Every deductor who deducts tax at source (TDS) — and every collector who collects tax at source (TCS) — must file a quarterly statement reporting those transactions. The statements let the Income Tax Department credit the tax to each deductee’s PAN. Choosing the right form depends on the type of payment and who receives it.
The four quarterly statements
| Form | Used for | Typical examples |
|---|---|---|
| 24Q | TDS on salary | Monthly salary paid to employees |
| 26Q | TDS on payments other than salary to residents | Contractor payments, professional fees, rent, commission, interest |
| 27Q | TDS on payments to non-residents | Interest, royalty, fees or other sums paid to non-resident persons |
| 27EQ | Tax collected at source (TCS) | Collections by specified sellers, such as on scrap or certain goods |
Quarterly due dates
| Quarter | Period | TDS (24Q, 26Q, 27Q) | TCS (27EQ) |
|---|---|---|---|
| Q1 | April – June | 31 July | 15 July |
| Q2 | July – September | 31 October | 15 October |
| Q3 | October – December | 31 January | 15 January |
| Q4 | January – March | 31 May | 15 May |
Certificates you must issue
- Form 16 — annual TDS certificate for salary, issued by 15 June after the financial year.
- Form 16A — quarterly TDS certificate for non-salary payments, issued within 15 days of the statement due date.
- Form 27D — quarterly TCS certificate, issued within 15 days of the TCS statement due date.
What happens if you file late?
A late statement attracts a fee for every day of delay, capped at the amount of tax deducted or collected, and continued failure can lead to penalties. Separately, interest applies when tax is deducted late or deposited late. Late filing also delays the credit your deductees see in their tax records — a frequent source of complaints from employees and vendors.
Tips for a clean filing
- Verify every deductee PAN before filing — invalid PANs are the most common cause of defaults.
- Match each deduction to the correct challan (BSR code, challan serial number, date and amount).
- Validate the statement with the latest File Validation Utility (FVU) before uploading.
- Download and review the justification report after processing, and correct defaults quickly.