How to File TDS Return Online: Step-by-Step Filing Process

Alisha kar
2 days ago
4 min read

TDS (Tax Deducted at Source) is a vital compliance mechanism under the Income Tax Act, 1961, that ensures tax collection at the source of income. Every deductor—whether an employer, business, or government body—must file TDS return quarterly to report the tax deducted and deposited to the Income Tax Department.

With the shift toward digitization, the Income Tax Department has made it easier for deductors to file TDS return online. This blog will guide you through the step-by-step process to file TDS return, its due dates, penalties for non-compliance, and more.

What is a TDS Return?

A TDS return is a quarterly statement that every deductor must submit to the Income Tax Department. It includes details such as:

PAN of the deductor and deductees
Amount paid and the tax deducted
TDS challan information
TDS certificate details

Who Should File TDS Return?

The following entities are required to file TDS return online:

Employers deducting TDS on salaries
Companies making payments above specified limits for rent, commission, professional fees, etc.
Individuals or HUFs (not liable to audit) who deduct TDS under section 194M
Banks deducting TDS on interest income
Anyone who deducts tax at source under the Income Tax Act

Types of TDS Returns

There are different forms for various types of TDS deductions:

Form	Purpose	Applicable Section
24Q	TDS on Salary	Section 192
26Q	TDS on all payments other than salary to residents	Section 200(3)
27Q	TDS on payments to non-residents	Section 200(3)
26QB	TDS on sale of property	Section 194-IA
26QC	TDS on rent	Section 194-IB
26QD	TDS on contractual work/professional fees	Section 194M

Prerequisites to File TDS Return Online

Before you start the TDS return filing process, ensure the following:

TAN (Tax Deduction and Collection Account Number) of the deductor
PAN details of the deductor and deductees
Challan Identification Number (CIN)
Valid digital signature (for online filing with DSC)
Deductee details (Name, PAN, amount paid, tax deducted)
Use of Return Preparation Utility (RPU) and File Validation Utility (FVU) from the NSDL website

Step-by-Step Process to File TDS Return Online

Follow these steps to file TDS return online accurately:

Step 1: Download the TDS Return Preparation Utility (RPU)

Visit the TIN-NSDL website: https://www.tin-nsdl.com
Click on Services > TDS > e-TDS/e-TCS RPU
Download the latest version of Return Preparation Utility (RPU) and File Validation Utility (FVU)

These tools are essential to prepare and validate your TDS return file.

Step 2: Fill in the TDS Return Form

Using the RPU, enter all relevant details:

Deductor’s TAN, PAN, address
Type of return (24Q, 26Q, etc.)
Financial year and quarter
Challan details (BSR code, date of deposit, CIN, amount)
Deductee details (PAN, amount paid, TDS deducted)

Ensure accuracy to avoid rejection of your return.

Step 3: Validate the File Using FVU

Once the form is filled in, validate the return file with File Validation Utility (FVU):

Open FVU software
Browse and select the file created via RPU
Run validation
If successful, an .fvu file will be generated

This .fvu file is the final version to be uploaded on the TIN-NSDL portal.

Step 4: Register on the TRACES Portal (if not already)

To file TDS return online, you must be registered on the TRACES portal:

Visit: https://www.tdscpc.gov.in
Click on “Register as New User”
Choose “Deductor”
Enter TAN, PAN, and other required details
Set up login credentials

Once registered, you can manage TDS returns, view status, and download Form 16/16A.

Step 5: Upload TDS Return on Income Tax Portal

Visit the Income Tax e-Filing portal: https://www.incometax.gov.in
Log in using your TAN credentials
Navigate to e-File > Income Tax Forms > File Income Tax Forms
Select Form 24Q/26Q/27Q as applicable
Upload the validated .fvu file
Use your Digital Signature Certificate (DSC) to authenticate and submit

Alternatively, you can upload the return through a TIN-FC (Facilitation Center).

Due Dates for Filing TDS Returns

Quarter	Period Covered	Due Date
Q1	April to June	31st July
Q2	July to September	31st October
Q3	October to December	31st January
Q4	January to March	31st May

Make sure to file TDS return before the due date to avoid penalties.

Penalty for Late Filing of TDS Return

Failing to file TDS return online on time can result in the following penalties:

Late Filing Fee under Section 234E: ₹200 per day until the return is filed (maximum = TDS amount)
Penalty under Section 271H: ₹10,000 to ₹1,00,000 for incorrect or non-filing beyond one year
Interest for Late Deduction/Deposit:
- 1% per month for late deduction
- 1.5% per month for late deposit

To avoid these penalties, ensure timely and accurate return filing.

How to Revise a TDS Return

If there are errors in your TDS return, you can revise the return by:

Downloading the consolidated file from the TRACES portal
Make necessary corrections using RPU
Validate the corrected file via FVU
Upload the revised .fvu file through the e-Filing portal

Note: Only returns with valid token numbers can be revised.

Benefits of Filing TDS Return Online

Ensures compliance with tax laws
Helps in smooth issuance of Form 16/16A
Reduces chances of notices from the department
Enables deductees to claim TDS credit accurately
Easy tracking and record-keeping through TRACES portal

Common Mistakes to Avoid While Filing TDS Return

Quoting incorrect PAN/TAN
Selecting the wrong form type (24Q vs. 26Q)
Entering wrong challan details
Not validating file before upload
Missing due dates

Double-check all entries before final submission to avoid rejection or penalty.

How Online Legal India Can Help You File TDS Return

Filing TDS returns can be time-consuming and complex, especially for businesses with high transaction volumes. Online Legal India offers expert assistance to file TDS return online without hassle. Our professionals:

Ensure correct data entry and challan matching
Help with TRACES registration
Submit timely and compliant TDS returns
Provide Form 16/16A to your employees or clients

With our support, you can avoid late fees, errors, and compliance headaches.

Conclusion

Filing TDS returns is a crucial part of financial compliance for businesses, employers, and deductors. By following the steps outlined above, you can file TDS return online easily and on time. From downloading the utilities to uploading the validated file on the e-Filing portal, every step must be executed with accuracy and care.

If you're unsure about any part of the process, consider seeking help from professionals like Online Legal India to ensure error-free, timely submissions.