TDS Compliance Guide
Complete guide to managing quarterly TDS compliance (24Q, 26Q, 27Q, 27EQ) through Practicore. This guide covers setup, return preparation, and the 6-step compliance process.
Before You Begin#
Ensure you have the following ready before starting the compliance process:
Deductor Details Required
- • TAN Number (10-character)
- • Deductor Name (as per TAN registration)
- • Deductor PAN
- • These details must match your TRACES registration exactly
TDS Payments Data
For each deductee, you need:
Add all your TDS payments before starting e-filing. The system automatically includes eligible payments based on the return type and quarter.
One-Time Setup#
Complete this step once. You won't need to repeat it for future compliance work.
Configure TAN Details#
Go to Settings → Organization
Enter your TAN Number (e.g., ABCD12345E)
Enter Deductor Name (exactly as registered with TAN)
Enter Deductor PAN
Click Save
Ensure the TAN and Deductor Name match exactly with your TRACES registration. Mismatches will cause filing failures.
Creating a TDS Return#
Before e-filing, you need to create a return record that groups your TDS payments.
Return Types
Steps to Create a Return#
Navigate to Trackers → TDS Tracker
Click on the"Quarterly Returns"tab
Click the"Create Return"button
Select the Client from the dropdown
Choose Return Type (24Q, 26Q, 27Q, or 27EQ)
Select Financial Year (e.g., FY2025-26)
Select Quarter (Q1, Q2, Q3, or Q4)
Choose Form Type (ORIGINAL for first filing)
Click"Create Return"
Use ORIGINAL for first-time filing. Use CORRECTION to fix errors in a filed return (requires token number). Use REVISE to update a previously filed return.
The 6-Step E-Filing Process#
Once your return is created, follow these steps to file it with TRACES. The entire process takes approximately 15-20 minutes.
Review Details
Review all return details before proceeding. This step ensures your data is correct.
Click on the return from the list to open details
Click"Start E-Filing"button
The Filing Wizard opens
Verify client name and TAN number
Check deductor name and PAN
Review total payments and TDS amount
Click"Start E-Filing Process"
Generate TXT File
The system generates a TXT file in NSDL format containing all your TDS payment data.
Click"Generate TXT File"button
Wait for generation (usually under 5 seconds)
System validates all payment data
TXT file URL is generated
Optional: Download TXT file to review
Click"Next Step"to proceed
If you see validation errors, fix the payment data (missing PAN, invalid challan, etc.) and retry. Common issues include missing deductee PAN or invalid challan details.
Download CSI File
Download the Consolidated Statement Information (CSI) file from TRACES. This requires manual OTP verification.
You need to log in to TRACES portal separately to get the OTP.
Open TRACES portal (tdscpc.gov.in) in a new tab
Log in with your TAN credentials
Request OTP for CSI download
Copy the 6-digit OTP
Return to Practicore filing wizard
Enter the OTP in the field
Click"Download CSI File"
Wait for download (usually under 10 seconds)
Click"Next Step"
Generate FVU
File Validation Utility (FVU) validates your TXT file against the CSI data and generates Form 27A.
Click"Generate FVU"button
Validation job starts (async process)
Progress indicator shows status
System polls every 5 seconds
Wait for completion (1-3 minutes)
Review any validation warnings
FVU file and Form 27A are generated
Optional: Download files for records
Click"Next Step"
The FVU may show warnings or errors. Warnings can usually be ignored, but errors must be fixed before proceeding. Common errors include PAN-name mismatches.
E-File to TRACES
Submit the validated FVU file and Form 27A to TRACES for processing.
Click"E-File Return"button
Filing job starts (async process)
System submits files to TRACES
Progress indicator shows status
Wait for completion (3-5 minutes)
ARN (Acknowledgment Receipt Number) is received
Filing timestamp is recorded
Click"Next Step"to view acknowledgment
View Acknowledgment
Congratulations! Your return has been filed. View and download your acknowledgment.
Your TDS return has been successfully filed with TRACES!
Managing Returns#
View Return Status
Track status from Draft to Acknowledged in real-time
Download Files
Download TXT, CSI, FVU, and Form 27A anytime
Retry Failed Steps
Resume from the failed step without starting over
Export to CSV
Export all returns data for your records
Return Status Lifecycle#
Troubleshooting#
Common issues and how to resolve them:
TAN number not configured
Go to Settings → Organization and enter your TAN Number, Deductor Name, and Deductor PAN.
No eligible payments found
Ensure you have added TDS payments for the selected quarter and return type. Payments must have status 'DEDUCTED' or 'DEPOSITED'.
CSI download failed - Invalid OTP
Log in to TRACES portal again and request a fresh OTP. OTPs expire in 5 minutes.
FVU generation timeout
Wait a few minutes and check the return status. If still processing, try refreshing the page. Contact support if the issue persists.
E-filing failed - Validation error
Review the validation messages, fix any data errors in your TDS payments, then regenerate TXT and FVU files.
TXT file format is outdated
Click 'Regenerate TXT' to create a new TXT file with the updated format. This is required for older returns.
Frequently Asked Questions#
Quick Reference#
Filing Deadlines (FY 2025-26)
Useful Links
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