What is TDS and who needs to deduct it?

TDS (Tax Deducted at Source) must be deducted by employers, businesses, and individuals making specified payments like salary, rent, professional fees, and contractor payments above threshold limits.

What are the due dates for TDS return filing?

TDS returns are due quarterly: Q1 by July 31, Q2 by October 31, Q3 by January 31, and Q4 by May 31. Late filing attracts penalties of Rs 200 per day under Section 234E.

Which TDS forms does Sunshine Accountancy handle?

We handle all TDS forms including 24Q (salary TDS), 26Q (non-salary TDS), 27Q (NRI payments), and 27EQ (TCS). Our experts ensure accurate and timely filing.

How to download TDS certificate (Form 16/16A)?

TDS certificates can be downloaded from the TRACES portal after filing returns. We assist with generating and distributing Form 16 to employees and Form 16A to vendors.

What is the penalty for late TDS filing?

Late filing attracts Rs 200/day penalty (Section 234E), plus Rs 10,000-1,00,000 penalty (Section 271H). Interest at 1-1.5% per month applies on late TDS deposits. Avoid penalties with our timely service.

TDS Return Filing Hyderabad — Form 24Q, 26Q, 27Q

Last Updated: April 2026 | By: Sunshine Accountancy & Co. Tax Team, Hyderabad

Need expert TDS return filing Hyderabad businesses can depend on? Tax Deducted at Source (TDS) compliance is one of the most critical — and most penalty-heavy — obligations for businesses and employers in India. At Sunshine Accountancy & Co., we handle TDS computation, deduction, deposit, return filing, and Form 16/16A generation for businesses across Hyderabad. Since 1994, we have ensured our clients never face interest, penalties, or prosecution for TDS non-compliance.

Whether you are an employer deducting TDS on salaries, a business paying contractors and rent, or a professional receiving payments subject to TDS — our team manages the entire TDS lifecycle with precision and timeliness.

What TDS Services Does Sunshine Accountancy Provide in Hyderabad?

TDS on Salary — Form 24Q

Our TDS return filing Hyderabad service for employers covers this: every employer deducting TDS from employee salaries must file Form 24Q quarterly. This involves computing tax liability for each employee based on their salary structure, declared investments, and chosen tax regime (old vs new). We prepare monthly TDS computation sheets, generate challans for timely deposit, and file quarterly Form 24Q returns. At year-end, we generate Form 16 for every employee — a mandatory document employees need for filing their own ITR.

TDS on Non-Salary Payments — Form 26Q

Payments to contractors (Section 194C), professionals (Section 194J), rent (Section 194-I), commission (Section 194H), and other non-salary categories attract TDS at varying rates. We identify the correct TDS section and rate for every payment, ensure timely deduction and deposit, and file quarterly Form 26Q returns. We also generate Form 16A (TDS certificate) for each deductee — essential for their tax filing.

TDS on Payments to NRIs — Form 27Q

Payments to non-resident Indians and foreign companies attract TDS under Sections 195, 196A, and 196D. These involve complexities like DTAA treaty rates, lower deduction certificates, and PAN-based vs treaty-based rates. We handle NRI TDS computation, ensuring the correct rate is applied and the return is filed in Form 27Q with proper reporting of the deductee’s country, treaty article, and remittance details.

TDS Compliance Health Check

Our TDS return filing Hyderabad audit service is ideal if you are already handling TDS in-house. Our compliance audit reviews your existing TDS practices — identifying missed deductions, incorrect rates, short deposits, and filing errors. We provide a detailed report with corrective actions and can file revised returns to fix past errors before the Income Tax Department catches them through their automated data matching system.

Lower Deduction Certificate Applications

If your business receives payments subject to higher TDS rates and you expect nil or low tax liability, we apply for a Lower Deduction Certificate (Section 197) with the Assessing Officer. This allows your payers to deduct TDS at a lower rate, improving your cash flow throughout the year instead of waiting for a refund after filing ITR.

Why Is Timely TDS Compliance Critical for Your Business?

TDS non-compliance carries some of the harshest penalties in Indian tax law:

Late Deposit Interest: 1.5% per month from the date of deduction to the date of deposit — this adds up quickly.
Late Filing Fee: ₹200 per day under Section 234E until the return is filed, subject to a maximum of the TDS amount.
Penalty: ₹10,000 to ₹1,00,000 under Section 271H for failure to file TDS returns within one year of the due date.
Disallowance: If TDS is not deducted or deposited, the entire expense may be disallowed under Section 40(a)(ia), increasing your taxable income.
Prosecution: In extreme cases, failure to deposit deducted TDS can lead to prosecution with imprisonment of 3 months to 7 years under Section 276B.

With Sunshine Accountancy managing your TDS, you get zero-penalty compliance — guaranteed.

How Does Our TDS Filing Process Work?

Payment Data Collection: Share your salary register, contractor payments, rent payments, and professional fee payments for the quarter via Tally export, Excel, or WhatsApp.
TDS Computation: We compute the correct TDS amount for each payment, applying the right section, rate, and any exemptions or lower deduction certificates.
Challan Preparation: We prepare TDS deposit challans with correct codes (salary vs non-salary, assessment year, etc.) and share them for your payment through your bank.
Return Filing: After the quarter ends, we compile all data, match with challan payments, validate the FVU file, and file the quarterly return on the TRACES portal.
Certificate Generation: We download and share Form 16 (salary) and Form 16A (non-salary) TDS certificates for distribution to employees and vendors.

What Are the TDS Return Filing Due Dates for FY 2026-27?

Q1 (April–June 2026): July 31, 2026
Q2 (July–September 2026): October 31, 2026
Q3 (October–December 2026): January 31, 2027
Q4 (January–March 2027): May 31, 2027

Form 16 must be issued to employees by June 15 after the financial year ends. Form 16A must be issued within 15 days from the due date of filing the TDS return for each quarter.

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Frequently Asked Questions About TDS Filing in Hyderabad

How much does TDS return filing cost in Hyderabad?

At Sunshine Accountancy, quarterly TDS return filing starts at ₹1,500 per quarter for Form 26Q with up to 10 deductees. Salary TDS (Form 24Q) starts at ₹2,000 per quarter for up to 15 employees. The fee includes TDS computation, challan preparation, return filing, and certificate generation. For businesses with higher deductee counts, custom annual packages are available. Contact us for a quote based on your specific needs.

What is the difference between Form 24Q, 26Q, and 27Q?

Form 24Q is for TDS on salary payments to employees. Form 26Q is for TDS on all non-salary payments to residents — contractors, professionals, rent, commission, etc. Form 27Q is for TDS on payments to non-residents and foreign companies. Most businesses file 24Q and 26Q every quarter. If you make any payment to NRIs or foreign entities, you also need to file 27Q.

What happens if I deduct TDS but forget to deposit it?

This is one of the most serious TDS violations. Interest at 1.5% per month applies from the date of deduction to the date of actual deposit. If the amount remains undeposited, the entire expense is disallowed under Section 40(a)(ia), increasing your taxable income. In severe cases, prosecution under Section 276B can lead to imprisonment. If you have undeposited TDS, contact us immediately — we will help you deposit it and file corrective returns to minimise penalties.

Can TDS returns be revised if there is an error?

Yes, TDS returns can be revised (called correction statements) to fix errors in PAN, amount, challan details, or deductee information. We file correction returns through the TRACES portal. Common errors include wrong PAN entries, incorrect challan mapping, and missing deductees. Our quality check process catches most errors before filing, but if corrections are needed, we handle them at no additional charge within the same quarter.

Do I need to deduct TDS if I am a small business?

TDS obligations apply based on the nature of payment, not the size of your business. If you pay rent above ₹2.4 lakh per year, contractor fees above ₹30,000 per transaction (or ₹1 lakh per year), or professional fees above ₹30,000 per year — you must deduct TDS regardless of your business size. However, individuals and HUFs not subject to audit have TDS obligations only on rent (Section 194-IB) and payments to resident contractors above ₹50 lakh (Section 194M).

Get Expert TDS Compliance for Your Hyderabad Business

For dependable TDS return filing Hyderabad trusts, act now. TDS penalties are among the costliest in Indian tax law. Do not risk them. Let Sunshine Accountancy handle your TDS deduction, deposit, filing, and certificate generation — with a zero-penalty guarantee.

Call us: +91 96763 13137
Email: hello@sunshineaccountancy.com
Visit: Sunshine Accountancy & Co., Hyderabad, Telangana

Get a Free TDS Consultation

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