End-to-End TDS Return Filing for FY 2025–26 With Processing Confirmation

End-to-end TDS return filing for FY 2025–26 requires deductors to follow a structured quarterly process covering deduction, deposit, return filing, and confirmation of processing. Each stage plays a role in ensuring that tax deducted under various provisions is accurately reflected in Form 26AS and AIS of deductees. Filing the correct return form, meeting due dates, validating challans, and tracking processing status on TRACES are essential to avoid penalties, interest, and mismatches. A properly completed TDS return confirms compliance and enables seamless credit for recipients without follow-up notices or corrections.

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Table of Contents

Understanding End-to-End TDS Return Filing for FY 2025–26

Applicable TDS Sections and Scope of Compliance

Quarterly Due Dates for TDS Returns and Deposits

Selecting the Correct TDS Return Forms for FY 2025–26

Preparing TDS Returns Using RPU and FVU Utilities

Step-by-Step TDS Return Filing on the Income Tax Portal

Validation Checks Before Submitting TDS Returns

Role of Accurate Bank Account Details in TDS Filing

Common Bank Detail Errors and Their Impact on Processing

TDS Return Processing and Confirmation Through TRACES

How to Verify TDS Credits in Form 26AS and AIS

Filing Correction Statements for Errors and Omissions

Interest and Late Fees Applicable to Delayed TDS Returns

Digital Compliance and Filing Support Using TaxBuddy

Key Compliance Takeaways for FY 2025–26

Conclusion

FAQs

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Understanding End-to-End TDS Return Filing for FY 2025–26

End-to-end TDS return filing refers to the complete compliance cycle starting from tax deduction at source, timely deposit with the government, quarterly return filing, and finally obtaining processing confirmation. For FY 2025–26, this cycle ensures that tax deducted under various provisions is correctly credited to deductees without delays or disputes. A return is considered complete only when it is processed without default on TRACES and reflected accurately in Form 26AS and AIS. Any break in this chain can lead to penalties, interest, or mismatches.

Applicable TDS Sections and Scope of Compliance

TDS compliance for FY 2025–26 spans multiple sections depending on the nature of payment. Salary payments fall under Section 192, while interest, professional fees, contractual payments, and rent are covered under Sections 194, 194A, 194C, and related provisions. Payments to non-residents attract separate compliance under Section 195 and related rules. The scope of compliance includes correct rate application, PAN validation, challan tagging, deductee reporting, and certificate generation.

Quarterly Due Dates for TDS Returns and Deposits

TDS returns are filed quarterly, while tax deposits are generally made monthly. Deposits are due by the 7th of the following month, except for March, which has an extended deadline. Quarterly returns must be filed within the prescribed timelines to avoid late fees. Missing either the deposit or return deadline triggers interest under Section 201(1A) and a late filing fee under Section 234E, even if the tax has been correctly deducted.

Selecting the Correct TDS Return Forms for FY 2025–26

Choosing the correct TDS return form is critical for successful processing. Form 24Q is used for salary-related deductions, Form 26Q applies to most non-salary domestic payments, Form 27Q is meant for payments to non-residents, and Form 27EQ is used for tax collected at source in specified cases. Filing the wrong form often results in rejection or processing delays and may require a correction statement.

Preparing TDS Returns Using RPU and FVU Utilities

TDS returns are prepared using the Return Preparation Utility and validated using the File Validation Utility provided by TRACES. The RPU captures deductee details, challan information, and deduction amounts, while the FVU checks structural and logical accuracy. Errors at this stage, such as incorrect PAN formats or unmatched challans, must be resolved before upload. A clean FVU file significantly improves the chances of smooth processing.

Step-by-Step TDS Return Filing on the Income Tax Portal

Once the validated file is ready, it is uploaded to the income tax e-filing portal using the deductor’s TAN. Authentication is completed using a digital signature certificate or an electronic verification code. After a successful upload, an acknowledgement is generated, confirming the submission. This step only marks filing completion; processing confirmation is still pending at this stage.

Validation Checks Before Submitting TDS Returns

Before submission, several checks must be completed to avoid defaults. PANs should be verified, challan amounts must match OLTAS records, and deduction dates should align with deposit timelines. Even small inconsistencies can lead to processing with a default status. Pre-submission validation reduces the need for multiple correction statements later.

Role of Accurate Bank Account Details in TDS Filing

Accurate bank account details of deductees play a crucial role in TDS processing. These details are used for refund validation and credit matching. Incorrect account numbers or IFSC codes can result in processing holds or credit mismatches in AIS and Form 26AS. Details should always be sourced from reliable documents such as bank statements or cancelled cheques.

Common Bank Detail Errors and Their Impact on Processing

Frequent errors include incorrect digit count in account numbers, outdated IFSC codes, and mismatched account holder names. Such errors can delay processing confirmation and may require filing a correction statement. In some cases, deductees may face delays in refunds or incorrect credit reflections until the issue is resolved.

TDS Return Processing and Confirmation Through TRACES

After submission, processing takes place on the TRACES portal. Deductors must request a token to track the status of the filed return. A return is considered successfully processed only when the status shows processed without default. Processing generally takes one to two weeks, but may extend if corrections or clarifications are required.

How to Verify TDS Credits in Form 26AS and AIS

Once processing is complete, deductees can verify TDS credits through Form 26AS and the Annual Information Statement. These documents reflect tax deducted and deposited against the PAN. Any discrepancy here indicates an issue in return filing, challan mapping, or deductee details and must be addressed promptly.

Filing Correction Statements for Errors and Omissions

Correction statements allow deductors to rectify errors in earlier filings. These can include PAN corrections, challan updates, deductee additions, or amount changes. After filing a correction, the return must again be processed on TRACES to achieve final confirmation. Timely corrections help prevent notices and deductee grievances.

Interest and Late Fees Applicable to Delayed TDS Returns

Delay in deposit attracts interest at specified monthly rates, while delay in filing returns results in a daily late fee capped at the return amount. These charges apply even if there is no revenue loss to the government. Prompt compliance is the only way to avoid these statutory costs.

Digital Compliance and Filing Support Using TaxBuddy

Managing TDS compliance across multiple quarters and payment types can be complex. Platforms like TaxBuddy streamline this process by combining preparation, validation, filing, correction handling, and TRACES tracking in one place. Automated checks reduce errors, while guided workflows help ensure returns are processed without default.

Key Compliance Takeaways for FY 2025–26

Accurate deduction, timely deposit, correct form selection, and proper validation are the foundation of successful TDS compliance. Processing confirmation is as important as filing itself, as unprocessed returns can still lead to notices and credit issues. A structured, end-to-end approach minimises compliance risk for the year.

Conclusion

End-to-end TDS return filing for FY 2025–26 requires consistent attention across every stage, from deduction to final processing confirmation. Proper validation, timely corrections, and regular status checks ensure deductees receive correct credit and deductors remain notice-free. For anyone looking for assistance in tax filing, it is highly recommended to download the TaxBuddy mobile app for a simplified, secure, and hassle-free experience.

FAQs

Q1. What does end-to-end TDS return filing mean for FY 2025–26? 

End-to-end TDS return filing covers the entire compliance cycle, starting from deducting tax at source, depositing it within due dates, filing quarterly TDS returns, and finally obtaining processing confirmation on TRACES. The process is complete only when the return is processed without default, and TDS credits reflect correctly in Form 26AS and AIS.

Q2. Is filing a TDS return enough, or is processing confirmation also required?

Filing alone is not sufficient. A TDS return must also be processed on TRACES. Until the status shows processed without default, the return is treated as incomplete, and deductees may not receive proper credit for the tax deducted.

Q3. What are the quarterly due dates for TDS returns in FY 2025–26? 

TDS returns are filed quarterly. The due dates generally fall at the end of July, October, January, and May for the four quarters. Missing these deadlines attracts late filing fees even if the tax has already been deposited.

Q4. Which TDS return form should be used for salary and non-salary payments? 

Form 24Q is used for salary payments, while Form 26Q applies to most non-salary domestic payments such as interest, professional fees, and contractual payments. Using the correct form is essential for successful processing.

Q5. What happens if the challan details do not match during TDS processing? 

If the challan details do not match OLTAS records, the return may be processed with default or rejected. Such mismatches usually require filing a correction statement to map the challan correctly before credits appear in Form 26AS.

Q6. Why are bank account details important in TDS returns? 

Bank account details are used for validation and refund-related checks. Incorrect account numbers or IFSC codes can delay processing confirmation and cause mismatches in AIS and Form 26AS, affecting deductees.

Q7. Can TDS returns be corrected after filing for FY 2025–26? 

Yes, correction statements can be filed to fix errors such as wrong PAN, incorrect challans, missing deductees, or bank detail mistakes. After correction, the return must again be processed on TRACES.

Q8. How long does TRACES take to process a TDS return? 

Processing usually takes 7 to 15 days, provided there are no major errors. Returns with inconsistencies or missing validations may take longer or require multiple corrections.

Q9. What penalties apply for delayed TDS return filing? 

A late filing fee is charged on a per-day basis until the return is filed, subject to a maximum limit. Interest is also levied separately for the delayed deposit of TDS, even if the return is filed on time.

Q10. How can deductees verify whether the TDS credit is correctly reflected? 

Deductees can check Form 26AS and the Annual Information Statement on the income tax portal. These statements show whether the TDS deducted by the deductor has been properly reported and processed.

Q11. Are TDS compliance rules different for non-resident payments? 

Yes, payments to non-residents involve separate sections and reporting requirements. These returns are filed in a different form and often require additional validations to avoid processing delays.

Q12. Can TDS compliance for FY 2025–26 be managed digitally from start to finish?

Yes, the entire TDS lifecycle, including preparation, filing, correction, and processing tracking, can be handled online. Digital platforms such as TaxBuddy help centralise these steps and reduce errors through automated validations.