Step-by-Step Process to File TDS Return Online in India (FY 2025-26)
- Rashmita Choudhary
- Nov 18, 2025
- 10 min read
Filing TDS returns online ensures transparency, compliance, and timely credit of taxes deducted at source. Every deductor, whether an employer, business, or individual, must report tax deductions accurately using the Income Tax Department’s e-filing portal. The process involves registration, preparation, validation, and electronic submission of quarterly statements. The Income Tax Department has refined its e-filing system for FY 2025-26, making it easier for deductors to comply with deadlines and rectify errors quickly. With accurate filing, taxpayers can prevent penalties and ensure smooth processing of credits and refunds.
Table of Contents
Understanding TDS Return Filing for FY 2025-26
Tax Deducted at Source (TDS) is a key mechanism used by the Income Tax Department to ensure tax collection at the source of income. It requires individuals or entities making specified payments, such as salaries, rent, commissions, or interest, to deduct a certain percentage of tax before making the payment. For the financial year 2025-26, the TDS return filing process continues to follow a quarterly schedule, allowing deductors to report the details of tax deducted and deposited with the government.
A TDS return is essentially a statement submitted to the Income Tax Department that includes information about the deductor, deductees, nature of payments, amount deducted, and challan details of deposited tax. Filing accurate TDS returns ensures that the tax deducted is correctly credited to the deductee’s PAN and prevents discrepancies during the assessment of income tax returns. With digitization, the Income Tax Department has simplified the TDS filing process through online utilities, reducing paperwork and improving accuracy.
Step-by-Step Process to File TDS Return Online
The process of filing a TDS return online involves several steps that must be completed systematically to ensure accuracy and compliance with the Income Tax Act, 1961.
Registration and Login on Income Tax Portal Visit the official Income Tax Department e-filing website (www.incometaxindiaefiling.gov.in) and register your TAN (Tax Deduction and Collection Account Number) if not already done. Once registered, log in using your TAN credentials or the user ID and password provided.
Preparing the TDS Return File Using NSDL Utility
Download the Return Preparation Utility (RPU) from the NSDL TIN-NSDL website or use the forms available on the e-filing portal. Input details such as deductor and deductee PAN, amount paid, TDS deducted, and challan details. After preparing the file, validate it using the File Validation Utility (FVU) to check for any discrepancies or formatting issues.
Uploading the Validated TDS Return
Log in to the e-filing portal and navigate to the “e-File” section. Select “Income Tax Forms” followed by “File Income Tax Forms.” Choose the relevant TDS form—Form 24Q for salary, 26Q for other domestic payments, 27Q for non-resident payments, or 27EQ for TCS. Upload the validated return file and enter any additional details requested by the portal.
Verification and Submission via EVC or DSC After uploading, verify the return using an Electronic Verification Code (EVC) or a Digital Signature Certificate (DSC). The EVC is typically sent to your registered email or mobile number. Upon successful verification, the system generates an acknowledgment receipt, confirming successful submission.
Following these steps ensures smooth compliance and timely processing of TDS credits for deductees.
TDS Return Filing Deadlines and Penalties under Section 234E
TDS returns must be filed quarterly within specific deadlines to avoid penalties and interest. For FY 2025-26, the due dates are as follows:
Quarter | Period | Due Date for Filing TDS Return |
Q1 | 1 April – 30 June | 31 July 2025 |
Q2 | 1 July – 30 September | 31 October 2025 |
Q3 | 1 October – 31 December | 31 January 2026 |
Q4 | 1 January – 31 March | 31 May 2026 |
Failure to file the TDS return within the prescribed timeline attracts a penalty under Section 234E of ₹200 per day until the return is filed, subject to the total amount of TDS. Persistent delays or non-filing may also invite further penalties under Section 271H, ranging from ₹10,000 to ₹1,00,000. Timely tax filing not only prevents penalties but also ensures deductees can claim TDS credits without discrepancies.
TDS Return Forms and Their Applicability (Form 24Q, 26Q, 27Q, 27EQ)
Different forms are prescribed under the Income Tax Act for filing TDS returns, depending on the type of payment and deductee category.
Form 24Q: Used for TDS on salaries paid to employees under Section 192. It includes details of salary income, tax deductions, and allowances.
Form 26Q: Applicable for TDS on all payments other than salaries made to resident individuals or entities, such as rent, professional fees, or commissions.
Form 27Q: Used for payments made to non-residents, such as interest, royalties, or technical fees, where tax is deducted under Section 195.
Form 27EQ: Relevant for filing Tax Collected at Source (TCS) returns, typically applicable to sellers collecting tax on specified transactions.
Selecting the correct form ensures that the TDS return aligns with the nature of payments and the applicable tax provisions.
Online Correction of TDS Return via TRACES Portal
After filing, if any errors are identified in the TDS return—such as incorrect PAN details, challan mismatch, or overstatement of TDS—corrections can be made online. The TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal allows deductors to request corrections easily.
Steps for correction include:
Log in to the TRACES portal using your TAN credentials.
Navigate to “Defaults” → “Request for Correction.”
Select the type of correction required (PAN, challan, deductee details, etc.).
Submit the request and upload supporting documents if needed.
Once approved, download the corrected acknowledgment for records.
Online correction reduces the administrative burden of refiling and ensures data accuracy, preventing mismatches in TDS credits and Form 26AS.
Important Details Required from Bank Account for TDS Filing
Bank account information plays an essential role in TDS filing, particularly for e-verification and refund processing. The deductor must ensure that accurate details are entered during the filing process to avoid issues.
The following details from the bank account opening form are generally required:
Account holder’s name (matching PAN details)
Bank account number
IFSC code
Bank branch details
Registered mobile number and email ID
During the e-verification process, the Electronic Verification Code (EVC) can be generated through the registered bank account, making it essential to have accurate banking information. Any discrepancy or incorrect data can delay refund processing or cause rejection of verification requests.
Benefits of Filing TDS Return Online through TaxBuddy
Filing TDS returns through TaxBuddy offers several advantages over manual or traditional methods. TaxBuddy’s platform simplifies complex compliance procedures with automation and expert assistance.
Automated Data Validation: Reduces the chance of errors during entry and verification.
Pre-filled Information: Fetches PAN and challan data directly, minimizing manual input.
Real-Time Updates: Provides instant alerts on filing deadlines and status tracking.
Expert-Assisted Filing: Offers professional support to ensure accurate and timely submission.
Data Security: Uses advanced encryption to protect taxpayer information.
With its user-friendly interface and smart features, TaxBuddy ensures that taxpayers can manage TDS compliance with minimal effort and maximum accuracy.
Conclusion
Accurate and timely filing of TDS returns ensures seamless credit reflection for deductees and prevents unnecessary penalties. With digital utilities like the e-filing portal and TRACES, compliance has become faster and more efficient. 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. The app provides guided filing, real-time tracking, and expert support for complete peace of mind.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy provides flexibility by offering both self-filing and expert-assisted tax filing options. The self-filing plan is designed for users who prefer to handle their own returns with the help of automation. It uses an AI-driven interface that auto-fetches details from Form 16, PAN, and AIS/TIS data to ensure accuracy. Users are guided step-by-step through the process, reducing the chances of manual errors. On the other hand, the expert-assisted plan connects the taxpayer directly with a qualified tax professional who reviews all documents, applies the correct deductions and exemptions, and files the return on behalf of the taxpayer. This dual approach ensures that both tech-savvy filers and those seeking professional support can file accurately and confidently.
Q2. Which is the best site to file ITR?
The Income Tax Department’s official e-filing portal is the government’s authorized platform for submitting tax returns. However, many taxpayers prefer using private, AI-driven platforms for added convenience and accuracy. Among them, TaxBuddy stands out due to its automation capabilities, real-time validation checks, and expert review mechanism. The platform minimizes the chances of data mismatches and missed deductions, ensuring that the filing process is smooth and compliant with the latest Income Tax Act provisions. Additionally, TaxBuddy’s interface is simple enough for beginners while offering advanced support for professionals, NRIs, and business owners.
Q3. Where to file an income tax return?
An income tax return can be filed either directly through the official Income Tax Department portal at www.incometax.gov.in or through trusted online platforms like TaxBuddy. Filing through the official portal is free but requires manual entry and understanding of multiple forms. TaxBuddy simplifies this process by automatically fetching data from your Form 16, PAN, and bank statements. It ensures all mandatory fields are completed, deductions are accurately claimed, and computations are validated before submission. The platform also provides post-filing support, such as notice handling and refund tracking, which most government portals do not offer in detail.
Q4. What documents are needed to file a TDS return online?
Filing a TDS return online requires specific documents to ensure that all deducted taxes are properly reported. The mandatory documents include the TAN (Tax Deduction and Collection Account Number) of the deductor, PAN details of all deductees, details of the tax challans used for TDS deposit, and the payment summary for each quarter. Additionally, the return file must be validated using the File Validation Utility (FVU) available on the NSDL website to confirm that the data is error-free and formatted correctly. Maintaining accurate documentation ensures that the return is accepted without rejection or mismatch errors during processing.
Q5. Is it mandatory to file TDS return electronically?
Yes, electronic filing of TDS returns is mandatory for all corporate, government, and institutional deductors as per the Income Tax Department’s regulations. Manual filing is no longer accepted for these entities, ensuring standardization and faster processing. Electronic filing helps the government reconcile tax credits efficiently and allows deductees to view their updated TDS records in Form 26AS and AIS. For smaller deductors or first-time filers, digital platforms like TaxBuddy provide guided steps to prepare, validate, and submit returns online without requiring in-depth technical knowledge of the process.
Q6. What happens if I miss the TDS return filing deadline?
If the TDS return is not filed within the prescribed deadline, the deductor becomes liable to pay a late filing fee under Section 234E of the Income Tax Act. The penalty is ₹200 per day from the due date until the return is filed, subject to the total TDS amount. If the delay extends or the return remains unfiled, the deductor may also face an additional penalty under Section 271H, ranging from ₹10,000 to ₹1,00,000. Moreover, delayed filing may cause issues for deductees in claiming TDS credits or filing their own returns on time. Hence, staying compliant with quarterly deadlines is essential.
Q7. Can I file a revised TDS return after submission?
Yes, revised TDS returns can be filed to correct any errors or omissions in the originally filed statement. Common corrections include updating PAN details, rectifying challan mismatches, or adjusting the reported amount of TDS. To file a revised return, the deductor must log in to the TRACES portal, request a correction under the relevant section, make the necessary amendments, and submit the updated file. Once the revised statement is processed, a new acknowledgment number is issued. Filing a corrected TDS return helps maintain accurate records and prevents discrepancies in deductees’ Form 26AS.
Q8. How can I e-verify my TDS return?
E-verification of TDS returns can be done through several secure methods provided by the Income Tax Department. The most common option is generating an Electronic Verification Code (EVC) through a linked bank account, Demat account, or Net Banking. Alternatively, a Digital Signature Certificate (DSC) can be used, which is mandatory for certain entities and companies. For individual deductors, verification via Aadhaar OTP or registered email and mobile number is also available. Successful e-verification confirms submission and generates an acknowledgment receipt, marking the completion of the filing process.
Q9. What are the due dates for filing TDS returns for FY 2025-26?
The TDS return filing due dates for FY 2025-26 remain consistent with the quarterly schedule mandated by the Income Tax Department. For the April–June quarter, the deadline is 31 July 2025; for July–September, it is 31 October 2025; for October–December, it is 31 January 2026; and for January–March, it is 31 May 2026. Filing within these dates ensures the deductor avoids late fees and that all deducted taxes are properly reflected in the deductee’s account. Timely filing also ensures smooth reconciliation between Form 26AS and the TDS statement submitted.
Q10. Can incorrect bank details delay refund processing?
Yes, providing incorrect or outdated bank details can delay refund processing or cause rejection of refund credits. The refund process relies on accurate linking between the taxpayer’s PAN, bank account, and IFSC code. Any mismatch between these details can result in failed credit attempts. To avoid such issues, taxpayers should verify that their bank account is pre-validated on the e-filing portal before submitting returns. Platforms like TaxBuddy automatically prompt users to confirm or update their bank details during filing, ensuring refunds are processed directly and securely into the registered account.
Q11. How does TaxBuddy simplify TDS return filing?
TaxBuddy simplifies TDS return filing through an integrated, user-friendly digital platform that combines automation with expert support. It auto-fetches data from PAN, challans, and payment records, significantly reducing manual input errors. The platform validates TDS entries using the NSDL utility and alerts users about any mismatches before submission. Users also receive notifications for upcoming deadlines to prevent late filing penalties. Additionally, expert tax professionals are available to review returns, offer corrections, and ensure complete compliance with the latest Income Tax Act provisions. This blend of technology and human expertise makes TDS filing effortless and accurate.
Q12. Can individuals use TaxBuddy for TDS filing or only businesses?
TaxBuddy caters to both individuals and businesses that are required to deduct and deposit TDS. Employers deducting tax on salaries, professionals paying contractors, or landlords receiving rent can all use the platform for TDS return filing. For individuals, it provides guided steps and automated data fetching from Form 16 and PAN. For businesses, it supports bulk uploads, multi-deductee entries, and real-time compliance tracking. Whether for a single employee or a large organization, TaxBuddy ensures that every deductor meets quarterly filing obligations without errors or missed deadlines.
