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TDS Return Due Dates Tax Year 2026‑27
Complete compliance calendar, new thresholds, and massive Finance Act 2025 updates
Filing TDS (Tax Deducted at Source) returns accurately and on time is the bedrock of tax compliance in India. From April 1, 2026, the monumental Income Tax Act, 2025 goes into effect, completely replacing the 1961 Act. It replaces the old concepts of “Financial Year” and “Assessment Year” with a unified “Tax Year”, abolishes several redundant provisions, and raises crucial TDS thresholds.
This guide covers every deadline for Tax Year 2026‑27 (formerly FY 2026-27), explains the active penalty provisions, details the sweeping changes introduced by the Finance Act 2025, and provides a ready-to-use checklist so you stay completely compliant under the new regime.
Quarterly Returns per Year
Late Fee u/s 234E
New 194J/194-I Thresholds
Last Date for Q4
1. Understanding TDS Returns Under the New Act
Every person deducting tax at source must deposit the tax with the government and file a quarterly TDS return. For Tax Year 2026‑27, while over 60 old TDS sections have been consolidated into just 3 parent sections (e.g., Section 393), the familiar quarterly reporting rhythms and key forms remain largely in place.
1.1 Primary TDS Return Forms
Form 24Q
For TDS on salaries. Every employer must file this quarterly, even if no tax was deducted.
Salary TDS
Form 26Q
For TDS on all domestic payments other than salaries – contractors, rent, professional fees, partner remuneration, etc.
Non‑Salary TDS
Form 27Q
For TDS on payments to non‑residents (excluding salary). Includes foreign remittances.
Non‑Resident TDS
Form 27EQ
For TCS (Tax Collected at Source) returns. Used by sellers of specified goods and authorized dealers.
TCS Returns
Under the Income Tax Act 2025, the four separate PAN-based property and rent TDS forms (formerly 26QB, 26QC, 26QD, 26QE) have been unified into a single form: Form 141, applicable exclusively from Tax Year 2026-27 onwards.
2. Quarterly Due Dates for Tax Year 2026‑27
The quarterly filing deadlines remain aligned with the established pattern. Government deductors (where TDS is deposited through book entry) have the same deadlines as non‑government deductors for all quarters.
| Quarter | Period | Due Date (All Deductors) |
|---|---|---|
| Q1 | Apr – Jun 2026 | 31st July 2026 |
| Q2 | Jul – Sep 2026 | 31st October 2026 |
| Q3 | Oct – Dec 2026 | 31st January 2027 |
| Q4 | Jan – Mar 2027 | 31st May 2027 |
* TDS certificates (Form 16/16A) for the Q4 period must be issued by 15th June 2027.
3. Penalties for Late Filing of TDS Returns
The penalties are mandatory and calculated automatically by the TRACES portal. While the new Act simplifies compliance, it has not relaxed the penalties for failure to file:
Late Filing Fee (Sec 234E)
₹200 per day of delay, maximum up to the total TDS amount of the quarter. Levied automatically upon late filing.
₹200/day
Interest u/s 201(1A)
If TDS is not deducted or not deposited on time, interest at 1.5% per month (or part thereof) is charged until deposited.
1.5% p.m.
Prosecution
Willful failure to deposit TDS can lead to rigorous imprisonment and fines, though recent budgets have offered some leniency if paid before return filing.
Criminal Liability
4. Practical Compliance Checklist for Error‑Free Filing
Under the new Income Tax Act 2025 framework, your workflow needs adjustment. Use this checklist every quarter:
- No More Non-Filer Checks: Sections 206AB and 206CCA have been omitted. You no longer need to verify if deductees have filed their previous ITRs to apply higher penal rates.
- PAN‑TAN Verification: Ensure all deductee PANs are active. An invalid PAN still attracts a flat 20% TDS and disallows credit.
- New Partner Payments (Sec 194T): If your partnership firm or LLP pays remuneration, salary, commission, or interest to its partners exceeding ₹20,000 annually, you must now deduct 10% TDS.
- TDS on Purchase of Goods (194Q): Continue deducting 0.1% TDS on purchases exceeding ₹50 lakh. Note: TCS on the sale of goods under the old 206C(1H) is now abolished.
- Correct Challan Details: Match BSR code, challan serial number, and date exactly with OLTAS data. Mismatches remain the #1 reason for default notices.
5. Massive Changes Under Finance Act 2025 (Effective April 2026)
The transition to the new Act brings significant rationalizations to ease the burden on small businesses and taxpayers. Ensure your accounting systems are updated for the following:
- Higher Thresholds for TDS:
- Professional Fees (194J): Threshold raised from ₹30,000 to ₹50,000 per category.
- Rent (194-I): The limit has shifted from a ₹2.4 lakh annual aggregate to a simpler ₹50,000 per month threshold.
- Bank Interest (194A): Raised to ₹1,00,000 for senior citizens and ₹50,000 for non-seniors.
- Dividends & Mutual Funds: Threshold raised from ₹5,000 to ₹10,000.
- TCS on Goods Abolished: The heavily criticized Section 206C(1H) (TCS on sale of goods above ₹50 lakh) has been completely withdrawn, resolving major compliance overlaps with 194Q.
- LRS TCS Threshold Raised: The threshold for TCS on remittances under the Liberalised Remittance Scheme (LRS) and overseas tour packages has been increased from ₹7 lakh to ₹10 lakh. Furthermore, TCS on education remittances out of a loan has been made Nil.
- E-commerce TDS (194-O): TDS deducted by e-commerce operators has been rationalised to 0.1% on the gross amount of sales.
- Securitisation Trusts (194LBC): The punishing 25%/30% rates have been slashed to a flat 10%.
- Manpower Supply Explicitly Covered: Supplying manpower is now explicitly defined as “work” under the new Section 393 (formerly 194C), settling years of litigation. Deduct 1% (individuals/HUF) or 2% (others).
6. Infographic: Your Tax Year Compliance Calendar
Apr‑Jun 2026
File by 31st Jul 2026
Jul‑Sep 2026
File by 31st Oct 2026
Oct‑Dec 2026
File by 31st Jan 2027
Jan‑Mar 2027
File by 31st May 2027
7. Penalty & Fee Computation – Visual Guide
📊 Late Filing Fee (Section 234E) = ₹200 per day
8. Frequently Asked Questions
No. Under the Finance Act 2025, the punitive sections 206AB and 206CCA have been entirely omitted. You no longer need to verify if the deductee has filed their previous returns to avoid higher TDS rates. You only need to verify their PAN.
Yes. Even a nil return must be filed. Failure to file a nil return triggers the automatic penalty of ₹200 per day under Section 234E, as the law considers it a late filing.
Yes. A major addition is Section 194T, which mandates a 10% TDS on any remuneration, salary, commission, or interest paid to partners by a firm/LLP if the aggregate exceeds ₹20,000 in a year.
9. Final Checklist Before Filing
- Update your accounting/payroll software to recognize the new thresholds (₹50k for 194J/194-I) and the 194T partner logic.
- Stop collecting TCS on the sale of goods (old 206C(1H)).
- Collect and verify all deductee PANs.
- Match TDS deposits with challans and OLTAS.
- Run the latest TRACES validation utility.
- File before midnight of the due date (31st Jul, 31st Oct, 31st Jan, 31st May).
The Income Tax Act 2025 brings massive simplifications to thresholds and removes overlapping compliance burdens. However, deadlines and late fees remain strict. Set reminders 10 days before the quarterly deadlines—a small investment in discipline saves thousands in penalties.
— End of Guide —
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