The TDS return for the July–September 2026 quarter is usually due on 31 October. If you have missed it or are about to, the cost depends on how late you file, so a late TDS return is worth fixing quickly. This guide explains which form to use, what the late fee is, and how to file late and correct defaults.
Check the Income Tax portal for any extension before you rely on the date. Due dates are sometimes extended by a CBDT notification, and this article gives the usual statutory position only.
Which TDS return form applies to you
A TDS return, also called a TDS statement, lists every deduction you made in the quarter, the PAN of each deductee and the challans used to pay the tax. The form depends on what you paid:
- Form 24Q – tax deducted on salary.
- Form 26Q – tax deducted on payments other than salary to residents, such as contractor, professional fees, rent and commission.
- Form 27Q – tax deducted on payments to non-residents.
- Form 27EQ – tax collected at source (TCS), for sellers who collect it.
A business that pays salary and also pays contractors or rent files more than one return for the same quarter. Each form is filed separately.
The Q2 due date and what it covers
Quarter 2 of the financial year runs from 1 July to 30 September. For FY 2026-27 the statutory due date for these returns is generally 31 October 2026. The return should show deductions for July, August and September, and the challans you paid for them.
Before filing, make sure the tax for each month has already been deposited. A return that shows tax deducted but not deposited will draw a default notice. Our guide to the Q2 TDS return checklist and the article on depositing TDS by the 7th cover those steps in detail, if you have not used them already.
Late fee under section 234E
If you file after the due date, a late fee applies under section 234E of the Income-tax Act, 1961. The fee is Rs 200 for each day the return stays unfiled, from the due date until you file. It cannot exceed the total TDS the return shows. Always confirm the applicable section numbers and any specific case with your CA when you read your notice.
A small worked example: if your Q2 return should have been filed on 31 October and you file it 20 days late, the fee is 20 × Rs 200 = Rs 4,000. If the TDS in the return was only Rs 3,000, the fee is capped at Rs 3,000. The fee must be paid before the return is accepted, using challan 200.
Penalty for not filing at all
Separately from the late fee, an Assessing Officer can levy a penalty for failing to file the statement on time. This is section 271H of the Income-tax Act, 1961, and the penalty ranges from Rs 10,000 to Rs 1,00,000. The penalty usually does not apply if you file the return before one year from the due date and have paid the tax, interest and late fee. That is a strong reason not to leave an overdue return pending.
Interest on late deduction and late deposit
The late fee is separate from interest. Interest is charged if you deducted tax late or deposited it late. The usual rates are 1% a month for late deduction and 1.5% a month for late deposit, each counted for a part month as a full month. Pay this interest before filing so the return can be processed without a short-payment demand. Our article on late TDS interest and the 234E fee has a longer example.
How to file a late TDS return
- Collect your TAN, deductee PANs and the challan details for July, August and September.
- Pay any interest due on late deduction or deposit.
- Compute the 234E late fee for the days of delay and pay it by challan 200.
- Prepare the return in the NSDL (Protean) File Validation Utility or your accounting software and validate it.
- Upload the validated file through the deductor login on the Income Tax portal and keep the filing receipt.
- Download Form 16A for the quarter once the statement is processed and share it with deductees.
Correcting a return that has errors
If a processed return shows a wrong PAN, an amount mismatch or an unmatched challan, file a correction statement. Log in to TRACES, download the conso file and the justification report, fix the entries and upload the correction. A correction does not wipe out the late fee on the original delay, but it does stop further notices on the mismatch.
Deductees can only claim credit for tax that appears in their Form 26AS or AIS. A missed or wrong return therefore also hurts vendors and employees, and they will usually ask you to fix it. Our guide on reconciling Form 26AS and AIS shows what they check.
Key takeaways
- Q2 TDS returns (24Q, 26Q, 27Q, and 27EQ for TCS) are usually due on 31 October – confirm any extension on the portal.
- The late fee is Rs 200 a day, capped at the TDS in the return.
- A penalty of Rs 10,000 to Rs 1,00,000 can apply if the return stays unfiled for long.
- Pay interest and the late fee first, then file and correct errors through TRACES.
- Consult your CA for specific advice on your filing position.
Keeping ledgers, TDS payable and vendor PANs in one place makes quarter-end easier; Smart Books is one way to organise the books that feed your TDS return, while your CA remains the person to confirm your filing position.
