Master checklist for quarterly TDS return filing (Form 24Q, 26Q, 27Q), late fees under Section 234E, interest math under Section 201(1A), and TRACES Form 16/16A issuance.
In This Article
5 SectionsFor corporate entities, partnership firms, and individual taxpayers subject to tax audit in Raipur, Bhilai, and Kalahandi, complying with Tax Deducted at Source (TDS) regulations is a continuous monthly and quarterly obligation.
Missing a TDS deposit deadline or delaying quarterly return submissions triggers mandatory late fees, interest charges, and potential disallowance of expenditure under Section 40(a)(ia) of the Income Tax Act.
Key Rule of TDS Compliance: TDS must be deposited into the government account by the 7th of the following month (except for March TDS, which can be deposited by 30th April). Quarterly return statements must follow within the subsequent month.
1. Master Schedule: TDS Forms & Statutory Filing Due Dates
| Form | Purpose / Payment Type | Quarter Period | Filing Due Date |
|---|---|---|---|
| Form 24Q | Quarterly Return for Salaries | Q1 (Apr–Jun)Q2 (Jul–Sep)Q3 (Oct–Dec)Q4 (Jan–Mar) | 31st July31st October31st January31st May |
| Form 26Q | Quarterly Return for Non-Salary Payments (Contractors, Rent, Professional Fees) | Q1 (Apr–Jun)Q2 (Jul–Sep)Q3 (Oct–Dec)Q4 (Jan–Mar) | 31st July31st October31st January31st May |
| Form 27Q | Quarterly Return for Payments to Non-Residents / NRIs | All Quarters | Same as 26Q |
| Form 26QB | Challan-cum-Statement for TDS on Property Purchase (Section 194-IA) | Within 30 days from end of month of payment | 30 Days |
| Form 26QC | TDS on Rent of Property > Rs. 50,000/month (Section 194-IB) | Within 30 days from end of month of payment | 30 Days |
2. Interest Math under Section 201(1A): Late Deduction vs. Late Payment
Section 201(1A) levies interest for non-deduction or non-payment of TDS. The interest rates and calculation methods differ significantly:
A. Interest for Late Deduction (1% per month)
- Rate: 1% per month (or part of a month).
- Period: Calculated from the date tax was deductible to the date tax was actually deducted.
B. Interest for Late Payment (1.5% per month)
- Rate: 1.5% per month (or part of a month).
- Period: Calculated from the date tax was deducted to the date tax is deposited into the government treasury.
Important Calculation Rule: Even if a delay is for a single day (e.g., depositing TDS on 8th April instead of 7th April), interest is charged for the entire full month.
Calculation Example
A contractor bill of Rs. 10,000,00 was processed on 15th May. TDS of Rs. 20,000 under Section 194C was deducted on 15th May. The tax was deposited into the bank on 12th July (due date was 7th June).
- Total months of delay: 2 Months (June and July).
- Interest = Rs. 20,000 × 1.5% × 2 months = Rs. 600.
3. Penalties under Section 234E & Section 271H
Section 234E — Mandatory Late Fee (Rs. 200 per day)
Failing to submit quarterly TDS returns (Form 24Q or 26Q) by the due date attracts an automatic, non-waivable late fee of Rs. 200 per day for every day of delay.
- The total late fee cannot exceed the total amount of TDS deductible for that quarter.
- The late fee must be paid via Challan ITNS 281 before uploading the delayed return on the portal.
Section 271H — Penalty for Delay Exceeding 1 Year
If a deductor fails to file the quarterly TDS return for more than 1 year from the due date, or submits incorrect information, the Assessing Officer can levy a penalty under Section 271H ranging from Rs. 10,000 to Rs. 1,000,000.
4. Expenditure Disallowance under Section 40(a)(ia)
For commercial businesses in Chhattisgarh and Odisha, failing to deduct or deposit TDS on resident payments results in severe tax penalties under Section 40(a)(ia):
- 30% Disallowance: 30% of the expenditure (e.g., contractor payments, sub-contracting charges, interest, professional fees, or transport freight) will be disallowed and added back to your net business profit.
- Recovery in Later Years: The disallowed expenditure is allowed as a deduction in the financial year in which the TDS is actually paid to the government.
5. Downloading & Issuing Form 16 / 16A from TRACES
[File Quarterly TDS Return] ➔ [Process at CPC-TDS] ➔ [Download Text File from TRACES] ➔ [Issue Form 16 / 16A]
Deductors cannot create custom Form 16 or 16A certificates on Excel or Word. All valid certificates must be downloaded directly from the official TRACES portal (tdscpc.gov.in) carrying the TRACES watermark and verification code.
- Form 16 (Salary): Must be issued to employees annually by 15th June.
- Form 16A (Non-Salary): Must be issued quarterly within 15 days from the due date of filing the quarterly TDS return.
End-to-End TDS Compliance Services
Our direct tax practice at Rabi Agrawal & Associates handles monthly TDS calculations, Challan 281 deposits, Form 24Q/26Q quarterly filings, TRACES Form 16/16A generation, Section 234E late fee rectifications, and TDS correction statements for businesses across Raipur and Kalahandi.
Contact our tax team at Raipur Head Office or Jayapatna Branch for TDS review and return support.
Authored by CA Rabi Agrawal & Practice Team
Rabi Agrawal & Associates, Chartered Accountants — Head Office Raipur (CG), Branch Office Jayapatna (Odisha).