TDS & TCS Return Filing in Delhi
Every business or individual required to deduct tax at source — on salaries, professional fees, contractor payments, rent, or commission — must deposit that tax with the government and file a quarterly return reporting it, correctly and on time, or face interest, late fees, and disallowance of the related expense in their own tax return. Justsetu LLP manages TDS/TCS deduction computation, monthly challan deposit, and quarterly return filing so your compliance stays current and your deductees’ Form 26AS/AIS reflects the correct credit.
What Is TDS and TCS?
Tax Deducted at Source (TDS) requires the payer to deduct tax before making specified payments (salary, rent above a threshold, professional fees, contractor payments, interest, commission, and more) and deposit it with the government, issuing a TDS certificate to the payee. Tax Collected at Source (TCS) works in reverse — a seller collects tax from the buyer at the time of sale of specified goods or receipt of payment above prescribed thresholds and deposits it with the government.
Recent Change: New Return Form Numbers (Effective FY 2026-27)
Following the Income-tax Act, 2025, the familiar TDS/TCS return form numbers have been renumbered from the first quarter of FY 2026-27: Form 24Q (salary TDS) is now Form 138, Form 26Q (resident non-salary TDS) is now Form 140, Form 27Q (non-resident payments TDS) is now Form 144, and Form 27EQ (TCS) is now Form 143. The quarterly filing structure and due dates otherwise continue as before.
Filing Due Dates
Quarterly TDS/TCS returns are generally due as follows: Q1 (April–June) by 31 July; Q2 (July–September) by 31 October; Q3 (October–December) by 31 January; and Q4 (January–March) by 31 May. Tax deducted each month must be deposited by the 7th of the following month (30 April for the month of March), well ahead of the quarterly return.
Documents/Information Required
- PAN and TAN of the deductor.
- PAN of all deductees.
- payment and deduction details for each transaction (salary, contractor, rent, professional fee, etc.).
- challan details of tax already deposited.
- and, for salary TDS, employee declarations for exemptions and deductions claimed.
Process
- Computing TDS/TCS liability transaction-wise for the period, applying the correct section and rate.
- Depositing tax through the online challan (ITNS 281) before the monthly due date.
- Preparing and validating the quarterly return using the correct form (Form 138/140/143/144) and filing it on the TRACES/Income Tax portal.
- Generating TDS certificates (Form 16 for salary, Form 16A for other payments) for deductees after each quarter.
- Reconciling deductee PAN and credit against Form 26AS/AIS to avoid mismatch notices.
Penalties for Non-Compliance
Late deposit of TDS attracts interest, late filing of the return attracts a fee for every day of delay (subject to a cap equal to the TDS amount), and incorrect PAN quoting or continued default can lead to disallowance of the expense in the payer’s own income tax computation and prosecution in serious cases.
Why Justsetu LLP
We track your TDS obligations against every category of payment you make — not just salary and rent — because the sections that get missed most often (professional fees, commission, contractor payments to individuals) are exactly where notices originate.
Frequently Asked Questions
Form 24Q is now Form 138, Form 26Q is now Form 140, Form 27Q is now Form 144, and Form 27EQ is now Form 143, following the Income-tax Act, 2025.
31 July for Q1, 31 October for Q2, 31 January for Q3, and 31 May for Q4.
A late filing fee accrues for every day of delay under Section 234E, capped at the amount of TDS deductible for that return, in addition to interest for late deposit of the tax itself.
Any person or business responsible for making specified payments above the prescribed threshold — including salary, rent, professional fees, contractor payments, and interest — must deduct TDS, subject to exemptions for certain categories of deductors.
Form 16 is the annual TDS certificate issued to employees for salary TDS; Form 16A is issued for TDS deducted on payments other than salary, such as professional fees, rent, or contractor payments.
Yes, if the tax deducted exceeds the deductee’s actual tax liability for the year, the excess can be claimed as a refund by filing an income tax return.
TDS must be deducted at a higher rate (typically 20% or the applicable rate, whichever is higher) if the deductee does not furnish a valid PAN.
No, TCS applies only to specified categories — such as sale of certain goods above prescribed value, sale of motor vehicles above a threshold, and specified foreign remittances — not to general sales.
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