Tax Deducted at Source (TDS) is a crucial compliance mechanism under the Income Tax Act, 1961, where the payer deducts tax at the time of making certain payments and deposits it with the government. TDS return filing is a mandatory quarterly obligation for all deductors, including companies, LLPs, proprietors, and individuals making specified payments. Filing an accurate TDS return ensures transparency, helps the government track tax inflows, and assists deductees in claiming credit in their income tax returns.
However, errors or delays in TDS return filing can result in penalties, interest, and even disallowance of expenses. One of the best ways to avoid these complications is to keep your documentation organized. In this blog, we’ll provide a complete checklist of the documents required for TDS return filing in India. If you need expert support, OurTaxPartner.com offers professional TDS compliance and filing services tailored to businesses across India.
Who Needs to File TDS Returns?
The obligation to file TDS returns applies to various entities and individuals, including:
- Companies and Private Limited Firms
- LLPs and Partnership Firms
- Sole Proprietors with tax audit obligations
- Government organizations and local authorities
- Individuals or HUFs who deduct TDS on rent, interest, or professional fees (under section 194M or 194IB)
Types of TDS Returns and Their Forms
Each type of TDS transaction has a corresponding form that must be filed:
- Form 24Q: TDS on salaries
- Form 26Q: TDS on all payments other than salaries to residents
- Form 27Q: TDS on payments made to non-residents
- Form 26QB: TDS on sale of property (Section 194IA)
- Form 26QC: TDS on rent paid by individuals/HUFs (Section 194IB)
Checklist of Documents Required for TDS Return Filing
1. TAN Registration Details
The Tax Deduction and Collection Account Number (TAN) is mandatory for filing TDS returns. Ensure that your TAN is active and registered on the TRACES and income tax portals.
2. PAN Details of Deductor and Deductees
- Permanent Account Number (PAN) of the entity filing TDS
- PAN of all deductees (employees, vendors, contractors, landlords, etc.)
PAN accuracy is crucial to ensure credit is reflected in Form 26AS of the deductee.
3. Challan Details (Form 281)
Copies of TDS challans (Form 281) for each month or deduction instance, including:
- Challan Identification Number (CIN)
- BSR code of the bank branch
- Date of deposit
- Amount paid
4. Nature of Payment and Section Code
Identify the section under which TDS is deducted, such as:
- 194C – Contractor payments
- 194J – Professional or technical fees
- 194I – Rent
- 192 – Salaries
- 194H – Commission or brokerage
5. Deduction Summary
A complete breakup of all payments made and TDS deducted per deductee, including:
- Name and address of deductee
- Date of payment
- Amount paid
- Rate of TDS applied
- TDS amount deducted and date of deduction
6. Salary Details (For Form 24Q)
- Gross salary and deductions
- HRA, LTA, exemptions claimed
- Provident Fund and professional tax
- Taxable income computation
- Investment declarations (80C, 80D, etc.)
- Tax liability and TDS already deducted
7. Rent or Property Transaction Documents (For Form 26QB / 26QC)
- Property sale deed or rental agreement
- Details of buyer/tenant and seller/landlord with PANs
- Payment value, TDS amount, and transaction date
8. TRACES Login Credentials
Details of the registered account on TRACES (TDS Reconciliation Analysis and Correction Enabling System) are required to download Form 16/16A, TDS certificates, and Justification Reports.
9. Digital Signature Certificate (DSC) or Aadhaar e-Verification
For online submission of TDS returns, especially for companies, a valid Class 2 or Class 3 DSC is required. Individuals may use Aadhaar OTP-based verification for 26QB/26QC returns.
Additional Information
- Last return acknowledgment or previous TDS filing record (for continuity)
- Proof of salary payments or vendor bills (to match with TDS entries)
- Bank statement showing TDS payments and remittance
Penalty for Late or Incorrect Filing
Failure to file TDS returns on time can attract:
- Late Fee: ₹200 per day under Section 234E (up to the TDS amount)
- Penalty: ₹10,000 to ₹1,00,000 under Section 271H for incorrect details or non-filing
- Interest: 1% to 1.5% per month on delayed deduction or payment
Need Help with TDS Return Filing?
Managing TDS return filing can be complex, especially for growing businesses. At OurTaxPartner.com, we offer end-to-end TDS compliance services for businesses, startups, professionals, and real estate transactions across India.
Our services include:
- Preparation and filing of TDS returns (24Q, 26Q, 27Q, 26QB, 26QC)
- Challan payment and BSR code tracking
- Correction and revision of previous returns
- Form 16 / 16A generation
- Compliance with TRACES portal
Get started today at www.ourtaxpartner.com/filing-service/tds-compliance/
Conclusion
Accurate TDS return filing ensures compliance with tax laws, prevents penalties, and strengthens your company’s financial credibility. Whether you’re a salaried employer, a landlord, or a business managing multiple payments, maintaining proper documentation is key.
Organize your records, follow this checklist, or better yet, let professionals manage your TDS filing for you. Contact OurTaxPartner.com for expert and affordable TDS compliance services tailored to your business.
