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TDS / TCS Return Filing

  • Statutory compliance under the Income-tax Act
  • Avoids late fees, interest, and penalties
  • Ensures correct credit of TDS/TCS to deductees
  • Prevents mismatch notices and defaults
  • Mandatory for TAN holders and collectors
  • Essential for vendor, employee, and customer confidence
  • Smooth reconciliation with Form 26Q / 26AS / AIS

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7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Experience Icon

7 Years

Of Experience

Cases Solved Icon

3622 +

Cases Solved

Awards Gained Icon

10 +

Awards Gained

Trusted Clients Icon

144 k +

Trusted Clients

Queries Solved Icon

36 k+

Queries Solved

Overview

TDS Return Filing and TCS Income Compliance is a mandatory quarterly obligation for
persons who deduct or collect tax at source under the Income-tax Act.
  • TDS (Tax Deducted at Source) applies when tax is deducted while making specified payments
  • TCS (Tax Collected at Source) applies when tax is collected at the time of sale or receipt
Filing TDS/TCS returns ensures that:
  • Taxes deducted or collected are properly reported
  • Credit reflects correctly in the deductee’s Form 26AS and AIS
  • Compliance records remain clean with the Income Tax Department
Non-filing or incorrect filing leads to automatic fees, interest, and default notices.

Who Is Required to File TDS / TCS Returns?

You must file returns if you:
  • Are an employer deducting TDS on salary
  • Make payments to contractors, professionals, or vendors
  • Deduct TDS on rent, interest, commission, or brokerage
  • Collect TCS on sale of goods, scrap, or specified items
  • Are required to deduct TDS under Sections 194, 194C, 194J, 194Q, 194I, etc.
  • Are liable to collect TCS under Sections 206C(1), 206C(1H), etc.
Holding a TAN generally makes filing mandatory, even if no deduction occurred.

TCS Income – Key Compliance Areas

TCS commonly applies to:
  • Sale of goods exceeding prescribed thresholds
  • Scrap sales
  • Timber, minerals, and specified goods
  • Section 206C(1H) – Sale of goods beyond threshold limits
Key points:
  • TCS must be collected at receipt
  • Deposited within prescribed timelines
  • Reported quarterly in Form 27EQ
Mismatch between books, GST data, and TCS returns is a high-risk scrutiny area.

Documents Required for TDS / TCS Return Filing

To file TDS or TCS returns accurately, keep the following ready:
Documents
  • 1 TAN and PAN of deductor / collector
  • 2 PAN of deductees / collectees
  • 3 Challan details (BSR code, challan number, date)
  • 4 Salary breakup and Form 16 details (for Form 24Q)
  • 5 Vendor invoices and payment details
  • 6 TDS/TCS deduction working
  • 7 Lower / nil deduction certificates (if any)
  • 8 Previous quarter return (for correction consistency)

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Comparison

Parameters Form Purpose
Form 24Q TDS on salary
Form 26Q TDS on non-salary payments
Form 27Q TDS on payments to nonresidents
Form 27EQ TCS return

Interest, Fees, and Penalties

Non-compliance may result in:

Late fee: ₹200 per day (Section 234E), subject to limits
Interest for late deduction or late deposit
Penalty for incorrect PAN or non-filing
Notices for mismatch with Form 26AS / AIS
Disallowance of expenses in income-tax assessment

How We Work

Step 01

Compliance & Liability Review

Step 02

Data and Challan Collection

Step 03

Return Preparation & Validation

Step 04

Filing or Correction Submission

Step 05

Post-Filing Default Resolution Support

Common Errors and Mistakes

01

Non-filing due to “no deduction” assumption

02

Wrong return form selection

03

Incorrect PAN or challan mapping

04

Mismatch between TDS deposited and return filed

05

Ignoring correction statements

06

Delay in issuing Form 16 / 16A

Q1 (Apr–Jun): 31 July
Q2 (Jul–Sep): 31 October
Q3 (Oct–Dec): 31 January
Q4 (Jan–Mar): 31 May

FAQs

Is TDS return filing mandatory if no tax was deducted?

Yes, in many cases, a NIL return is still required.

What happens if PAN of deductee is wrong?
Can past TDS returns be corrected?
Is TCS different from GST?
Is Form 27Q required for all foreign payments?

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What Our Clients Say

Discover what our satisfied clients have to say about their experience working with us

Sandeep Reddy
Founder, Retail Trading Business
" ARK Advisors made our audit process smooth and stress-free. Clear checklist, timely follow-ups, and very practical guidance. "
Anusha Sharma
Partner, Professional Services Firm
" Their team quickly identified compliance gaps and suggested actionable fixes. Reporting was crisp and easy for management to understand. "
Rohit Kulkarni
CFO, Manufacturing Unit
" We got strong process recommendations and control improvements. The audit insights genuinely helped us reduce leakage and improve discipline. "
Meghana Rao
Director, Startup
" Professional, responsive, and very transparent. They explained everything in simple terms and kept the entire process on schedule. "
Imran Khan
Owner, Hospitality Business
" The team ensured our documentation was audit-ready and supported us throughout. Great experience and strong attention to detail. "

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