> ## Documentation Index > Fetch the complete documentation index at: https://docs.bizaxl.com/llms.txt > Use this file to discover all available pages before exploring further. # TDS Returns > Prepare and file quarterly TDS and TCS returns (24Q, 26Q, 27Q, 27EQ) with deductee lines, challan reconciliation, and validation before submission. **Roles: CA Staff (prepares), CA Manager (reviews and files)** - Staff enter the deductee and challan data and validate the reconciliation. The manager performs the final review and marks the return as filed after uploading to the TRACES/TIN portal. **Upstream dependency:** A CA Engagement must exist for the client (the deductor). The engagement must carry a valid TAN (Tax Deduction Account Number) and be flagged as a TDS Deductor. **Downstream:** Filing a 26Q automatically creates a Form 16A issuance task for each deductee. Filing a 24Q in Q4 creates a Form 16 issuance task for all employees, due by 15 June. These tasks appear in the compliance task queue for follow-up. *** ## What is a TDS return? A TDS return (auto-named **TDS-{form_type}-{financial_year}-{quarter}-{deductor_tan}**) is a quarterly statement of all tax deducted at source by a deductor and the challans used to deposit that tax with the government. It records who was paid, under which section, how much TDS was deducted, and whether the deposited challan amounts reconcile with the deductions. TDS Return form showing the deductor TAN, form type selector, financial year, quarter, status badge, and the deductee and challan tabs *** ## Who uses this feature | Role | What they do | | -------------- | -------------------------------------------------------------------------------- | | **CA Staff** | Creates the return, enters deductee lines, enters challan lines, runs validation | | **CA Manager** | Reviews the validated return, files it on the portal, records the filing | *** ## Before you start * Confirm the correct TAN with the client before creating the return. Returns filed under a wrong TAN cannot be corrected by amendment; they require a fresh filing. * Collect the deductee details: PAN, name, total amount paid, TDS rate, and TDS amount for each deductee in the quarter. * Collect the challan details from the client's bank records or OLTAS (Online Tax Accounting System): BSR code, challan number, deposit date, and amount for each deposit. * Verify that the client has actually deposited the TDS with the government before filing. Filing without deposit creates a mismatch and attracts interest under section 201(1A). *** ## Form types | Form | TDS/TCS type | Covers | | -------- | ---------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------- | | **24Q** | TDS on salary | Salary payments to employees under section 192 | | **26Q** | TDS on non-salary | Rent (194I), professional fees (194J), contractor payments (194C), interest (194A), commission (194H), and all other non-salary payments | | **27Q** | TDS on non-resident payments | Payments to non-residents and foreign companies | | **27EQ** | TCS | Tax Collected at Source on sale of goods (206C) | *** ## Financial year and quarter | Quarter | Period | Standard due date (26Q / 27Q / 27EQ) | Due date for 24Q | | ------- | ------------------- | ------------------------------------ | ---------------- | | **Q1** | April to June | 31 July | 31 July | | **Q2** | July to September | 31 October | 31 October | | **Q3** | October to December | 31 January | 31 January | | **Q4** | January to March | 31 May | 31 May | A late filing attracts a fee of Rs. 200 per day under section 234E, capped at the total TDS amount. The fee accrues from the day after the due date and cannot be waived. File on time even if some challans or deductee details need correction after filing. *** ## Status track | Status | What it means | | ------------- | ----------------------------------------------------------------------- | | **Draft** | Being prepared; deductee and challan lines can still be edited | | **Validated** | Reconciliation check passed; ready for manager review and filing | | **Filed** | Return uploaded to the TRACES/TIN portal; filing recorded in the system | *** ## Step-by-step: prepare a TDS return ### Step 1: Create the return **Path:** Filings section → TDS Returns → New 1. Select the **CA Engagement** (deductor TAN and name auto-populate). 2. Select the **Form Type** (24Q, 26Q, 27Q, or 27EQ). 3. Select the **Financial Year**. 4. Select the **Quarter** (Q1, Q2, Q3, or Q4). 5. Save. The record is created in **Draft** status with the auto-name TDS-{form_type}-{financial_year}-{quarter}-{deductor_tan}. New TDS Return form with Engagement, Form Type, Financial Year, and Quarter fields ### Step 2: Enter deductee lines **Tab:** Deductees (CA TDS Deductee) Add one row for each deductee (the person or company from whom the tax was deducted). For each row: Deductees tab showing rows with PAN, Name, Section, Amount Paid, TDS Rate, and TDS Deducted columns | Field | Description/Purpose | | ----------------- | ---------------------------------------------------------------------------------------------------------------------------- | | **Deductee PAN** | Permanent Account Number of the person whose tax was deducted. Required to avoid higher deduction under section 206AA | | **Deductee Name** | Full name as it appears on PAN records | | **Section** | The TDS section under which deduction was made (e.g. 192, 194A, 194C, 194J, 194I) | | **Amount Paid** | Total gross amount paid to the deductee during the quarter | | **TDS Rate (%)** | The applicable rate under the section (or the higher rate of 20% if PAN is missing) | | **TDS Deducted** | Amount deducted; auto-calculated as Amount Paid multiplied by TDS Rate, but can be overridden for threshold-based deductions | For **24Q** (salary): enter one row per employee, covering the salary paid and TDS deducted in the quarter. Annualised salary calculations are done outside the system (typically in the payroll software); enter only the quarterly figures here. For **27EQ** (TCS): the fields reflect the buyer's PAN, the nature of goods, the collection rate, and the amount collected rather than deducted. If a deductee has not provided their PAN, enter **PANNOTAVBL**, **PANAPPLIED**, or **PANINVALID** as appropriate. The system applies the higher deduction rate of 20% automatically for rows with a missing valid PAN, in line with section 206AA. ### Step 3: Enter challan lines **Tab:** Challans (CA TDS Challan) Add one row for each challan used to deposit TDS with the government. For each row: Challans tab showing rows with Challan Number, BSR Code, Deposit Date, and Amount Deposited columns | Field | Description/Purpose | | -------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------- | | **Challan Number** | The serial number on the bank challan (from OLTAS or the bank receipt). Enter exactly as it appears; any deviation causes a mismatch in TRACES | | **BSR Code** | The 7-digit Basic Statistical Return code of the bank branch where the deposit was made | | **Deposit Date** | The date the amount was credited to the government account (not the date of the bank visit) | | **Amount Deposited** | Total amount deposited in this challan, including any interest or penalty paid | Enter challan references exactly as they appear on the OLTAS challan status enquiry. Even a single digit error prevents the challan from being matched during TRACES processing, resulting in a demand notice against the deductor. ### Step 4: Validate the reconciliation Once all deductee and challan lines are entered, click **Validate**. The system checks: * **Total TDS in deductee lines** (sum of all TDS Deducted values) matches **Total Challan amount** (sum of all Amount Deposited values). * The **Reconciled** indicator turns **Yes** if the two totals match exactly. * If there is a mismatch, the indicator shows **No** with the difference amount. Correct either the deductee lines or the challan lines before proceeding. TDS Return summary section showing Total TDS, Total Challan, and the Reconciled status indicator A return cannot move to **Validated** status unless the Reconciled indicator shows **Yes**. ### Step 5: Submit for manager review Once validated, the CA Staff submits the return for review. The status moves to **Validated**. The CA Manager: 1. Reviews the deductee lines against the challan receipts. 2. Confirms the form type, financial year, and quarter. 3. Downloads the FVU-format file for upload (generated by the system). 4. Uploads the file to the TIN-NSDL / TRACES portal. 5. Returns to the system and clicks **Mark as Filed**. 6. Enters the **Provisional Receipt Number (PRN)** and the **Filing Date**. 7. The return status moves to **Filed**. TDS Return in Filed status with Provisional Receipt Number and Filing Date fields filled *** ## What happens after filing ### After filing 26Q The system automatically creates a **Form 16A issuance task** for each deductee in the return. The task is assigned to the CA Staff responsible for this engagement. Form 16A must be generated from TRACES and issued to the deductee within 15 days of the filing due date. ### After filing 24Q (Q4 only) The system creates a **Form 16 issuance task** for all employees in the return. Form 16 must be issued to all employees by **15 June** of the same year. Q1, Q2, and Q3 filings of 24Q do not trigger Form 16 tasks. ### After filing 27EQ No automatic task is created. The collected tax certificate (Form 27D) must be issued to the buyer within 15 days of the filing due date. A manual task can be created from the compliance task list if required. *** ## Nil returns If the deductor made no payments in the quarter that would require TDS deduction, you are still required to file a nil return for that quarter. Create the return with no deductee lines and a nil challan entry. Validate and file as normal. Failure to file a nil return also attracts the section 234E late fee. *** ## Corrections to filed returns If an error is discovered in a filed return (wrong PAN, incorrect challan, missing deductee), do not edit the original filed return. Instead: 1. Open the filed return. 2. Click **Create Revised Return**. The system creates a new Draft return pre-populated with all the original data. 3. Correct the specific error in the revised return. 4. Validate and file the revised return through TRACES Correction Statement. The original filed return remains unchanged in the system for reference. The revised return is linked to it. *** ## Field guide | Field | Description/Purpose | | ------------------------------------ | --------------------------------------------------------------------------------------- | | **Deductor TAN** | Tax Deduction Account Number of the deductor; auto-populated from the engagement | | **Deductor Name** | Name of the deductor entity; auto-populated from the engagement | | **Engagement** | Links the return to the client; drives TAN and name population | | **Form Type** | 24Q, 26Q, 27Q, or 27EQ | | **Financial Year** | The year in which the deductions were made (e.g. FY 2024-25) | | **Quarter** | Q1, Q2, Q3, or Q4 | | **Status** | Draft, Validated, or Filed (progression is one-way) | | **Deductee Lines** | Child table of CA TDS Deductee rows; one row per deductee | | **Challan Lines** | Child table of CA TDS Challan rows; one row per deposit challan | | **Total TDS** | Sum of all TDS Deducted values across all deductee rows (read-only, auto-calculated) | | **Total Challan** | Sum of all Amount Deposited values across all challan rows (read-only, auto-calculated) | | **Reconciled** | Yes if Total TDS equals Total Challan; No if there is a difference (read-only) | | **Provisional Receipt Number (PRN)** | The acknowledgement number from TIN-NSDL after filing; entered after filing | | **Filing Date** | Date the return was uploaded to the portal; entered after filing | *** ## Notifications and alerts | Event | Who is notified | | ---------------------------------------- | ------------------------------------------------------------------------------- | | Return created and assigned to staff | CA Staff (in-app) | | Reconciliation fails on validation | CA Staff (in-app, with difference amount shown) | | Return status moves to Validated | CA Manager (in-app) | | Filing due date falls within 7 days | CA Manager (in-app deadline reminder) | | Filing due date passes without filing | CA Manager and CA Partner (in-app escalation; section 234E fee begins accruing) | | Return marked as Filed | CA Staff (in-app confirmation) | | Form 16A task created after 26Q filing | CA Staff (in-app task assignment) | | Form 16 task created after 24Q Q4 filing | CA Staff (in-app task assignment) | *** ## Workspace access TDS Returns are accessible from: 1. **Portal (Filings section):** Sign in to the portal, go to Filings, then Reconciliation to access TDS returns and reconciliation tools. 2. **Desk workspace (Compliance Management card):** Open Compliance Tasks and filter by the TDS obligation type to see the parent task linked to this return. The compliance task linked to a TDS obligation shows the due date and the preparation status, so the CA Manager can track all quarterly TDS filings from the compliance ageing report. Portal Filings section with the TDS Returns list showing all quarters for all clients and their current status *** ## Best practices * **Match challan references exactly as they appear on OLTAS.** Copy-paste the BSR code and challan number from the OLTAS enquiry page; do not re-type them. A single transposed digit will cause TRACES processing to fail. * **Validate the reconciliation before submitting for review.** Never hand a return to the manager in Draft status; the Reconciled check must pass first. If it does not reconcile, check whether a challan was missed or a deductee amount was entered incorrectly. * **File nil returns on time.** A nil return that is filed late still attracts the section 234E fee. Create a nil return shell at the start of each quarter for clients who may not have any deductions; update it with data if deductions occur before the due date. * **Update deductee PAN before filing.** If a deductee's PAN is missing or incorrect at the time of filing, the system applies the higher deduction rate under section 206AA. Getting the PAN corrected in a revised return is possible but adds work. Obtain PANs from deductees before the payment, not after. * **Issue Form 16A within 15 days of the due date.** The Form 16A task created after filing 26Q has a system-calculated due date. Track it in the compliance task queue and do not let it slip; non-issuance of Form 16A carries a penalty of Rs. 100 per day per deductee. * **Reconcile with Form 26AS before filing 24Q Q4.** The employee's TDS as reflected in their Form 26AS must match what you are filing. Check for any short-deductions or excess deductions before the Q4 filing to avoid notices under section 154. * **Use revised returns for corrections, never edit filed records.** The filed return in the system is your audit trail. Always create a revised return and file a correction statement through TRACES for any post-filing changes. *** ## Related features * [Income Tax Computations](/professional-services/ca-practice-management/income-tax-computations) - TDS credits entered in the Tax Paid tab of a computation must match what was filed in these returns * [Workflow Overview](/professional-services/ca-practice-management/workflow-overview) - how TDS return preparation fits into the full compliance lifecycle * [Feature Overview](/professional-services/ca-practice-management/feature-overview) - quick reference for all features including the TDS Return entry and its downstream Form 16/16A impact