Quarterly TDS Return Due Dates

Monthly TDS Deposit (Challan) Due Dates

Section 234E — Late TDS Return Filing (Mandatory, Non-Waivable)

Section 201(1A) — Late TDS Deposit Interest

Section 271H — Additional Penalty (AO Discretion)

• Minimum ₹10,000, maximum ₹1,00,000
• Triggered when: return filed more than 1 year late, return never filed, or incorrect information provided in return
• This is in addition to 234E — not a substitute for it
• AO has discretion — 234E is automatic and mandatory, 271H requires AO to issue a notice and order

1. 1Ensure TAN Registration on TRACES
   traces.gov.in — register as deductor using TAN. One-time setup. TAN is mandatory for most TDS returns (except 26QB and 26QC for individuals). If no TAN — apply via NSDL Form 49B online or at any TIN facilitation centre.
2. 2Download RPU (Return Preparation Utility)
   Download the latest version from TRACES or NSDL website. Free software. Available for 24Q (salary) and 26Q (non-salary). Select the correct form for your return type. Use the version applicable to the relevant financial year.
3. 3Fill Deductee-Wise Data in RPU
   For each deductee (contractor, professional, landlord): PAN, name, amount paid, TDS deducted, section (194C/194J etc.), challan details (BSR code, challan serial number, date, amount). PAN accuracy is critical — wrong PAN means deductee gets no credit. Verify each PAN at incometax.gov.in before entering.
4. 4Validate Using FVU (File Validation Utility)
   RPU generates a .txt file — import into FVU (also free, from NSDL). FVU validates the data and reports errors. Fix all errors. Clean validation produces a .fvu file — this is what gets uploaded to TRACES.
5. 5Upload on TRACES Portal
   traces.gov.in → Login with TAN → TDS → Upload TDS → Select quarter and form type → Upload the .fvu file → Authenticate via Digital Signature Certificate (DSC) or Electronic Verification Code (EVC).
6. 6Save Acknowledgment Token Number
   After successful upload — a provisional receipt with a Token Number is generated. Save this — it is your proof of filing. After processing (typically 3–7 days), status changes to “Processed” on TRACES. Download the final acknowledgment.
7. 7Generate and Issue TDS Certificates
   After return is processed — download Form 16A (non-salary) from TRACES. Do not issue handwritten or self-prepared certificates — only TRACES-generated certificates are valid. Issue to deductees within 15 days of the quarterly return due date.

Common Causes of AIS Mismatch

• Deductee’s PAN entered incorrectly — one digit wrong, transposed digits
• Amount mismatch — TDS amount in return differs from actual deduction
• Wrong section selected — 194C instead of 194J, or vice versa
• TDS return not filed — deductee’s AIS shows nothing
• Challan details wrong — BSR code, challan serial number, or date incorrectly entered
• Challan mapped to wrong deductee in return

Four Steps to Resolve AIS Mismatch

1. Identify the specific mismatch — compare your return data against AIS entry. Is it PAN, amount, section, or challan that differs?
2. File a correction statement on TRACES — C1 (deductee details like PAN correction), C3 (challan correction), or C9 (new challan addition). Each type handles different errors.
3. Allow processing time — correction returns take 7–10 working days to process and reflect in AIS. Deductee must wait for the correction to appear before their ITR credit is validated.
4. Reply on e-Proceedings if notice received — incometax.gov.in → e-Proceedings → submit response with correction return acknowledgment and supporting challan/payment documentation.

This is the most commonly missed TDS obligation for individuals. If you are buying any immovable property (flat, plot, commercial space) for ₹50 lakh or above — you must deduct 1% TDS from the payment to the seller and deposit it via Form 26QB.

1. Missing quarterly return deadline despite timely deposit: The Delhi contractor’s mistake. Deposited TDS on time but filed Q2 return 45 days late = ₹9,000 in non-waivable 234E fees. Set four calendar reminders: July 31, October 31, January 31, May 31. These four dates cover an entire year’s TDS return compliance.

2. Wrong PAN for deductee: Causes the deductee to receive no credit in AIS, leading to demands on them and a correction return obligation on you. Before submitting any return — verify every PAN at incometax.gov.in → Verify PAN. Takes 30 seconds per PAN. Saves months of correction process.

3. Challan details entered incorrectly: BSR code, challan serial number, or date entered wrong in RPU — creates a mismatch that cannot be resolved without a correction return. Keep the original challan receipt open on screen while entering data in RPU. Do not enter from memory.

4. Wrong section selected: Paying an IT consultant and selecting 194C (contractor, 2%) instead of 194J technical services (2% is actually the same — but professional services like doctors, lawyers, CAs require 194J at 10%). Section error requires a correction return and potentially additional TDS payment. When in doubt about classification — consult CA before payment, not after.

5. Not issuing Form 16A within the deadline: Return filed, return processed, but Form 16A generation and distribution to contractors/professionals delayed by weeks. ₹100/day penalty and — more practically — contractors who cannot file their own ITR until they receive it call repeatedly. Generate and distribute Form 16A within 5 days of return processing, not on the last possible day.

6. Ignoring Lower TDS Deduction Certificate (Form 13): If a deductee has obtained a certificate from the AO allowing lower or nil TDS deduction — and they submit it to you — you must honour it. Deducting at the standard rate despite a valid Form 13 makes you liable for the excess deducted. Check Form 13 validity (deductee name, PAN, period, certificate number) before applying it — but do apply it if valid.

7. Not filing Nil return when registered as deductor: If you are registered as a TDS deductor (have TAN) but had no TDS transactions in a quarter — a Nil return is still required. Missing a Nil return creates a “non-filer” flag in the system — notice may follow. File Nil 24Q or 26Q quarterly even in months with zero TDS transactions.