Tax Deducted at Source (TDS) is an essential part of India’s taxation system, ensuring that taxes are collected at the source of income itself. Businesses and individuals making payments must deduct TDS and file appropriate returns. Among the various TDS return forms, Form 24Q, 26Q, 27Q, and 27A are crucial for compliance.
In this article, we will explore what these forms are, their differences, due dates, and how to download them.
Forms for TDS Return
TDS (Tax Deducted at Source) returns must be filed using specific forms depending on the nature of the payment and the deductee. These returns help ensure that tax deducted at the source is accurately reported and deposited with the government.
Different types of payments, such as salaries, professional fees, and interest, require different TDS return forms. The most common forms are 24Q, 26Q, 27Q and apart from these, Form 27A serves an essential role in the process of filing TDS returns, particularly when they are submitted in a physical format. This form acts as a summary sheet and must be submitted along with the TDS return.
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What is Form 24Q? (TDS on Salary)
Form 24Q is a TDS return form used for reporting TDS deducted on salary payments by employers in India. It is filed quarterly by any organization or business that deducts TDS from employees’ salaries under Section 192 of the Income Tax Act, 1961.
Since salary payments include multiple components like basic salary, allowances, deductions, and exemptions, this form ensures proper reporting of tax deductions.
Who Needs to File Form 24Q?
Employers who deduct TDS from salaries must file Form 24Q. This includes:
- Private companies
- Government organizations
- Public sector undertakings (PSUs)
- Sole proprietors, partnerships, or individuals paying salaries
Structure of Form 24Q
Form 24Q consists of two parts:
- Part A: Contains details of TDS deducted and deposited, including the TAN (Tax Dedication and Collection Account Number), challan details, and deposit dates.
- Part B: Provides an employee-wise salary breakup, including salary components, deductions (80C, 80D, etc.), and exemptions (HRA, LTA, etc.).
What is Form 26Q? (TDS on Non-Salary Payments to Residents)
Form 26Q is a TDS (Tax Deducted at Source) return form used for reporting TDS deducted on non-salary payments made to Indian residents. It is filed quarterly by individuals, businesses, or organisations deducting TDS under various sections of the Income Tax Act, 1961, except Section 192 (salary payments).
This includes payments like professional fees, rent, commission, and interest (except salary-related interest).
Who needs to file Form 26Q?
Any person or entity making non-salary payments that require TDS deduction under Indian tax laws must file Form 26Q. This includes:
- Businesses and organisations
- Sole proprietors and professionals
- Government bodies and public sector undertakings (PSUs)
- Individuals liable to deduct TDS (e.g., on rent payments above threshold limits)
Transactions Covered Under Form 26Q
Some of the major transactions covered under Form 26Q include payments related to interest, rent, professional services, commission, and property purchases, among others. The applicable TDS rates and threshold limits may vary based on the type of payment.
Below is a detailed table explaining the different types of payments covered under Form 26Q:
| Payment Type | Relevant Section |
|---|---|
| Dividend payments (other than to individuals) | Section 194 |
| TDS on purchase of property (if above ₹50 lakh) | Section 194-IA |
| Interest (other than interest on securities) | Section 194A |
| Payment to contractors/sub-contractors | Section 194C |
| Commission or brokerage | Section 194H |
| Rent (if exceeding ₹2.4 lakh per year) | Section 194I |
| Professional or technical service fees | Section 194J |
| TDS on cash withdrawals (above ₹1 crore) | Section 194N |
What is Form 27Q? (TDS on Non-Salary Payments to Non-Residents)
Form 27Q is one of the important TDS return forms used for reporting TDS deducted on payments made to Non-Resident Indians (NRIs) and foreign companies. It applies to all non-salary payments made to non-residents, except those covered under Section 192 (salaries). This form ensures that taxes are deducted at source on income earned by NRIs and foreign entities in India.
This applies to transactions such as royalties, dividends, technical service fees, and interest payments.
Who needs to file Form 27Q?
Any individual, business, or organisation making payments to NRIs or foreign companies where TDS deduction is applicable must file Form 27Q. This includes:
- Indian businesses making payments to foreign entities
- Banks deducting TDS on NRI account interest
- Property buyers making payments to NRI sellers
- Companies paying royalties, technical fees, or dividends to foreign firms
Transactions Covered Under Form 27Q
Form 27Q is used for reporting TDS deductions on non-salary payments made to Non-Resident Indians (NRIs) and foreign companies. The applicable TDS rates may vary depending on the nature of the transaction and any Double Taxation Avoidance Agreement (DTAA) between India and the recipient’s country.
Below is a table listing the key transactions covered under Form 27Q:
| Type of Payment | Relevant Section |
|---|---|
| Interest payments (other than interest on securities) | Section 194A |
| Dividend payments | Section 195 |
| Royalty payments | Section 195 |
| Technical service fees | Section 195 |
| Capital gains on property sales | Section 195 |
| Payments for business profits | Section 195 |
| TDS on payment for foreign remittances | Section 195 |
What is Form 27A? (TDS Return Summary Cover Letter)
Form 27A is a TDS/TCS control chart that serves as a summary sheet for TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) return forms. It is a mandatory document that must be submitted along with Forms 24Q, 26Q, 27Q, and 27EQ when filing TDS/TCS returns in physical (paper) format.
Purpose of Form 27A
- Acts as a covering letter for TDS and TCS returns.
- Contains basic details such as TAN (Tax Deduction and Collection Account Number), the number of deductees, the total tax deducted, and the total tax deposited.
- Helps in matching the total TDS/TCS amount with the details mentioned in the respective return forms.
Who Needs to Submit Form 27A?
- Entities filing physical TDS/TCS returns must submit Form 27A along with their returns.
- It is not required when filing TDS/TCS returns online through the TRACES or NSDL portal.
Key Details in Form 27A
- TAN & PAN of the deductor
- Type of return (24Q, 26Q, 27Q, or 27EQ)
- Financial year and assessment year
- Total tax deducted and deposited
- Details of challans used for TDS payment
Form 27A ensures accuracy in TDS/TCS filings and helps the Income Tax Department verify the correctness of tax deposits.
Difference Between Form 24Q, 26Q, 27Q, and 27A
Forms 24Q, 26Q, and 27Q are different TDS return forms, while Form 27A is a summary sheet that accompanies physical TDS/TCS returns.
- Form 24Q is used for TDS on salaries, whereas Form 26Q is used for TDS on non-salary payments made to Indian residents.
- Form 27Q is specifically for TDS on non-salary payments made to Non-Resident Indians (NRIs) and foreign companies.
- Form 27A is not a TDS return form but a control sheet required for manually filing TDS/TCS returns.
Below is a detailed comparison of these forms:
| Sr. No. | Feature | Form 24Q | Form 26Q | Form 27Q | Form 27A |
|---|---|---|---|---|---|
| 1 | Purpose | TDS on salaries | TDS on non-salary payments to Indian residents | TDS on non-salary payments to NRIs & foreign companies | Summary sheet for TDS/TCS returns |
| 2 | Applicable For | Employers deducting TDS on salary payments | Businesses making payments like interest, rent, commission, etc. | Payments to NRIs/foreign entities such as interest, dividends, or property sales | Used for physical filing of TDS/TCS returns |
| 3 | Applicable Sections | Section 192 | Various sections (194A, 194C, 194H, 194J, etc. | Section 195 and other relevant sections for NRIs | Not applicable |
| 4 | Who Needs to File? | Employers deducting TDS from employees | Entities making specified non-salary payments | Entities making payments to NRIs or foreign companies | Anyone filing TDS/TCS returns in paper format |
| 5 | Period of Filing | Quarterly | Quarterly | Quarterly | Required only with physical submission |
| 6 | Mode of Filing | Online/Offline | Online/Offline | Online/Offline | Offline (physical submission) |
| 7 | Penalty for Late Filing | ₹200 per day (Section 234E) | ₹200 per day (Section 234E) | ₹200 per day (Section 234E) | No direct penalty, but non-submission may delay processing |
Due Dates for Filing TDS Return Forms 24Q, 26Q, and 27Q
TDS return forms 24Q, 26Q, and 27Q must be filed quarterly. The due dates for each quarter are as follows:
- For April – June (Quarter 1): 31st July
- For July – September (Quarter 2): 31st October
- For October – December (Quarter 3): 31st January
- For January – March (Quarter 4): 31st May
Timely filing of these TDS return forms ensures compliance with income tax regulations and helps avoid penalties.
Download TDS Return Forms
Here are the official links to download the required TDS return forms, including Form 24Q, 26Q, 27Q, and 27A.
- Form 24Q: Download Form 24Q​
- Form 26Q: Download Form 26Q​
- Form 27Q: Download Form 27Q​
- Form 27A: Download Form 27A
Conclusion
Understanding the distinctions between TDS return forms 24Q, 26Q, 27Q, and 27A is crucial for businesses, employers, and individuals to ensure compliance with TDS regulations. Each form serves a specific purpose related to TDS deductions, and Form 27A plays a vital role in summarising TDS returns when filing in paper format.
Proper filing of these forms ensures accurate tax reporting, prevents penalties, and maintains transparency in tax transactions.
For any queries or assistance with TDS filing, EasetoCompliance is here to help you with expert guidance and hassle-free compliance solutions. Contact us today for personalised support!
TDS Return Forms – FAQs
Q1. What is a TDS return?
A TDS return is a quarterly statement that tax deductors need to file with the Income Tax Department. It contains details of tax deducted at source (TDS) from various payments like salary, interest, rent, professional fees, etc., and the corresponding deposit with the government.
Q2. Can TDS returns forms be revised after filing?
Yes, TDS returns can be revised if any errors or omissions are found in the original return. The corrected return must be filed with the correct details.
Q3. Is Form 27A required for online filing?
No, Form 27A is only necessary for the physical submission of TDS returns.
Q4. What details are included in Form 24Q?
It includes employee salary details, TDS deducted, deposited amounts, and PAN details of the deductor and deductees.
