TDS Return Due Dates for FY 2026–27 — Updated as Per IT Act 2025
Staying compliant with TDS deadlines is one of the most fundamental obligations for any business, employer, or deductor operating in India. For Financial Year 2026–27, the compliance landscape has undergone a significant structural shift — the Income Tax Act, 1961 has been replaced by the Income Tax Act, 2025, bringing revised section numbers, new form numbers, and updated reporting structures.
This article provides a complete, practitioner-grade reference covering quarterly filing deadlines, monthly challan deposit dates, the critical March exception, new form numbers under IT Act 2025, and the full penalty matrix — all mapped with legacy section cross-references for practitioners still working across both frameworks.
What is TDS?
Tax Deducted at Source (TDS) is a mechanism under which the person making a specified payment (the deductor) is required to deduct a predetermined percentage of tax before releasing the balance to the recipient (the deductee). The deducted amount must then be deposited with the government and reported through structured quarterly returns.
TDS applies broadly to:
- Salary disbursements to employees
- Professional and technical service fees
- Contractor and subcontractor payments
- Commission or brokerage payouts
- Rent for land, buildings, or machinery
- Interest, dividends, and royalties above threshold limits
Any person or entity whose accounts are subject to tax audit, or who makes payments above statutory thresholds in the above categories, must obtain a Tax Deduction Account Number (TAN) and manage TDS compliance.
Quarterly TDS Return Filing Deadlines — FY 2026–27
TDS returns are filed electronically on the TRACES or Income Tax e-filing portal after the close of every quarter. The due dates for FY 2026–27 are as follows:
| Quarter | Period Covered | Filing Due Date |
|---|---|---|
| Q1 | 1st April 2026 – 30th June 2026 | 31st July 2026 |
| Q2 | 1st July 2026 – 30th September 2026 | 31st October 2026 |
| Q3 | 1st October 2026 – 31st December 2026 | 31st January 2027 |
| Q4 | 1st January 2027 – 31st March 2027 | 31st May 2027 |
Returns must be filed using the applicable form under IT Act 2025 — see the Form Migration section below.
Monthly TDS Challan Deposit Deadlines — FY 2026–27
TDS compliance is a two-stage process. Quarterly returns report the deductions; monthly challans deposit the tax with the government. For non-government deductors, the tax deducted during a month must be remitted by the 7th day of the subsequent month.
| Month of Deduction | Deposit Due Date | Month of Deduction | Deposit Due Date |
|---|---|---|---|
| April 2026 | 7th May 2026 | October 2026 | 7th November 2026 |
| May 2026 | 7th June 2026 | November 2026 | 7th December 2026 |
| June 2026 | 7th July 2026 | December 2026 | 7th January 2027 |
| July 2026 | 7th August 2026 | January 2027 | 7th February 2027 |
| August 2026 | 7th September 2026 | February 2027 | 7th March 2027 |
| September 2026 | 7th October 2026 | March 2027 ⚠ | 30th April 2027 |
TDS deducted during March 2027 must be deposited by 30th April 2027 — not 7th April. This is one of the most frequently missed TDS compliance deadlines. The extended deadline applies specifically to the month of March for all non-government deductors.
Government Deductors — Separate Rule
For government departments depositing TDS through book entry (Treasury Challan), the deposit must be made on the same day of deduction. For March deductions by government deductors, the deadline is 7th April (not 30th April).
New TDS Forms Under IT Act 2025 — Form Migration Table
The Income Tax Act, 2025 has replaced all existing TDS return forms. If you or your accounting software continue using the old form numbers, returns will be rejected at the TRACES/Protean portal. Update your systems immediately.
| Old Form (ITA 1961) | New Form (IT Act 2025) | Applicable For | |
|---|---|---|---|
| → | Form 138 | Salary payments to employees | |
| → | Form 140 | Domestic non-salary payments | |
| → | Form 141 | Challan-cum-statement for property and asset transactions | |
| → | Form 144 | Payments to non-residents | |
| → | Form 130 | TDS certificate for salary (annual, due by 15th June) | |
| → | Form 131 | TDS certificate for non-salary (within 15 days of return filing) |
Ensure your accounting software, payroll system, and ERP are updated to use the new form numbers with effect from FY 2026–27. Filing under old form numbers will result in submission rejections and may trigger late filing fees under Section 427 (Old u/s 234E).
Penalties and Interest for Non-Compliance — IT Act 2025
Failing to meet TDS deposit and filing deadlines attracts significant financial penalties and, in serious cases, criminal prosecution. The table below reflects updated section numbers under the IT Act 2025, with legacy references for cross-referencing.
| Default | Section — IT Act 2025 | Old Section — ITA 1961 | Consequence |
|---|---|---|---|
| Tax not deducted on time | § 398(3)(i) | § 201(1A)(i) | 1% interest per month or part thereof |
| Tax deducted but not deposited | § 398(3)(ii) | § 201(1A)(ii) | 1.5% interest per month or part thereof |
| Late filing of quarterly TDS return | § 427 | § 234E | ₹200 per day of default (capped at TDS amount for that quarter) |
| Failure to file TDS statement within due date | § 461 | § 271H | ₹10,000 to ₹1,00,000 penalty |
| Prosecution for non-payment of deducted tax | § 476 | § 276B | Rigorous imprisonment — 3 months to 7 years |
The daily fee under Section 427 (Old u/s 234E) accumulates from the due date until the actual filing date. However, the total accumulated penalty cannot exceed the total TDS deducted during that specific quarter. File on time — the fee begins accruing from day one, not after a grace period.
Critical Compliance Checklist — FY 2026–27
Before closing each month and each quarter, verify the following:
- ✅ TAN is active and registered on the TRACES/e-filing portal
- ✅ PAN of every deductee has been verified — invalid or inoperative PAN triggers a higher deduction rate
- ✅ TDS deposited by 7th of the following month (30th April for March deductions)
- ✅ Challan Identification Number (CIN) matches exactly on the Income Tax Department portal before compiling quarterly returns
- ✅ Quarterly returns filed using the correct new form — Form 138, 140, 141, or 144 as applicable
- ✅ TDS certificates issued within prescribed timelines — Form 130 (salary) by 15th June; Form 131 (non-salary) within 15 days of return filing
- ✅ Correction window noted — CBDT enforces a strict 2-year window from end of financial year to correct structural errors or wrong PAN entries
Frequently Asked Questions
Is TDS return filing monthly or quarterly?
TDS is deposited monthly (by the 7th of the following month), but returns are filed quarterly on the TRACES or e-filing portal.
What happens if I use the old form numbers (24Q, 26Q, 27Q) after FY 2026–27?
Returns filed under old form numbers will be rejected by the TRACES/Protean system. This will be treated as non-filing and may attract a late filing fee under Section 427 (Old u/s 234E). Switch to the new forms — 138, 140, 141, 144 — immediately.
Can a TDS return be revised after filing?
Yes. If any error is found in the original return, a revised TDS return can be filed to correct the details. However, CBDT enforces a strict 2-year correction window from the end of the relevant financial year.
Can TDS returns be filed online?
Yes. TDS returns are filed electronically through the prescribed utility and submitted via the TRACES/Protean system. Physical filing is not permitted.
Is the March 2027 TDS deposit deadline really 30th April and not 7th April?
Yes. For non-government deductors, TDS deducted during March is due by 30th April — not 7th April. This is a statutory provision and applies uniformly. Government deductors depositing through book entry must deposit by 7th April for March deductions.
Summary
TDS compliance for FY 2026–27 demands attention on three fronts simultaneously: the new form numbers under IT Act 2025, the updated section references for penalties, and the unchanged but frequently missed March deposit exception. Managing all three correctly — and on time — keeps your business penalty-free and audit-ready.
If you need help with TDS registration, return filing, challan deposits, or resolving a CPC demand, contact the EFILETAX team.
As per IT Act 2025 | Updated June 2026 | Source: efiletax.in