How to File TDS Return Online — TDS Rates, Due Dates & Form 26AS

TDS (Tax Deducted at Source) is one of the most common ways the Indian government collects income tax. Whether you're a salaried employee, freelancer, or business owner, understanding TDS is essential. This guide covers everything — TDS rates, how to file TDS returns, quarterly due dates, checking Form 26AS, and claiming refunds.

What Is TDS (Tax Deducted at Source)?

TDS is a system where the person making a payment (employer, bank, client) deducts tax at the time of payment and deposits it with the government on your behalf. It ensures tax is collected at the source of income rather than at the end of the year.

Example: If your employer pays you ₹50,000 salary per month and your TDS rate is 10%, they deduct ₹5,000 and pay you ₹45,000. The ₹5,000 goes directly to the Income Tax Department.

Who Deducts TDS?

Important: Every deductor (except individuals/HUFs not subject to audit) must have a TAN (Tax Deduction Account Number) to deduct and deposit TDS.

TDS Rates Table (FY 2025-26 / AY 2026-27)

Here are the key TDS rates applicable for common types of payments:

Note: If the payee does not provide their PAN, TDS is deducted at 20% or the applicable rate, whichever is higher. Under Section 206AB, non-filers of ITR may face TDS at double the prescribed rate.

How to Avoid TDS (Legally)

• Form 15G/15H: If your total income is below the taxable limit, submit Form 15G (below 60 years) or Form 15H (senior citizens 60+) to the bank/deductor to avoid TDS on interest income.
• Lower Deduction Certificate: Apply for a certificate under Section 197 via the income tax portal if your actual tax liability is lower than TDS being deducted.

TAN Registration for Deductors

If you're a business or employer who needs to deduct TDS, you must first get a TAN (Tax Deduction and Collection Account Number).

How to Apply for TAN

1. Visit NSDL TIN website or the income tax portal
2. Fill Form 49B online
3. Pay the application fee (approximately ₹65 + GST)
4. Submit — TAN is allotted within 5–7 working days

How to File TDS Return Online

TDS returns are filed quarterly by the deductor (employer, business, bank) — not by the employee or payee. Here's how:

Step 1: Gather Required Information

• TAN of the deductor
• PAN of all deductees (employees, vendors, etc.)
• Challan details of TDS deposited with the government
• Details of payments made and TDS deducted during the quarter

Step 2: Choose the Correct TDS Return Form

Step 3: Prepare the TDS Return

Use the RPU (Return Preparation Utility) provided free by NSDL/Protean:

1. Download RPU from Protean (NSDL) TIN website
2. Enter deductor details, deductee details, challan information
3. Validate the return using the FVU (File Validation Utility)
4. Generate the .fvu file

Step 4: File on TRACES / Income Tax Portal

Option A — Via TRACES (tdscpc.gov.in):

1. Visit TRACES portal
2. Log in with your TAN, user ID, and password
3. Go to Upload TDS Statement
4. Upload the validated .fvu file
5. Sign with DSC (Digital Signature Certificate) or use the e-verification option
6. Note the Token Number — this is your filing confirmation

Option B — Via Income Tax e-Filing Portal:

1. Visit incometax.gov.in
2. Log in with TAN credentials
3. Navigate to e-File > Income Tax Forms > File TDS Return
4. Upload the .fvu file and submit

Step 5: Verify Filing Status

After upload, check the status on TRACES:

• Go to Statements / Payments > Statement Status
• Enter the Token Number to track processing

TDS Return Quarterly Due Dates

TDS returns must be filed every quarter. Here are the due dates:

Late filing penalty: Under Section 234E, a fee of ₹200 per day is charged for delay (capped at the total TDS amount). Additional penalty under Section 271H (₹10,000 to ₹1,00,000) may also apply.

TDS Deposit Due Dates

TDS deducted must be deposited to the government by:

Government deductors can deposit TDS on the same day it is deducted (without using a challan).

How to Check TDS Status — Form 26AS

Form 26AS is your Annual Tax Statement. It shows all TDS deducted against your PAN during the financial year. Always check it before filing your income tax return.

How to View Form 26AS

Method 1 — Income Tax Portal (Recommended):

1. Visit incometax.gov.in
2. Log in with your PAN and password
3. Go to e-File > Income Tax Returns > View Form 26AS
4. You'll be redirected to the TRACES portal
5. Select the Assessment Year and format (HTML/PDF)
6. View or download your Form 26AS

Method 2 — AIS (Annual Information Statement):

The AIS has largely replaced Form 26AS and provides more detailed information:

1. Log in to incometax.gov.in
2. Go to Services > Annual Information Statement (AIS)
3. View TDS details, interest income, dividends, and other financial transactions

What Form 26AS Contains

• Part A: TDS deducted by employers, banks, and other deductors
• Part B: Tax Collected at Source (TCS)
• Part C: Tax paid by you (advance tax, self-assessment tax)
• Part D: Refunds received
• Part F: Details of specified financial transactions (SFT)

Tip: If TDS shown in Form 26AS doesn't match your records, contact the deductor immediately to file a correction.

How to Download Form 16 and Form 16A

Form 16 (TDS on Salary)

Your employer issues Form 16 after the financial year ends. It contains:

• Part A: TDS certificate with deduction and deposit details
• Part B: Detailed salary breakup, exemptions, and tax computation

If your employer hasn't given it:

1. Request from your HR/payroll department
2. Employers can download Part A from TRACES and must issue it by 15th June every year

Form 16A (TDS on Non-Salary Payments)

For TDS on FD interest, rent, professional fees, etc., the deductor issues Form 16A.

How deductors download Form 16A from TRACES:

1. Log in to TRACES with TAN
2. Go to Downloads > Form 16A
3. Select the quarter and request the download
4. Must be issued within 15 days from the due date of filing TDS return

How to Claim TDS Refund

If more TDS has been deducted than your actual tax liability, you can claim a refund by filing your income tax return.

Steps to Claim TDS Refund

1. Collect all Form 16/16A from your deductors
2. Verify Form 26AS/AIS — ensure all TDS entries are reflected
3. File your Income Tax Return (ITR) on incometax.gov.in
4. Declare all income and claim deductions (80C, 80D, HRA, etc.)
5. The system will calculate if you have a refund due
6. e-Verify your return (Aadhaar OTP, net banking, or DSC)
7. Refund is credited to your bank account linked to PAN (usually within 30–45 days of e-verification)

Track refund status: Log in to incometax.gov.in > Services > Know Your Refund Status, or check on tin-nsdl.com.

Common Reasons for TDS Refund Delay

• Bank account not pre-validated on the income tax portal
• Mismatch between PAN name and bank account name
• ITR not e-verified
• Defective return notice — respond and correct

How to Correct a TDS Return (Revised/Correction Statement)

Made a mistake in your TDS return? You can file a correction statement on TRACES.

Steps to File Correction

1. Log in to TRACES with TAN
2. Go to Statements / Payments > Request for Correction
3. Select the relevant Form type, Financial Year, and Quarter
4. Choose correction category:
   • C1: Personal information of deductor
   • C2: Challan correction
   • C3: Deductee details (PAN, amount, etc.)
   • C4: Salary detail (for 24Q only)
   • C5: Add/delete deductee rows
5. Download the correction file, make changes in RPU
6. Validate through FVU and upload

No time limit for filing correction statements — you can correct old returns too.

TAN Registration — Quick Summary

Common TDS Mistakes to Avoid

1. Wrong PAN of deductee — Leads to TDS not reflecting in their Form 26AS. Always verify PAN before deducting.
2. Late filing of TDS return — Attracts ₹200/day penalty under Section 234E.
3. Not depositing TDS on time — Interest at 1.5% per month is charged under Section 201(1A).
4. Deducting TDS but not depositing — This is a serious offence; can attract prosecution.
5. Ignoring Form 15G/15H — If a payee submits Form 15G/15H, do not deduct TDS. Ignoring it causes unnecessary deduction.
6. Not issuing Form 16/16A — Penalty of ₹100/day under Section 272A(2)(g).
7. Mismatch between challan and return — Ensure challan BSR code, date, and amount match exactly.
8. Not quoting TAN on challans — TDS payment won't be linked to your account.

Frequently Asked Questions

Is TDS applicable if I'm below the taxable limit?

TDS may still be deducted (e.g., on FD interest). But if your total income is below the taxable limit, submit Form 15G/15H to avoid deduction or claim a refund when filing ITR.

What's the difference between TDS and TCS?

TDS is deducted by the payer at the time of payment. TCS (Tax Collected at Source) is collected by the seller at the time of sale (e.g., on scrap, minerals, foreign remittance above ₹7 lakh).

Can I file TDS return without a Digital Signature?

Yes. You can use Aadhaar-based e-verification or an Electronic Verification Code (EVC) instead of DSC for filing on TRACES.

What if TDS is not showing in my Form 26AS?

Contact the deductor and ask them to:

• File the TDS return (if not filed)
• Correct the return (if wrong PAN was quoted)
• It typically reflects within 7–10 days of return processing

Do I need to file TDS return if no TDS was deducted?

If you have a TAN and are registered for TDS filing, you must file a NIL return even if no TDS was deducted during the quarter.

Useful Links

• Income Tax Portal — incometax.gov.in
• TRACES Portal — tdscpc.gov.in
• TAN Registration — NSDL/Protean
• View Form 26AS / Tax Credit

Related Guides

• How to File Income Tax Return Online
• How to Apply for PAN Card Online