TDS Return Filing
TDS Return Filing
Professional TDS return filing support for companies, firms, LLPs, HUFs, individuals and other deductors. Use the GSTBUY TDS Smart Calculator below to estimate common withholding amounts, identify the relevant payment category and review the return-filing workflow.
Calculate TDS Before You Pay
Select the deductor type, payment type and amount. The calculator gives an indicative TDS amount and net payable amount for common rates.
TDS Rates & Major Sections
TDS is tax deducted at source by the person responsible for making a specified payment. The applicable rate is not determined simply by whether the deductor is a company, HUF or individual; it depends on the payment category, applicable provision, threshold and payee circumstances. For transactions on or after 1 April 2026, the Income Tax Department explains that the TDS provisions have been consolidated under the Income-tax Act, 2025, principally section 392 for salaries and section 393 for other specified payments. For payments or credits up to 31 March 2026, the Income-tax Act, 1961 framework continues to govern those transactions.
Payment-wise TDS Reference Table
The table below is a practical GSTBUY reference for common payment categories. It is designed to help identify the relevant area for review; it should not be treated as a substitute for checking the exact statutory provision, threshold and transaction facts.
| Payment Type | Old Act Reference* | Common Rate / Treatment | Typical Deductor | Key Check |
|---|---|---|---|---|
| Salary | 192 | Slab / estimated annual tax | Employer | Employee income, regime, declarations and annual computation |
| Contractor / sub-contractor | 194C | Commonly 1% / 2% depending on payee category | Specified persons | Contract nature, payee type and threshold |
| Commission / brokerage | 194H | Commonly 2% | Specified persons | Nature of commission and threshold |
| Rent | 194-I | Commonly 2% / 10% depending on asset/payment category | Specified persons | Plant/machinery vs land/building/furniture and threshold |
| Interest other than securities | 194A | Commonly 10% | Specified persons | Payee, payer category and threshold |
| Professional / technical fees | 194J | Commonly 2% / 10% depending on payment category | Specified persons | Nature of service and applicable threshold |
| Purchase of goods | 194Q | Commonly 0.1% subject to conditions | Specified buyers | Buyer turnover and seller/payment thresholds |
| Business benefit / perquisite | 194R | Commonly 10% | Specified persons | Benefit/perquisite nature and threshold |
| Purchase of immovable property | 194-IA | Commonly 1% | Buyer | Property consideration/stamp value and conditions |
| Rent by individual/HUF | 194-IB | Commonly 2% | Eligible individual/HUF | Applicable threshold and payer status |
| VDA transfer | 194S | Commonly 1% | Specified payer | VDA transaction and threshold |
| Specified contractor/professional payment by individual/HUF | 194M | Commonly 2% | Eligible individual/HUF | Threshold and payment category |
*Old section references are shown because many businesses still reconcile FY 2025-26 transactions and corrections. For transactions from 1 April 2026 onward, the Income-tax Department says the corresponding section 393 table item under the Income-tax Act, 2025 should be used instead of quoting old section numbers.
Does TDS Depend on Company, HUF or Individual?
Yes, the deductor's status can affect whether a particular TDS provision applies, but it is not the only deciding factor. The correct analysis considers the deductor category, nature of payment, payee category, transaction value, applicable threshold, PAN status and whether a specific special provision applies.
Company
Companies are commonly subject to TDS obligations for salary, contractor payments, professional fees, rent, interest and other specified payments. The exact provision depends on the transaction.
HUF
HUFs can have TDS obligations, but certain provisions contain specific payer-status or threshold conditions. Individual/HUF-specific provisions should be checked before deduction.
Individual
An individual may or may not be required to deduct TDS depending on the payment and statutory conditions. Some provisions specifically cover individuals/HUFs only after specified thresholds or conditions are met.
Why 1%, 2% and 10% Are Not Universal TDS Rates
A frequent TDS mistake is selecting a flat 1%, 2% or 10% rate without first identifying the payment. For example, contractor payments, professional fees, interest, commission and rent can have different statutory rates and thresholds. The GSTBUY calculator therefore allows a rate selection for quick estimation, while the detailed table should be used to identify the appropriate provision before filing.
Salary TDS — Special Treatment
Salary TDS should not normally be calculated by simply multiplying a monthly salary by 1%, 2% or 10%. Under the salary provision, the employer estimates the employee's taxable income for the relevant tax year and deducts tax according to the applicable tax regime and rules. For tax year 2026-27, the Income Tax Department explains that salary TDS for salary pertaining to the new tax year follows the Income-tax Act, 2025 framework.
Professional Fees, Contractor Payments and Commission
Thresholds Matter
TDS is often triggered only when a specified monetary threshold is crossed, and thresholds can differ by provision and payee category. A correct TDS review should therefore record the cumulative amount paid or credited during the relevant period, not just the current invoice amount.
PAN, Higher Deduction and Lower/Nil Deduction
PAN and the payee's tax status can affect TDS treatment. Lower or nil deduction certificates can also change the amount to be deducted where legally applicable. GSTBUY recommends validating the payee PAN and applicable certificate before finalising a TDS entry.
Form 24Q, 26Q and 27Q
Form 24Q
Quarterly TDS statement for tax deducted from salary payments.
Form 26Q
Quarterly TDS statement generally used for resident payments other than salary.
Form 27Q
Quarterly statement generally associated with TDS on payments to non-residents.
The exact return format and section references depend on the tax period. The Income Tax Department has specifically stated that the e-TDS/TCS return preparation utilities and TRACES will support both old-format returns for periods up to March 2026 and the new-format framework for periods from April 2026 onward during the transition.
TDS Return Filing — What We Prepare
TDS Deposit & Return Timeline
Under the Income Tax Department's current guidance, the general rule under the old framework is that TDS is deposited by the 7th of the following month, with March deduction for non-government deductors generally due by 30 April. Certain challan-cum-statement transactions had a different 30-day timeline. For the post-1 April 2026 framework, the Department says the corresponding timelines continue under the Income Tax Rules, 2026.
Challan-cum-TDS Statement Transactions
The Income Tax Department's transition guidance identifies specific transaction categories that historically used challan-cum-statement forms, including purchase of immovable property, rent by specified individuals/HUFs, specified contractor/professional payments by individuals/HUFs and virtual digital asset transfers. For transactions on or after 1 April 2026, the Department states that the new framework uses a common Form 141 under the Income Tax Rules, 2026 for these categories.
Non-Resident Payments
Payments to non-residents require a separate review because the applicable withholding provision, rate, treaty position, residential status, nature of income and supporting documentation can differ from resident payments. Form 27Q is generally associated with quarterly TDS statements for non-resident payments, subject to the applicable reporting framework.
TDS Certificate & Credit
TDS deducted by the deductor is intended to be reflected in the recipient's tax records. The deductee should reconcile TDS credit with AIS/Form 26AS or the applicable tax information before filing the income-tax return. A mismatch may require the deductor to correct the underlying TDS statement.
GSTBUY TDS Return Filing Process
Common TDS Errors
Consequences of TDS Default
The Income Tax Department states that failure to deduct or deposit TDS can result in interest, recovery and other consequences. The current transition guidance states that interest for failure to deduct is generally 1% per month or part thereof and interest for failure to deposit after deduction is generally 1.5% per month or part thereof, subject to the applicable law and circumstances. Certain business-income disallowance consequences can also arise.
Documents Required for TDS Return Filing
TAN Details
TAN, deductor legal name, address and authorised contact information.
Challans
Tax deposited, challan details and payment dates.
Deductee Data
PAN, name, address where required and payment-level details.
Payment Register
Invoices, ledger extracts, salary records and payment/credit dates.
Certificates
Lower/nil deduction certificates and other supporting documents where applicable.
Previous Returns
Earlier quarterly statements, corrections, defaults and TRACES information.
Need TDS Return Filing Support?
Share your deductor details and payment data with GSTBUY for TDS classification, reconciliation and return filing support.
Start TDS Return Filing Book an AppointmentFrequently Asked Questions
Can I calculate TDS at 1%, 2% or 10%?
Yes, the GSTBUY calculator can estimate those rates, but the actual statutory rate must be determined from the payment type, applicable provision, threshold and taxpayer circumstances.
Does TDS depend on whether the deductor is a company, HUF or individual?
It can. Some provisions contain payer-status conditions, while others apply to specified categories of deductors. Payment nature, threshold and payee status must also be considered.
Which form is used for salary TDS?
Form 24Q is generally used for quarterly TDS statements relating to salary payments.
Which form is used for resident non-salary TDS?
Form 26Q is generally used for quarterly TDS statements for resident payments other than salary, subject to the applicable reporting rules.
Which TDS return is used for non-resident payments?
Form 27Q is generally associated with quarterly TDS statements for payments to non-residents, subject to the applicable reporting framework.
What changed from 1 April 2026?
The Income Tax Department states that the Income-tax Act, 2025 consolidates TDS provisions under section 392 for salaries and section 393 for other specified payments. Old section references apply to transactions governed by the earlier Act.
What happens if TDS is deducted but not deposited?
Interest and other statutory consequences can apply. The exact consequence depends on the nature and period of the default.
Can GSTBUY handle TDS corrections?
GSTBUY can assist with review and correction workflows where an earlier TDS statement contains an identified error, subject to the applicable filing rules.
This GSTBUY page is an informational guide based on Income Tax Department TDS compliance and transition guidance. TDS rates, thresholds, section references and filing requirements must be checked against the applicable transaction date and current law before deduction or filing.
TDS Return Filing
Professional TDS return filing support for companies, firms, LLPs, HUFs, individuals and other deductors. Use the GSTBUY TDS Smart Calculator below to estimate common withholding amounts, identify the relevant payment category and review the return-filing workflow.
Calculate TDS Before You Pay
Select the deductor type, payment type and amount. The calculator gives an indicative TDS amount and net payable amount for common rates.
TDS Rates & Major Sections
TDS is tax deducted at source by the person responsible for making a specified payment. The applicable rate is not determined simply by whether the deductor is a company, HUF or individual; it depends on the payment category, applicable provision, threshold and payee circumstances. For transactions on or after 1 April 2026, the Income Tax Department explains that the TDS provisions have been consolidated under the Income-tax Act, 2025, principally section 392 for salaries and section 393 for other specified payments. For payments or credits up to 31 March 2026, the Income-tax Act, 1961 framework continues to govern those transactions.
Payment-wise TDS Reference Table
The table below is a practical GSTBUY reference for common payment categories. It is designed to help identify the relevant area for review; it should not be treated as a substitute for checking the exact statutory provision, threshold and transaction facts.
| Payment Type | Old Act Reference* | Common Rate / Treatment | Typical Deductor | Key Check |
|---|---|---|---|---|
| Salary | 192 | Slab / estimated annual tax | Employer | Employee income, regime, declarations and annual computation |
| Contractor / sub-contractor | 194C | Commonly 1% / 2% depending on payee category | Specified persons | Contract nature, payee type and threshold |
| Commission / brokerage | 194H | Commonly 2% | Specified persons | Nature of commission and threshold |
| Rent | 194-I | Commonly 2% / 10% depending on asset/payment category | Specified persons | Plant/machinery vs land/building/furniture and threshold |
| Interest other than securities | 194A | Commonly 10% | Specified persons | Payee, payer category and threshold |
| Professional / technical fees | 194J | Commonly 2% / 10% depending on payment category | Specified persons | Nature of service and applicable threshold |
| Purchase of goods | 194Q | Commonly 0.1% subject to conditions | Specified buyers | Buyer turnover and seller/payment thresholds |
| Business benefit / perquisite | 194R | Commonly 10% | Specified persons | Benefit/perquisite nature and threshold |
| Purchase of immovable property | 194-IA | Commonly 1% | Buyer | Property consideration/stamp value and conditions |
| Rent by individual/HUF | 194-IB | Commonly 2% | Eligible individual/HUF | Applicable threshold and payer status |
| VDA transfer | 194S | Commonly 1% | Specified payer | VDA transaction and threshold |
| Specified contractor/professional payment by individual/HUF | 194M | Commonly 2% | Eligible individual/HUF | Threshold and payment category |
*Old section references are shown because many businesses still reconcile FY 2025-26 transactions and corrections. For transactions from 1 April 2026 onward, the Income-tax Department says the corresponding section 393 table item under the Income-tax Act, 2025 should be used instead of quoting old section numbers.
Does TDS Depend on Company, HUF or Individual?
Yes, the deductor's status can affect whether a particular TDS provision applies, but it is not the only deciding factor. The correct analysis considers the deductor category, nature of payment, payee category, transaction value, applicable threshold, PAN status and whether a specific special provision applies.
Company
Companies are commonly subject to TDS obligations for salary, contractor payments, professional fees, rent, interest and other specified payments. The exact provision depends on the transaction.
HUF
HUFs can have TDS obligations, but certain provisions contain specific payer-status or threshold conditions. Individual/HUF-specific provisions should be checked before deduction.
Individual
An individual may or may not be required to deduct TDS depending on the payment and statutory conditions. Some provisions specifically cover individuals/HUFs only after specified thresholds or conditions are met.
Why 1%, 2% and 10% Are Not Universal TDS Rates
A frequent TDS mistake is selecting a flat 1%, 2% or 10% rate without first identifying the payment. For example, contractor payments, professional fees, interest, commission and rent can have different statutory rates and thresholds. The GSTBUY calculator therefore allows a rate selection for quick estimation, while the detailed table should be used to identify the appropriate provision before filing.
Salary TDS — Special Treatment
Salary TDS should not normally be calculated by simply multiplying a monthly salary by 1%, 2% or 10%. Under the salary provision, the employer estimates the employee's taxable income for the relevant tax year and deducts tax according to the applicable tax regime and rules. For tax year 2026-27, the Income Tax Department explains that salary TDS for salary pertaining to the new tax year follows the Income-tax Act, 2025 framework.
Professional Fees, Contractor Payments and Commission
Thresholds Matter
TDS is often triggered only when a specified monetary threshold is crossed, and thresholds can differ by provision and payee category. A correct TDS review should therefore record the cumulative amount paid or credited during the relevant period, not just the current invoice amount.
PAN, Higher Deduction and Lower/Nil Deduction
PAN and the payee's tax status can affect TDS treatment. Lower or nil deduction certificates can also change the amount to be deducted where legally applicable. GSTBUY recommends validating the payee PAN and applicable certificate before finalising a TDS entry.
Form 24Q, 26Q and 27Q
Form 24Q
Quarterly TDS statement for tax deducted from salary payments.
Form 26Q
Quarterly TDS statement generally used for resident payments other than salary.
Form 27Q
Quarterly statement generally associated with TDS on payments to non-residents.
The exact return format and section references depend on the tax period. The Income Tax Department has specifically stated that the e-TDS/TCS return preparation utilities and TRACES will support both old-format returns for periods up to March 2026 and the new-format framework for periods from April 2026 onward during the transition.
TDS Return Filing — What We Prepare
TDS Deposit & Return Timeline
Under the Income Tax Department's current guidance, the general rule under the old framework is that TDS is deposited by the 7th of the following month, with March deduction for non-government deductors generally due by 30 April. Certain challan-cum-statement transactions had a different 30-day timeline. For the post-1 April 2026 framework, the Department says the corresponding timelines continue under the Income Tax Rules, 2026.
Challan-cum-TDS Statement Transactions
The Income Tax Department's transition guidance identifies specific transaction categories that historically used challan-cum-statement forms, including purchase of immovable property, rent by specified individuals/HUFs, specified contractor/professional payments by individuals/HUFs and virtual digital asset transfers. For transactions on or after 1 April 2026, the Department states that the new framework uses a common Form 141 under the Income Tax Rules, 2026 for these categories.
Non-Resident Payments
Payments to non-residents require a separate review because the applicable withholding provision, rate, treaty position, residential status, nature of income and supporting documentation can differ from resident payments. Form 27Q is generally associated with quarterly TDS statements for non-resident payments, subject to the applicable reporting framework.
TDS Certificate & Credit
TDS deducted by the deductor is intended to be reflected in the recipient's tax records. The deductee should reconcile TDS credit with AIS/Form 26AS or the applicable tax information before filing the income-tax return. A mismatch may require the deductor to correct the underlying TDS statement.
GSTBUY TDS Return Filing Process
Common TDS Errors
Consequences of TDS Default
The Income Tax Department states that failure to deduct or deposit TDS can result in interest, recovery and other consequences. The current transition guidance states that interest for failure to deduct is generally 1% per month or part thereof and interest for failure to deposit after deduction is generally 1.5% per month or part thereof, subject to the applicable law and circumstances. Certain business-income disallowance consequences can also arise.
Documents Required for TDS Return Filing
TAN Details
TAN, deductor legal name, address and authorised contact information.
Challans
Tax deposited, challan details and payment dates.
Deductee Data
PAN, name, address where required and payment-level details.
Payment Register
Invoices, ledger extracts, salary records and payment/credit dates.
Certificates
Lower/nil deduction certificates and other supporting documents where applicable.
Previous Returns
Earlier quarterly statements, corrections, defaults and TRACES information.
Need TDS Return Filing Support?
Share your deductor details and payment data with GSTBUY for TDS classification, reconciliation and return filing support.
Start TDS Return Filing Book an AppointmentFrequently Asked Questions
Can I calculate TDS at 1%, 2% or 10%?
Yes, the GSTBUY calculator can estimate those rates, but the actual statutory rate must be determined from the payment type, applicable provision, threshold and taxpayer circumstances.
Does TDS depend on whether the deductor is a company, HUF or individual?
It can. Some provisions contain payer-status conditions, while others apply to specified categories of deductors. Payment nature, threshold and payee status must also be considered.
Which form is used for salary TDS?
Form 24Q is generally used for quarterly TDS statements relating to salary payments.
Which form is used for resident non-salary TDS?
Form 26Q is generally used for quarterly TDS statements for resident payments other than salary, subject to the applicable reporting rules.
Which TDS return is used for non-resident payments?
Form 27Q is generally associated with quarterly TDS statements for payments to non-residents, subject to the applicable reporting framework.
What changed from 1 April 2026?
The Income Tax Department states that the Income-tax Act, 2025 consolidates TDS provisions under section 392 for salaries and section 393 for other specified payments. Old section references apply to transactions governed by the earlier Act.
What happens if TDS is deducted but not deposited?
Interest and other statutory consequences can apply. The exact consequence depends on the nature and period of the default.
Can GSTBUY handle TDS corrections?
GSTBUY can assist with review and correction workflows where an earlier TDS statement contains an identified error, subject to the applicable filing rules.
This GSTBUY page is an informational guide based on Income Tax Department TDS compliance and transition guidance. TDS rates, thresholds, section references and filing requirements must be checked against the applicable transaction date and current law before deduction or filing.