1. Mandatory E-Filing Requirement
- All tax deductorsmust electronically file quarterly TDS statements
- Applies to:
- Corporate deductors
- Non-corporate deductors (if required to audit accounts u/s 44AB)
- Government offices
2. Statement Due Dates
| QUARTER | PERIOD COVERED | DUE DATE |
| Q1 | April-June | 31st July |
| Q2 | July-September | 31st October |
| Q3 | October-December | 31st January |
| Q4 | January-March | 31st May |
3. Required Forms
| NATURE OF PAYMENT | FORM |
| Salaries | 24Q |
| Non-salary payments to residents | 26Q |
| Payments to non-residents | 27Q |
| Tax Collected at Source | 27EQ |
4. Key Information to Include
- Deductor details(TAN, name, address)
- Deductee details(PAN, name, amount paid)
- Tax deducted(amount and date)
- Challan information(BSR code, deposit date)
5. Digital Compliance Features
- Must be filed through:
- NSDL TIN website or
- Authorized TIN-FCs
- Digital signaturesrequired for:
- Companies
- Deductors filing > 20 deductee records
6. Consequences of Non-Filing
- Late fees: ₹200/day (u/s 234E) until filed
- Penalty: ₹10,000-₹1,00,000 (u/s 271H)
- Interest: 1.5% monthly on late deposits
- Prosecution riskfor willful default (u/s 276B)
7. Recent Updates (2023-24)
- Mandatory AIS reconciliationbefore filing
- New validationsfor PAN-Aadhaar linkage
- Enhanced error detectionat filing stage
8. Best Practices
- Pre-filing checks:
- Verify all PANs
- Reconcile with bank statements
- Match with Form 26AS
- Post-filing actions:
- Download provisional receipt
- Issue Form 16A within deadlines
- Track processing status on TRACES
- Quarterly compliance calendar:
- Month 1: Data collection
- Month 2: Reconciliation
- Month 3: Filing
Pro Tip: Use the TDS Reconciliation Analysis and Correction Enabling System (TRACES) for:
- Generating correction statements
- Viewing defaults
- Downloading consolidated files
This provision ensures systematic reporting of all TDS deductions to the tax authorities, enabling proper tax credit to deductees and maintaining transparency in the tax collection system. Regular internal audits of TDS processes can help avoid compliance lapses.
