Challan Matching First
We reconcile BSR code, serial number and date against OLTAS before the return is prepared — the most common source of CPC-TDS demand notices.
Quarterly TDS/TCS return filing with challan reconciliation, RPU preparation, FVU validation and TRACES upload. Salary, non-salary, non-resident and TCS returns handled accurately . Avoid ₹200/day late fees and demand notices.
Fill out the form to consult our TDS specialists and start your quarterly filing.
Income Tax Department — sample acknowledgement / certificate
Illustrative sample. Your official certificate is issued after approval.
TDS (Tax Deducted at Source) is a pay-as-you-earn system. The payer (deductor) deducts tax at the time of payment and deposits it with the government. Filing TDS returns is the quarterly obligation of reporting all deductions made during the quarter, along with challan details and deductee information.
Every company, LLP, partnership firm and certain individuals who deduct TDS must file the prescribed quarterly returns (Form 24Q, 26Q, 27Q or 27EQ). Accurate filing requires TAN of the deductor, PAN of all deductees, correct section codes, and perfect matching of Challan 281 details (BSR code, serial number, date). Errors lead to demand notices from CPC-TDS and potential expense disallowance under Section 40(a)(ia).
Each form covers a specific category of deductions. Most businesses need to file at least two every quarter.
| Form | Used For | Key Details |
|---|---|---|
| Form 24Q | TDS on Salary | Employee salary details, tax computation, exemptions, deductions. Q4 requires detailed Annexure II with employee-wise salary breakup. |
| Form 26Q | TDS on Non-Salary (Residents) | Contractor, rent, professional fees, interest, commission and other payments to resident deductees. Highest-volume return for most companies. |
| Form 27Q | TDS on Non-Residents | Payments to non-residents and foreign companies under Section 195 and related sections. |
| Form 27EQ | TCS Collection | Tax Collected at Source on sale of specified goods, foreign remittances and other TCS provisions. |
TDS deducted during any month must be deposited by the 7th of the following month (30 April for March deductions).
| Quarter | Period | Return Due Date (Non-Govt) |
|---|---|---|
| Q1 | April – June | 31 July |
| Q2 | July – September | 31 October |
| Q3 | October – December | 31 January |
| Q4 | January – March | 31 May |
| Section | Nature of Payment | Threshold | TDS Rate |
|---|---|---|---|
| 192 | Salary | Basic exemption limit | Average slab rate |
| 194A | Interest (other than securities) | ₹40,000 (₹50,000 for senior citizens) | 10% |
| 194C | Contractor (Individual/HUF) | ₹30,000 single / ₹1,00,000 aggregate | 1% |
| 194C | Contractor (Others) | ₹30,000 single / ₹1,00,000 aggregate | 2% |
| 194H | Commission & Brokerage | ₹15,000 | 5% |
| 194I(a) | Rent (Plant & Machinery) | ₹2,40,000 | 2% |
| 194I(b) | Rent (Land, Building, Furniture) | ₹2,40,000 | 10% |
| 194J | Professional / Technical Fees | ₹30,000 | 10% (2% for certain call-centre services) |
| 194Q | Purchase of Goods | ₹50 lakh | 0.1% |
| 194-IA | Purchase of Immovable Property | ₹50 lakh | 1% |
TAN is mandatory for all TDS transactions. Quote it on every challan, return and certificate. Apply via Form 49B on NSDL-TIN if you do not have one.
Identify the applicable section, verify threshold and deduct at the prescribed rate. Check PAN validity, Section 206AB non-filer status and any lower-deduction certificate under Section 197.
Deposit by the 7th of the following month through OLTAS/net banking. Record BSR code, challan serial number and date of deposit — these three fields must match in the return.
Use the free Return Preparation Utility (RPU) from Protean/NSDL. Enter deductor details, challan details and deductee records. For Form 24Q Q4, complete the full salary Annexure II.
Run the File Validation Utility to catch invalid PANs, challan mismatches, wrong section codes and duplicate records. Fix all errors until the .fvu file passes cleanly.
Log in with TAN at incometax.gov.in, select the form and quarter, upload the validated .fvu file, authenticate with DSC or EVC, and download the acknowledgement.
After CPC-TDS processing, download Form 16 / 16A from the TRACES portal and issue them within the prescribed timelines.
Use correction statements (C1–C5) on TRACES for wrong PAN, challan details, missed transactions or salary annexure updates.
Tax Deduction and Collection Account Number of the entity filing the return. Mandatory for all forms.
PAN cards of employees, vendors, contractors and professionals. Invalid PAN triggers higher TDS and FVU errors.
BSR code, challan serial number, date of deposit and amount for every TDS deposit made during the quarter.
Gross amount paid, TDS rate, TDS amount, section code and date of payment/credit for each transaction.
Employee-wise gross salary, exemptions, Chapter VI-A deductions and tax computation — especially detailed Annexure II for Q4.
Digital Signature Certificate (DSC) or Electronic Verification Code (EVC) for e-filing the return.
| Default | Section | Penalty / Consequence |
|---|---|---|
| Non-deduction of TDS | 201(1A) | Interest at 1% per month from due date of deduction |
| Late deposit of TDS | 201(1A) | Interest at 1.5% per month from deduction to deposit |
| Late filing of return | 234E | ₹200 per day (capped at total TDS amount) |
| Failure to file / incorrect return | 271H | ₹10,000 to ₹1,00,000 |
| Expense disallowance | 40(a)(ia) | 30% of the payment disallowed as business expense |
| Non-issuance of TDS certificate | 272A(2)(g) | ₹100 per day per certificate (capped at TDS amount) |
We reconcile BSR code, serial number and date against OLTAS before the return is prepared — the most common source of CPC-TDS demand notices.
194C vs 194J, 194I rates, 206AA/206AB higher rates — section and rate applied correctly so shortfall notices are avoided.
Return prepared in the official RPU and validated through FVU until zero errors, then uploaded with DSC/EVC.
Support for Form 16/16A download timelines and correction statements (C1–C5) when errors are discovered after filing.
Q1 (Apr–Jun): 31 July · Q2 (Jul–Sep): 31 October · Q3 (Oct–Dec): 31 January · Q4 (Jan–Mar): 31 May. TDS must still be deposited by the 7th of the following month (30 April for March).
Form 24Q is for TDS on salary payments. Form 26Q is for all non-salary TDS payments to resident deductees (contractors, professionals, rent, interest, commission, etc.).
₹200 per day under Section 234E, capped at the total TDS amount for that return. Additional penalty under Section 271H (₹10,000–₹1,00,000) can apply for failure to file or incorrect returns.
CPC-TDS matches every challan in the return against OLTAS bank data using BSR code, serial number and date. Any mismatch creates a demand notice even if the tax was correctly deposited.
Within 15 days from the due date of the TDS return for that quarter. Form 16 (annual salary certificate) must be issued by 15 June following the end of the financial year.
Interest under Section 201(1A) at 1% per month, possible expense disallowance of 30% under Section 40(a)(ia), and further interest and penalties. The deductee also loses the TDS credit in their return.
Yes. Correction statements (C1 to C5) can be filed on the TRACES portal for updates to deductor details, challans, deductee records, salary annexure or PAN corrections.
DSC or EVC is required for authentication on the e-filing portal. Companies and many other deductors typically use DSC; EVC via net banking or Aadhaar OTP is also available in eligible cases.
Comprehensive support: challan reconciliation, RPU preparation, FVU validation, portal upload and certificate support for Form 24Q, 26Q, 27Q and 27EQ.
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