TDS is Tax deductible at source. A person who is making a payment is able to deduct tax at source from the payment amount. The Govt deducts tax from the income of an employee before the income is actually paid to a person.

Here are some details on form 27Q:

The amount received by a person as an ‘income’ is paid to him AFTER the deduction of TDS. It’s done at the time of payment by an employer to an employee. The TDS Return is an indirect tax collected by the Indian Govt under the Income Tax Act. The employer/ the person who is deducting the tax at source may deduct it every month.

However, TDS is not deductible when the income is earned from the interests of savings account or NRE account or when the person’s annual income is less than 2.5 lakh!

Also, a certificate is issued by the employer/ deductor as a proof that the TDS has actually been deducted at by the employer.

According to the section 203 of the Income Tax Act, the Payer has to give/issue the certificate of deduction of tax he has made in the sources of income of the person.

TDS contributes in filing income tax return. It helps in reducing the burden of the employee as the certificate issue shows all the details about where and how the amount was deducted.


Under section 206 of the IT Act, Tax is collected at source, hence called TCS. There are different natures of income and tax is collected under the conditions mentioned in Section 206. All the details of the tax that were collected at source are mentioned in Form 27Q when TDS return are filed quarterly.

A month after the quarter ends, the due date arrives!

See, for Form 27Q when the first quarter ends on 30th June, the due date arrives at 31st July!

As the second quarter ends on 30th September, the due date arrives on 31st October.

The third quarter that ended on 31st December the due date will be arriving at one month after it, that is 31st January.

BUT AT THE END OF the FOURTH QUARTER where the ending will be 31st March,  THE DUE DATE WILL BE ARRIVING AT 31st May !!

These rules were put into action from June 2016!

What does Form 27Q contain?

√ TAN – It will be necessarily mentioned in the form.
√ It will be collected on a Quarterly basis.
√ The form comes under SECTION 206 of the Income Tax.
√TCS is tax collected at source, deducted by the payer.
√The non-govt deductors will have to mention their PAN in their form.

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