Form 24Q, 26Q, 27Q, 27EQ: TDS Returns Explained — Which One Do You File?

Form 24Q, 26Q, 27Q, 27EQ: What's the Difference and Which One Do You File?

If you deduct Tax at Source (TDS) in India, you are legally required to file a TDS return every quarter. But the income tax department does not use one universal form — it uses four: Form 24Q, 26Q, 27Q, and 27EQ. Each covers a different category of payment. Filing the wrong form, or missing a form entirely, can trigger notices, interest, and penalties under Section 234E.

This guide breaks down all four forms so you know exactly which one applies to you.

Why India Has Four TDS Return Forms

The Income Tax Act separates TDS obligations by the nature of payment:

• Salary payments to residents → Form 24Q
• Non-salary payments to residents → Form 26Q
• Any payments to non-residents (NRIs / foreign companies) → Form 27Q
• Tax Collected at Source (TCS) → Form 27EQ

Most businesses file both 24Q (for their employees) and 26Q (for vendors, contractors, rent, etc.). Companies that deal with NRIs or international vendors also file 27Q. Sellers of certain specified goods file 27EQ.

Form 24Q — TDS on Salaries

Who files it: Any employer who deducts TDS from salary under Section 192.

What it covers: Salary payments to resident employees — basic pay, HRA, allowances, perquisites.

Frequency: Quarterly (Q1–Q4 of the financial year).

Annexures:
- Annexure I — Quarter-wise deduction details (filed every quarter)
- Annexure II — Employee-wise salary and tax details (filed only in Q4)

Due dates (FY 2025–26):

Key sections covered: 192 (salary), 192A (premature EPF withdrawal).

What happens after filing: The deductee (employee) gets Form 16 generated from the 24Q data on TRACES.

Form 26Q — TDS on Non-Salary Payments to Residents

Who files it: Any person or entity that deducts TDS on non-salary payments to Indian residents.

What it covers: Payments to contractors, professionals, directors, rent, interest, commission, brokerage, royalties, and more.

Common sections in Form 26Q:

Frequency: Quarterly. Same due dates as Form 24Q.

What happens after filing: The deductee gets Form 16A from TRACES for all sections covered.

Form 27Q — TDS on Payments to Non-Residents

Who files it: Any deductor making payments to non-residents (NRIs, foreign companies, overseas contractors).

What it covers: Salary, interest, royalty, fees for technical services, and any other income paid or credited to a non-resident.

Key sections covered:

Important note: If you remit money abroad — for software subscriptions, cloud services, or consultant fees — and that payment is taxable in India, Section 195 applies and you must file 27Q.

What happens after filing: The non-resident deductee gets Form 16A (for non-salary) or Form 16 (for salary under Section 192 read with 27Q).

Form 27EQ — TCS Returns

Who files it: Sellers who collect Tax at Source under Section 206C.

What it covers: TCS on sale of scrap, timber, forest produce, liquor, minerals, parking lots, toll roads, quarries, and — since FY 2020–21 — sale of goods above ₹50 lakh (Section 206C(1H)).

Frequency: Quarterly. Same due dates as TDS returns.

Note: Form 27EQ is for TCS, not TDS. The seller collects the tax, adds it to the invoice, and deposits it with the government. The buyer gets Form 27D as the TCS certificate.

Quick Reference: All Four Forms at a Glance

Common Mistakes to Avoid

Wrong form for foreign vendors. Many small businesses deduct TDS under 26Q for overseas SaaS vendors. If the vendor is a non-resident, it should be 27Q under Section 195, with a lower withholding rate under the applicable DTAA.

Missing Q4 Annexure II. Form 24Q for Q4 requires the full Annexure II with employee-wise breakup — many filers submit only Annexure I and face processing errors.

Treating TCS as TDS. Section 194Q (buyer deducts TDS) and Section 206C(1H) (seller collects TCS) are mutually exclusive. Do not file both for the same transaction.

Late filing penalties. ₹200 per day under Section 234E for every day of delay, subject to the total TDS amount. Delays beyond the due date also attract interest under Section 201(1A) at 1.5% per month on the late-deducted amount.

How HelloBooks Helps

HelloBooks auto-identifies which TDS section applies to each vendor payment, pre-fills the correct return form, and reminds you 10 days before the quarterly due date. When you run payroll, 24Q data is populated automatically from salary journals. Form 16 and 16A are generated in one click from TRACES after filing.

Frequently Asked Questions

Do I need to file all four forms?

Only the ones that apply to you. Most businesses file 24Q (if they have employees) and 26Q (for vendor payments). 27Q applies only if you make payments to non-residents. 27EQ applies only to sellers of specified goods under Section 206C.

What if I have no deductions in a quarter?

You still need to file a nil return for each form you are registered for. Skipping a quarter — even with no deductions — attracts the late filing penalty under Section 234E.

Can I revise a filed return?

Yes. Revised TDS returns can be filed on the TRACES/NSDL portal. Use the Conso file downloaded from TRACES to make corrections. There is no specific deadline for revisions, but revising late can delay Form 16/16A generation for your deductees.

What is the penalty for non-filing?

₹200 per day under Section 234E, and potential prosecution under Section 276B for willful failure to deduct or deposit.

Next Steps

Understanding which form to file is step one. Next, make sure your TAN is active, your TDS is deposited on time via ITNS 281 challan, and your TRACES account is set up to download certificates. HelloBooks handles all of this from a single dashboard.