A Refined Synopsis of TDS Forms

Tax Deducted at Source (TDS) constitutes a pivotal compliance mechanism within India’s Direct Tax framework, ensuring real-time collection of tax at the point of income generation. To administer this system with accuracy, the Income Tax Department prescribes a range of TDS forms, each corresponding to a distinct nature of transaction, payee classification, and statutory reporting requirement.

1) Form 24Q — Salary Payments

This quarterly statement pertains exclusively to tax deducted on salaries under Section 192. It encapsulates:

• Employee-specific salary particulars
• Deductions, exemptions, and reliefs claimed
• Monthly TDS remittances and year-end reconciliation

In effect, Form 24Q serves as the definitive record authenticating the employer’s statutory stewardship over payroll taxation.

2) Form 26Q — Non-Salary Domestic Payments

Form 26Q governs TDS deducted on resident payments other than salaries, including:

• Professional fees
• Contractual payments
• Rent, interest, and commission
• Brokerage and technical service charges

It is filed quarterly and covers a broad spectrum of routine domestic business transactions.

3) Form 27Q — Payments to Non-Residents

Form 27Q is designed for TDS on payments made to non-residents (including foreign companies), covering:

• Interest
• Royalties
• Fees for technical services
• Other taxable foreign remittances

It ensures compliance with withholding obligations under FEMA and Double Taxation Avoidance Agreements (DTAA).

4) Form 27EQ — TCS (Tax Collected at Source)

Although aligned with TCS rather than TDS, Form 27EQ is grouped within this compliance family. It reports:

• Tax collected at source on specified goods and transactions
• Collection remittances and ledger-wise entries

It serves as a key accountability instrument for sellers entrusted with TCS obligations.

~ by Akshitha V