	1st Oct – 31st Dec 2025	31st October 2025	By 7th of following month	15th Nov 2025 (optional)
Q4	1st Jan – 31st Mar 2026	31st May 2026	By 7th of following month	15th Jun 2026 (mandatory)

Important: The TDS amount must be deposited by the 7th of the following month (e.g., TDS deducted in April must be deposited by 7th May 2025). Return filing is a separate deadline from TDS deposit. Q4 certificates (Form 16/16A) are mandatory and must be issued by 15th June 2026 for the complete financial year.

Step-by-Step Guide to File Quarterly TDS Returns

Filing TDS returns for each quarter requires careful planning and accurate data compilation. Follow this comprehensive process to ensure error-free submission across all quarters:

Before You Start: Prerequisites and Documents

Before beginning the filing process for any quarter, ensure you have all necessary documents and information ready. This preparation phase is critical for accuracy:

Requirement	Description	Priority
TAN (Tax Account Number)	Unique 10-digit alphanumeric number assigned by IT Department to the deductor organization	Critical
Digital Signature Certificate (DSC)	Class II or Class III certificate valid for authorized signatory with current date within validity period	Critical
Deductee PAN/Aadhaar	Valid PAN or Aadhaar number of each person from whom TDS was deducted during the quarter	Critical
Deduction Details	Complete record of amount deducted, date of deduction, category, rate applied, and payment reference	Critical
Deposit Proof	Challan ITNS 280 or e-payment receipt for all TDS deposited during the quarter	Important
Bank Reconciliation Data	Bank statements and payment gateways matching all TDS deposits made during the quarter	Important
Previous Quarter Returns	Copies of previously filed quarterly returns for cross-reference and consistency checks	Important

Note: If your organization doesn't have a DSC in-house, you can authorize a Chartered Accountant, Company Secretary, or other qualified professional to sign and file returns on your behalf. Maintain an authorization letter on record.

The Complete Filing Process (10 Steps)

Follow these detailed steps to file your quarterly TDS return on the TRACES portal for any quarter in FY 2025-26:

Step 1: Access TRACES Portal – Visit the official TRACES website (https://www.taxcollectedatsource.gov.in) and log in using your TAN and password. The TRACES portal is India's single-window system for TDS return filing, certificate issuance, and reconciliation. Ensure your login credentials are current and your registered email is active.
Step 2: Navigate to Return Filing Section – Click on "File/View Return" under the TDS Return Filing menu. Select the appropriate form based on the deduction type (Form 24Q for most quarterly deductions). Choose the relevant assessment year (2025-26 for current financial year) and verify the correct quarter you're filing for.
Step 3: Enter Basic Information – Provide your TAN and verify all pre-filled organizational information including name, address, and financial year. Select the specific quarter (Q1, Q2, Q3, or Q4) corresponding to your filing period. Confirm the quarter selected matches the period for which you're filing deductions.
Step 4: Fill Deductee Details – Enter each person from whom you deducted TDS during the quarter. Include their valid PAN (10 characters) or Aadhaar number (12 digits), full name, residential address, and total amount deducted in that quarter. The TRACES system validates PAN numbers against the NSDL database in real-time.
Step 5: Categorize Deductions Correctly – Classify each deduction under the correct section of the Income Tax Act. Use Section 192 for salary/wages, 194A for bank interest, 194D for insurance proceeds, 194C for contract payments, 194J for professional fees, 194LA for insurance commission. Wrong categorization causes mismatches and triggers IT Department queries.
Step 6: Enter Monthly Deduction Details – For each deductee, input the quarterly breakdown: month-wise deduction amounts, gross payment made, TDS rate applied, and any exemptions claimed. Some deductees may have exemptions under Section 194 (for low-income individuals) – ensure these are properly documented and reflected.
Step 7: Verify Deposit Amounts – Cross-verify the total TDS deposited through Challan ITNS 280 or e-payment receipts with the total deductions shown in the return. The deposited amount must match the sum of all individual deductions. If there's a mismatch, investigate and correct before filing.
Step 8: Generate and Review XML File – The TRACES system generates an XML (Extensible Markup Language) file containing all return information in a standardized format. Download this file and verify every entry against your internal records, salary registers, and payment receipts.
Step 9: Sign with Digital Signature – Sign the return using your valid DSC (Class II or Class III). Ensure the signatory is an authorized representative (typically the Finance Manager, HR Head, or authorized professional) as per your organization's authorization structure. The system validates the DSC against the controller's database.
Step 10: Submit and Obtain Acknowledgment – Click the "Submit" button after digital signature. The portal immediately generates a unique acknowledgment number (also called Acknowledgment Reference Number or ARN). Save and document this acknowledgment number for future reference, correspondence with IT Department, and audit trails.

Reconciliation and Verification: Critical Post-Filing Steps

After filing your quarterly return, comprehensive reconciliation steps ensure accuracy and prevent mismatches that trigger IT Department notices:

Step 1: Internal Reconciliation (within 2 days) – Compare your filed return with internal salary registers, payment registers, bank statements, and TDS ledgers. Create a detailed reconciliation checklist verifying that every deduction recorded in your books matches the return filed. Document any discrepancies immediately.

Step 2: TRACES System Reconciliation (within 3-5 days) – Log back into TRACES and verify that your return status shows as "Filed" or "Acknowledged." Download the summary report generated by the system and cross-check all figures. Check the "Return Status" section for any validation errors or warnings flagged by the system.

Step 3: Deductee Reconciliation (within 7 days) – Ensure every deductee receives their quarterly TDS certificate (Form 24Q certificate or consolidated amount notification). For salaried employees, quarterly TDS should be documented on payslips. Verify that the amount shown to each deductee matches the return filed.

Step 4: Bank Statement Reconciliation (within 10 days) – Obtain bank statements for the quarter and verify all TDS deposits shown. Check that Challan ITNS 280 numbers are correctly recorded and match payment gateway confirmations. Ensure no duplicate deposits or missing entries exist.

Warning: Mismatches between your filed return and deductee certificates trigger automatic IT Department notices after 15-20 days. If a deductee files their personal return showing different TDS, the system flags both returns. Correct these discrepancies immediately by filing an amended return or issuing corrected certificates to deductees.

Forms and Technical Requirements for Quarterly Filing

Understanding the correct forms, formats, and technical setup is essential for error-free quarterly filing:

Form 24Q: Quarterly TDS Return

Form 24Q is the standard quarterly return form for reporting TDS deductions made during a three-month period. It contains separate sections for each category of deduction and requires detailed information about deductees, amounts, and deposits.

Key Sections in Form 24Q:

Part A: Deductor details (TAN, legal name, address, category of deductor)
Part B: Deductee information (PAN/Aadhaar, name, address, category, deduction details)
Part C: Summary of total deductions by category and section of the Income Tax Act
Part D: TDS deposit details, Challan references, and reconciliation of deposited vs. deducted amounts
Part E: Declaration and details of authorized signatory with DSC

Form 16 and Form 16A: TDS Certificates

Every deductee must receive a TDS certificate within prescribed timelines. For salaried employees, Form 16 (Part A and B) is issued; for all others, Form 16A is issued. Quarterly certificates are optional for Q1-Q3, but a consolidated annual certificate is mandatory by 15th June 2026 for the complete FY 2025-26.

Key Certificate Timelines:

Quarterly certificates: Can be issued after each quarter for transparency (optional)
Annual Form 16: Must be issued by 15th June 2026 for all salaried employees
Annual Form 16A: Must be issued by 15th June 2026 for non-salary deductees
Digital certificates: Available on TRACES portal for deductees to download independently

Challan ITNS 280: Proof of TDS Deposit

This is the receipt/proof that TDS has been deposited with the government. Each monthly deposit requires a separate challan generated through the e-payment gateway or deposited at authorized banks. Keep all challan copies organized by month and quarter for reference and audit trails.

Challan Information Required:

Challan Serial Number (unique identifier)
TAN of deductor
Assessment Year (2025-26)
Amount deposited
Date of deposit
Bank details and branch code

Digital Signature Certificate (DSC) Requirements

Your DSC must be valid and current at the time of filing. Ensure the certificate's validity date includes the filing date. The signatory must be an authorized person in your organization (typically Director, Partner, CFO, or authorized professional like CA).

Who Must File Quarterly TDS Returns

Not all organizations are required to file quarterly TDS returns. Understanding whether you must file is critical to determine compliance obligations and avoid unnecessary penalties:

Organizations Required to File Quarterly Returns:

All Employers: Private companies, partnerships, sole proprietorships, government organizations, NGOs, and trusts making salary or wage payments must file quarterly returns regardless of the amount deducted.
Financial Institutions: Banks, insurance companies, mutual funds, and non-banking financial companies (NBFCs) deducting TDS on interest, dividends, insurance proceeds, or commission.
Contractors and Service Providers: Organizations paying contractors, sub-contractors, or consultants subject to Section 194C (contract work) TDS must file quarterly.
Importers and Exporters: Entities making payments for professional fees (Section 194J), rent (Section 194IB), royalties (Section 194D), or commission (Section 194H).
Government Departments and Agencies: All central and state government departments deducting TDS on various categories of payments.
Public Sector Undertakings (PSUs): PSUs making any TDS deductions must file quarterly returns.

Organizations NOT Required to File (Exemptions):

Organizations that made NO TDS deductions: If you did not deduct any TDS during the quarter, you're technically not required to file. However, filing a "nil" return is recommended for compliance documentation.
Individual non-employers: Individuals who don't run a business or profession and have no employees are not required to deduct or file TDS.
Organizations with TDS below ₹5,000 per quarter: While not mandated to file, it's prudent to file to demonstrate compliance and avoid IT Department notices.

Note: Even if TDS deduction is below the mandatory filing threshold, submitting a "nil" quarterly return (showing zero deductions) is highly recommended. This establishes a pattern of compliance and protects your organization from IT Department inquiries or assessments.

Understanding Different TDS Categories and Rates

TDS applies to various categories of payments, each with specific rates, thresholds, and conditions. Correct categorization is essential for accurate quarterly filing:

TDS Categories and Applicable Rates for FY 2025-26:

Category	Section	Applicable Rate	Threshold Limit	Common Deductors
Salary/Wages	192	As per slab rates (5-30%)	No threshold	All employers
Bank Interest	194A	10% (5% for seniors, 0% for specific accounts)	₹40,000 p.a. (senior ₹50,000)	Banks, financial institutions
Dividend	194	10%	₹5,000 p.a.	Companies, mutual funds
Contract Payments	194C	1% (individuals), 2% (others)	₹30,000 (individuals), ₹75,000 (others)	Companies, contractors
Professional Fees	194J	10%	₹30,000 p.a.	Corporates, organizations paying professionals
Commission	194H	10% (5% for insurance)	₹5,000 p.a. (₹15,000 for insurance)	Companies, financial institutions
Rent	194IB	10% (individuals), 20% (others)	₹50,000 p.m.	Corporate tenants, individuals
Insurance Commission	194DA	5%	₹15,000 p.a.	Insurance companies

Important Note: Rates mentioned above are as per the Income Tax Act provisions for FY 2025-26. Some rates may vary based on treaty provisions for non-residents. Always verify the latest rates on the official IT website (https://www.incometax.gov.in) before filing.

Common Mistakes to Avoid During Quarterly TDS Filing

Learning from common filing errors can save time, money, and prevent regulatory headaches. Here are critical mistakes organizations frequently make:

Mistake 1: Incorrect or Invalid PAN/Aadhaar Entry

Issue: Entering wrong PAN (10-character code) or Aadhaar (12-digit number) creates permanent mismatches with government databases. The TRACES system validates these numbers in real-time against NSDL records.

Prevention: Always verify PAN/Aadhaar against identity documents (PAN card, Aadhaar card) before entry. Use a checklist system where HR/Finance cross-verifies details. If a deductee doesn't have PAN, request Aadhaar as an alternative.

Mistake 2: Wrong TDS Category or Section

Issue: Classifying salary TDS under Section 194C (contract work) or vice versa creates section-level mismatches. The IT Department's automated systems flag these immediately.

Prevention: Create a detailed categorization chart for your organization listing which section applies to each type of payment. Train Finance staff on correct classification. Use a pre-filled dropdown in TRACES to minimize manual entry errors.

Mistake 3: Incomplete or Missing Deductee Data

Issue: Omitting deductee names, residential addresses, or partial PAN triggers IT Department verification notices. The TRACES system won't accept incomplete entries for filing.

Prevention: Maintain a comprehensive master data file of all deductees updated quarterly with complete information. Use automated validation scripts before submission to flag missing fields.

Mistake 4: Mismatch Between Deposited and Reported TDS

Issue: Filing returns showing TDS deducted as ₹5,00,000 but only depositing ₹4,50,000 is a serious compliance issue. The IT Department's automated reconciliation system cross-verifies deposits against returns.

Prevention: Create a reconciliation schedule: monthly deposit reconciliation, quarterly pre-filing verification, and cross-check between bank statements, chalan copies, and filed return.

Mistake 5: Late Certificate Issuance to Deductees

Issue: Delaying Form 16 or 16A issuance beyond 15th June 2026 violates TDS compliance regulations and attracts Section 272B penalties up to ₹1,000 per deductee.

Prevention: Issue annual Form 16/16A by 30th May 2026 (15 days before the deadline). For large organizations, distribute them on a quarterly basis for transparency.

Mistake 6: Not Filing Amended Returns for Discovered Errors

Issue: If errors are discovered after filing (e.g., wrong TDS amount, missing deductee), many organizations ignore corrections. This creates a compliance liability that compounds.

Prevention: File corrected/amended returns within the same assessment year or 30 days of discovering the error. Use TRACES "Revised Return" feature to file corrections with proper documentation of the change rationale.

Mistake 7: Incorrect TDS Rate Application

Issue: Applying 10% TDS on professional fees when the rate should be different based on deductee's status (e.g., lower rate for individuals) creates mismatch issues.

Prevention: Maintain a rate chart and verification process. For professionals/contractors, collect appropriate proof (PAN, business registration) to determine correct rate applicability.

Important Warning: The Income Tax Department has automated cross-verification systems that match filed TDS returns with: (1) bank deposits, (2) deductee personal returns, (3) Form 26AS statements, and (4) previous quarter filings. Discrepancies are flagged automatically within 15-20 days, and penalties are assessed electronically.

Penalties and Consequences of Late or Incorrect Filing

Understanding penalty provisions is crucial for risk management and financial planning:

Penalty for Late Filing (Section 271C):

Scenario	Penalty Amount	Additional Consequences
Filing 1-30 days late	Minimum ₹500 or 10% of TDS amount (whichever is higher)	Notice issued; deductees cannot claim credit immediately
Filing 31+ days late	Minimum ₹1,000 or 10% of TDS amount (whichever is higher)	Formal IT Department notice; investigation initiated
Filing after IT Department notice	₹1,000 to 10% of TDS amount as per assessment officer	Prosecution risk; criminal charges possible for willful default
Non-filing despite repeated notices	Can result in legal prosecution	Criminal proceedings; imprisonment up to 6 months possible

Consequences of Incorrect Filing:

Mismatches with Deductee Returns: If your return shows different TDS amounts than the deductee's personal return, the IT Department issues a notice seeking explanation within 15-20 days.
Deductee Credit Denial: Incorrect filing can result in the deductee being denied TDS credit when filing their personal income tax return, creating disputes and assessments.
Interest on Undisputed Liability: If TDS deposited is lower than shown in returns, you may have to pay interest at 12% per annum on the shortfall amount.
Reputational Damage: Multiple defaults can affect your organization's creditworthiness, compliance ratings with IT Department, and future loan/credit applications.
Disqualification from Government Contracts: Repeated TDS compliance failures can lead to disqualification from government tenders and contracts.
Action Against Authorized Signatory: The responsible officer (who signs the return) can be personally held liable for willful non-compliance or incorrect filings.

Additional Penalties and Provisions:

Section 272B Penalty (Late Certificate Issuance): Up to ₹1,000 per deductee for late issuance of Form 16/16A beyond prescribed dates (15th June for annual).

Interest Under Section 220(2): If TDS amount is undisputed but payment is delayed, interest is charged at 12% per annum from the date of default.

Latest Changes and Amendments for FY 2025-26

Several important changes have been introduced for the current financial year. Staying updated ensures compliance and helps avoid penalties:

Change 1: Enhanced Real-Time Validation on TRACES

The TRACES portal now includes live validation of deductee PAN/Aadhaar against NSDL, Aadhaar database, and IT Department records. Invalid or mismatched numbers are flagged immediately during entry, not after filing. This reduces post-filing corrections needed.

Change 2: Mandatory Aadhaar for Individuals Without PAN

From FY 2024-25 onwards, if a deductee doesn't have a PAN, their Aadhaar number is mandatory for filing. The system will reject entries with neither valid PAN nor Aadhaar, ensuring better tax collection compliance and financial inclusion.

Change 3: TDS Compliance Certificate (TCC) Enhancement

The TRACES system now generates automated TDS Compliance Certificates post-filing, showing that you've filed quarterly returns on time. This certificate is valuable for regulatory audits, banking relationships, and government contract bids.

Change 4: Automated Form 26AS(v2) Updates

The renamed Form 26AS(v2) now updates in real-time as TDS returns are filed. Deductees can view their TDS credit status within 1-2 days of your filing, enabling faster financial planning. This increases the need for accuracy in quarterly filings.

Change 5: Stricter Match with Deductee Form 26AS

The IT Department's automated systems now automatically match your filed return with Form 26AS submitted by deductees. Any discrepancy is flagged within 10-15 days and requires immediate explanation with supporting documentation.

Change 6: DSC Validity Checks

The TRACES portal now checks DSC validity at the time of filing. Returns signed with expired DSC will be rejected. Ensure your organization's DSC is renewed before the quarterly filing deadline.

Change 7: Mobile-Friendly TRACES Interface

TRACES now has an optimized mobile application (iOS/Android) allowing preliminary return review and status checking on smartphones. Full filing still requires desktop/laptop access with DSC setup.

Change 8: Critical Amendment: Income Tax Act, 2025 Implementation from 1st April 2026

Important Deadline: The Income Tax Act, 1961 will be repealed and replaced by the Income Tax Act, 2025 effective from 1st April 2026. All correction statements for FY 2018-19 to FY 2024-25 must be filed BEFORE 31st March 2026. From 1st April 2026 onwards, no further corrections will be possible under the two-year limitation rule in the new Act. This is a one-time opportunity to correct all historical errors.

Change 9: Correction Statements Within 3 Days of Filing

Organizations can now make corrections to TDS returns within 3 days of filing online through the TRACES portal. This provides a quick window to fix minor errors without filing full amended returns. Use the "Request for Correction" feature under the Defaults section on TRACES.

Change 10: Form 16-B Utility Version 1.6

The new utility version 1.6 for generating Form 16 Part-B has been rolled out. Download the latest version from the TRACES portal to ensure compliance with updated certificate generation requirements for FY 2025-26.

Critical Alert: With the transition to the Income Tax Act, 2025 on 1st April 2026, this is your LAST opportunity to correct TDS errors from previous years. Check TRACES immediately for any pending demands (in the "Defaults" section) and file correction statements before 31st March 2026. Missed corrections cannot be rectified after this date.

Note: Check the official TRACES portal (https://www.tdscpc.gov.in) and Income Tax Department website (https://www.incometax.gov.in) regularly for announcements of new changes, system updates, or deadline extensions during the financial year.

Frequently Asked Questions (FAQs) on Quarterly TDS Return Filing

What is the deadline for filing quarterly TDS returns for FY 2025-26?

Quarterly TDS return filing deadlines for FY 2025-26 are: Q1 (30th April 2025), Q2 (31st July 2025), Q3 (31st October 2025), and Q4 (31st May 2026). Q4 also requires issuance of annual Form 16/16A by 15th June 2026. Filing after these dates attracts penalties starting from ₹500 under Section 271C.

Can I file a quarterly TDS return if I deducted zero TDS during that quarter?

Yes, you can and should file a "nil" quarterly return showing zero deductions. This is optional but highly recommended as it demonstrates compliance and creates an audit trail. Filing nil returns protects you from IT Department notices questioning non-filing and establishes a pattern of organizational compliance.

What happens if I miss the quarterly TDS filing deadline?

Late filing attracts penalties under Section 271C: minimum ₹500 or 10% of TDS amount (whichever is higher) for 1-30 days delay, and ₹1,000 or 10% for 31+ days delay. Additionally, deductees may face delays in claiming TDS credit on their personal returns. If IT Department issues a notice and you fail to file, prosecution action is possible.

Is a digital signature (DSC) mandatory for filing quarterly TDS returns?

Yes, all quarterly TDS returns must be signed with a valid Digital Signature Certificate (Class II or Class III). The DSC must be valid on the filing date. You can authorize a Chartered Accountant, Company Secretary, or other qualified professional to file on your behalf using their DSC, but your organization remains responsible for accuracy.

What if PAN or Aadhaar details of a deductee are incorrect in my quarterly return?

If you discover incorrect PAN/Aadhaar after filing, file an amended/revised return within the same financial year or within 30 days of discovering the error. Use the TRACES "Revised Return" feature. Contact the affected deductee immediately to issue a corrected certificate. Mismatches between returns and deductee records trigger IT Department notices.

Must I deposit TDS before filing the quarterly return?

No, TDS deposit and return filing are separate obligations with different deadlines. TDS must be deposited by the 7th of the following month (e.g., April deductions by 7th May). However, before filing the quarterly return, verify that all TDS deposits have been made and reconcile deposited amounts with return amounts to avoid mismatches.

When must I issue Form 16/16A to deductees after quarterly filing?

For salaried employees, Form 16 (annual certificate) must be issued by 15th June 2026 at the latest. Quarterly certificates are optional but can be issued after each quarter for transparency. Form 16A (for non-salary deductees) must also be issued by 15th June 2026. Delayed issuance attracts Section 272B penalties up to ₹1,000 per deductee.

Can I file an amended quarterly TDS return after the deadline has passed?

If you discover errors within the same financial year (by 31st March 2026), you can file a revised return within 30 days of discovery. After the financial year ends, you can only file amended returns if the IT Department issues a notice under specific provisions. Amended filings may still attract reduced penalties if errors are self-disclosed.

What is the penalty for not issuing TDS certificates to deductees within the deadline?

Failure to issue Form 16/16A within the prescribed deadline (15th June 2026) attracts penalties under Section 272B: up to ₹1,000 per deductee. Additionally, deductees cannot claim TDS credit on their personal returns without these certificates, which may trigger IT Department assessments against them, creating disputes and follow-up liabilities.

How do I verify if my quarterly TDS return was filed successfully on TRACES?

Log into your TRACES account (https://www.taxcollectedatsource.gov.in) with your TAN and check the "Return Status" or "Filed Returns" section. A successfully filed return shows status as "Acknowledged" or "Filed" with a unique Acknowledgment Reference Number (ARN). Download and save the filed return summary and JSON/XML file for record-keeping, audit, and reference.

What is the critical deadline for filing correction statements under the new Income Tax Act, 2025?

The Income Tax Act, 1961 will be replaced by the Income Tax Act, 2025 from 1st April 2026. All correction statements for historical years (FY 2018-19 to FY 2024-25) must be filed BEFORE 31st March 2026. After this date, corrections will be permanently closed with no legal avenue to rectify them. Check your TRACES Defaults section immediately for any pending TDS demands and file corrections urgently.

Conclusion: Ensuring Smooth Quarterly TDS Compliance for FY 2025-26

Quarterly TDS return filing is a critical and ongoing compliance responsibility throughout the financial year. Unlike annual returns that require submission once per year, quarterly filing demands four separate submissions with strict deadlines (30th April, 31st July, 31st October, and 31st May). Missing even one quarterly deadline attracts penalties and triggers IT Department notices that can complicate your compliance records.

The key to successful quarterly TDS compliance lies in planning, preparation, and timely execution. Establish a quarterly compliance calendar, maintain organized records, reconcile data regularly, and file returns well before each deadline. By following the step-by-step process outlined in this guide—from data collection and categorization to filing on TRACES and issuing certificates—you ensure error-free compliance and demonstrate organizational integrity to tax authorities.

Remember that quarterly TDS compliance is not just a legal obligation but a critical responsibility toward your deductees (employees, contractors, vendors) who depend on accurate TDS certificates to claim credit on their personal returns. Additionally, maintaining a clean compliance record with the IT Department protects your organization from penalties, notices, investigations, and potential disqualification from government contracts.

Final Reminder for March 2026: Before 31st March 2026, log into TRACES, download your Justification Report, check the Defaults section for any pending TDS demands, and file all pending correction statements. After 1st April 2026, the new Income Tax Act takes effect and corrections will no longer be possible. This is a one-time opportunity to resolve all historical TDS compliance issues.