Know the Income Tax Forms 24Q, 26Q, 27Q, 27EQ, and 27D?

Basic Introduction

Form	Covers	Who files / issues	Resident / Non-resident	Quarterly due date*	Certificate to deductee / collectee
24Q	TDS on salary (Sec. 192)	Any employer deducting TDS on salaries	Residents	31 Jul / 31 Oct / 31 Jan / 31 May	Form 16 (by 15 June following FY)
26Q	TDS on non-salary payments to residents (e.g., 194C, 194J, 194H, 194I, etc.)	Any deductor paying specified sums to residents	Residents	31 Jul / 31 Oct / 31 Jan / 31 May	Form 16A (within 15 days of the due date of the statement)
27Q	TDS on payments to non-residents (Sec. 195 and others)	Any person making taxable payments to non-residents/foreign companies	Non-residents	31 Jul / 31 Oct / 31 Jan / 31 May	Form 16A (same timeline as 26Q)
27EQ	TCS – tax collected at source (Sec. 206C)	Sellers/collectors liable under 206C	Residents & non-residents (as collectees)	15 Jul / 15 Oct / 15 Jan / 15 May	Form 27D
27D	TCS certificate issued to buyers/collectees	Collector (after filing 27EQ)	—	—	Within 15 days from the due date of filing the corresponding 27EQ

*The “quarterly due date” is for the statement pertaining to Q1 (Apr–Jun), Q2 (Jul–Sep), Q3 (Oct–Dec) and Q4 (Jan–Mar) respectively. Deposit due dates for TDS/TCS are earlier — typically the 7th of the following month (and 30 April for TDS deducted in March). Always verify current year timelines before filing, as the CBDT may notify changes.

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Form 24Q — TDS on salaries

What it is:

The quarterly TDS return that employers submit, detailing tax deductions from employee salaries as per Section 192 of the Income Tax Act.

Who must file?

• Every employer who pays salary and deducts TDS (individuals, firms, LLPs, companies, government offices, etc.).

How it is structured

• Main statement – deductor details & challan info.
• Annexure I – deductee-wise details (filed every quarter).
• Annexure II/III – full year salary breakup, tax regime selection, perquisites, etc. (filed only in Q4).

Key compliance points

• Use correct PAN for every employee; invalid PAN leads to mismatch with Form 26AS and downstream notices.
• Ensure the chosen tax regime (old/new) is correctly captured for each employee.
• Match challans (CIN) accurately; incorrect mapping is a top reason for short payment demands.

Certificates issued

Employers are required to issue Form 16 to every employee by June 15 after the end of the financial year.

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Form 26Q — TDS on non-salary payments to residents

What it is: The quarterly return for most payments (other than salary) made to resident payees, such as contractor payments (194C), professional fees (194J), rent (194I), commission (194H), interest (194A), etc.

Who must file?

• Any person (including individuals and HUFs if liable under Section 194M / 194H / 194I, etc.) who deducts TDS on resident payments.

Common traps

• Wrong section code (e.g., tagging a professional as contractor) → wrong rate and interest/fee demands.
• PAN errors → 20% default deduction, mismatch in 26AS, and correction statement hassles.
• Threshold confusion – some apply per payment, others on aggregate; always read the section carefully.
• Including GST in base for TDS where it should be excluded (CBDT clarifications exist) → unnecessary excess deduction and reconciliation issues.

Certificates issued

Form 16A must be issued within 15 days after the due date for submitting the quarterly TDS return.

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Form 27Q — TDS on payments to non-residents

What it is: The quarterly TDS return for payments to non-residents/foreign companies (e.g., royalty, FTS, interest, dividends, capital gains, etc.). Generally, there is no threshold – almost every taxable payment needs evaluation for TDS.

What makes 27Q different?

• DTAA application – Lower rates may apply if tax treaty conditions (TRC, Form 10F, etc.) are satisfied.
• Form 15CA/15CB – Often required for remittances (especially above ₹5 lakh) under RBI rules.
• FX conversion – TDS has to be computed in INR; use authorised reference rates for consistency.

Certificates issued

As with Form 26Q, Form 16A must be issued within 15 days of the due date for filing the return for the relevant quarter.

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Form 27EQ — TCS statement

What it is: The quarterly statement of Tax Collected at Source (TCS) under Section 206C.

Who must file?

• Sellers/collectors liable to collect tax on specified goods/transactions (e.g., liquor, timber, minerals, certain motor vehicles, LRS remittances, etc.).

How it is different from TDS forms

• Tax is collected by the seller, not deducted by the payer.
• Earlier due dates: 27EQ is due on the 15th of the month following the quarter (vs. 31st for TDS statements).
• Buyers receive Form 27D, not Form 16/16A.

Penalties & interest

• Late filing fee (234E): ₹200 per day, capped at the TCS amount.
• Penalty (271H): ₹10,000 to ₹1,00,000 for failure/incorrect filing (subject to waiver if conditions are met).
• Interest: 1% per month for late collection/deposit.

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Form 27D — The TCS certificate (not a return!)

Form 27D is a TCS certificate issued to the buyer/collectee to confirm how much tax has been collected from them and deposited with the government. It is downloaded from TRACES after the collector files Form 27EQ.

Issuance timeline

Must be issued within 15 days from the due date of filing the corresponding 27EQ.

What it contains

• Collector and collectee particulars
• Section code and nature of goods/transaction
• Amount collected, deposit challan details, and the acknowledgement number of the filed 27EQ

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Standard quarterly due dates (statements)

• Q1 (Apr–Jun): 31 July (TDS) | 15 July (TCS)
• Q2 (Jul–Sep): 31 October (TDS) | 15 October (TCS)
• Q3 (Oct–Dec): 31 January (TDS) | 15 January (TCS)
• Q4 (Jan–Mar): 31 May (TDS) | 15 May (TCS)

Pro tip: TDS/TCS deposits are generally due by the 7th of the following month (and by 30 April for TDS deducted in March). Always check the applicable year’s CBDT notifications for any changes.

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Late fees, penalties & interest

• Late filing fee (Section 234E): ₹200 per day from due date till filing, capped at the TDS/TCS amount.
• Penalty (Section 271H): ₹10,000 to ₹1,00,000 for non-filing/incorrect filing. Can be waived if:
  • TDS/TCS is paid to the government,
  • Late fee & interest are paid, and
  • The return is filed within one year from the due date.
• Interest for non-deduction / short deduction: 1% per month (or part) from the date tax was deductible to the date it’s actually deducted.
• Interest for late deposit: 1.5% per month (or part) from the date of deduction to the date of payment.
• Prosecution (Section 276B): For willful failure to pay TDS to the credit of the Central Government (3 months to 7 years + fine). Relief provisions may apply if dues are settled before filing of return.
• Expense disallowance (Section 40(a)(ia) / 40(a)(i)): 30% (domestic) / 100% (non-resident) of the expense can be disallowed if TDS is not deducted/deposited; allowed as deduction in the year of actual payment.

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Common errors that trigger notices

• Wrong section code in 26Q & 27Q (e.g., 194C vs 194J) → wrong rate, interest & correction statements.
• PAN errors leading to default 20% rate and mismatch in 26AS/AIS.
• Challan mapping mistakes (CIN mismatch) → short payment demands.
• Missing Annexure II in 24Q Q4 → salary reconciliation failures and demands.
• Not excluding GST when section or CBDT clarification demands exclusion.
• Delays in issuing certificates (Form 16/16A/27D) → stakeholder friction & follow-up workload.

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Best practices you should institutionalise

1. Automate PAN validation and section picking logic in your ERP/accounting system.
2. Implement a maker–checker workflow: data entry → review → sign-off.
3. Reconcile 26AS/AIS/TRACES every month; don’t wait till quarter-end.
4. Maintain a live compliance calendar (returns, deposits, certificates) with alerts.
5. Use the latest RPU/FVU versions and read release notes — validation rules change.
6. Keep digital document trails for eight years: challans, acknowledgements, certificates, workings, emails.
7. Train your team annually on new sections, thresholds, and CBDT circulars.

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FAQs

1) Is Form 27D a quarterly return?

It is a TCS certificate provided to the buyer once Form 27EQ has been filed.

2) Is Form 24Q filed every quarter with detailed information on employee salaries?
Annexure I is filed every quarter. Detailed salary breakup (Annexure II/III) is filed only in Q4.

3) If I pay a non-resident once in a year, do I still need to file 27Q?
Yes, if the payment is chargeable to tax in India and TDS is deductible. There’s generally no threshold exemption.

4) When must Form 16A be given?
Within 15 days from the due date of the corresponding quarterly TDS statement (26Q/27Q).

5) What are the consequences of missing the quarterly filing deadline?
You pay a late filing fee of ₹200/day (234E) capped at the TDS/TCS amount, and may face a penalty under 271H unless you meet waiver conditions.

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Wrap-up

Think of the five forms this way:

• 24Q – TDS you took from employees.
• 26Q – TDS you took from resident vendors/payees.
• 27Q – TDS you took from non-resident payees.
• 27EQ – TCS you collected from buyers.
• 27D – The certificate you give those buyers to prove that TCS was collected and paid.

Master the purpose, the due dates, and the certificate logic — and 90% of your TDS/TCS compliance headaches disappear. The remaining 10% is process discipline: correct sections, clean PANs, accurate challan mapping, and on-time filing.

Disclaimer: Law and rates change. Always check the latest Finance Act, CBDT circulars/notifications, and TRACES/e-filing portal updates before you file.