TDS Return Due Dates for FY 2025-26

TDS, which is also known as tax deducted at source, is an income tax that the government or authority collects from the income of the recipient instantly after earning. The TDS is deducted at a specified rate decided by the authority.

As per the Income Tax Act, an individual or company can deduct TDS from their income if the payment or amount received crosses the specified limit. The government decides the TDS rate and threshold limit for services and goods for a financial year.

Several reforms were introduced in the Union Budget 2025 to tackle evolving economic needs and simplify tax compliance. These changes are effective from 1st April, 2025.

• Updated TDS slab rates: Specific income categories, like rent and professional fees, underwent revisions in TDS rates.
• Higher exemptions: The thresholds for exemptions were increased to benefit small taxpayers.
• Digital compliance measures: The authorities encourage e-filing and digital payments to make it easier for taxpayers to deduct and file TDS returns.

Below is the table mentioning the different types of payment and their TDS rates.

A company, XYZ, has lent a store or warehouse from owner A. XYZ pays a monthly rent of ₹40,000 per month, and yearly rent is ₹4,80,000. The threshold rent limit for company XYZ is ₹2 40, 000.

The TDS amount of ₹4,000 will be deducted monthly from the rent amount at a rate of 10% and deposited as a rental charge to the authorities. The warehouse owner will get a rent amount ₹36,000 per month.

Warehouse owner A can list ₹4,80, 000 as gross income in their income tax return. The person A can claim deducted TDS amount of ₹48,000 while filing the return.

The individual or entity whose TDS has been deducted needs to show the government that TDS has been deducted. This means they need to provide the details in challan-cum-statement form. Below are the different types of forms for making payments to ensure meeting the TDS payment due date:

The TDS deposit due date for FY 2025-26 is shown in the table below:

The TDS due date for every month in which the deduction was made is the 7th day of the following month. However, March is an exception. For deductions made in March, the TDS payment due date is extended to 30th April.

If the TDS payment is made after the due date or if there is a mistake or error in the forms, then the person has to face the below-mentioned penalties:

Penalty under Section 234E

• As per Section 234E, if the person fails to file a TDS challan within the due date, then the person who collects or deducts TDS needs to pay a monetary fine of ₹200 per day until the TDS is filed. The maximum fine amount is equal to the amount of TDS.

• For example, person A deducted the TDS of ₹5000 on 15 May 2023 and filed the TDS return on 18 Nov 2023 instead of the due date of 31 July 2023. Then, the delay is 110 days. The fine amount, as per calculation, needs to be 110*₹200=₹22000.

• But since this calculated amount is more than the TDS amount, which is ₹5000, in that case, person A needs to pay a fine equal to the TDS amount, which is ₹5000. Besides this, person A also needs to pay interest for delay in depositing TDS.

Penalty under Section 271H

• As per Section 271H, the person who files after the TDS quarterly return due date needs to pay a fine ranging from ₹10,000 to ₹100,000. The assessing officer decides the fine amount.

• This section also ensures a penalty for incorrect TDS submission. However, there are conditions within the Section 271H where no penalty is applied, such as:

• The tax deducted or collected at the source is paid to the credit of the government.

• The late filing fees and interest are paid to the credit of the government.

• TDS filed before the expiry period or date of one year from the due date as specified on behalf.

Penalty or Prosecution under Section 276B

• If the person fails to pay TDS credit to the central government under the provisions of Chapter XVII-B, then that case can lead to imprisonment of 3 months, which can be extended up to 7 years plus the monetary fine.

Section 201(1A) also states that the interest rate is liable for late deposits of TDS after deduction.

The rate applied in that case is 1.5% per month from the date of the TDS deduction to the actual date when the TDS is paid or deposited. This is calculated based on a month, not on days; part of a month is also considered a full month in that case.

Here’s the step-by-step process to make a TDS payment online:
1. Use your credentials to log in to the e-filing income tax portal.
2. Under the ‘e-file’ dropdown menu, head to the ‘e-Pay Tax’ option.
3. Press ‘New Payment.’
4. Select the TDS payment type - TDS on property sale, rent payment, transfer of virtual digital assets, or payment to professionals/contractors.
5. Click ‘Proceed.’
6. Enter the required details, like deductee, deductor, and deduction.
7. Select the preferred payment method to complete the payment.
8. After the transaction is confirmed, you will receive a payment challan.
9. Keep the challan safely, as it will serve as proof of payment.
The TDS online payment due date is the 7th of the following month, unless you’re filing it for March.

If TDS deductions are made under Section 194-IA for the sale of property or under Section 194-IB for rental payments, the property TDS payment due date is within 30 days from the end of the month in which the deduction was made.

For instance, if the deduction was made on 16th May, the due date for payment of TDS on the sale of property is within 30 days from 31st May. Moreover, you must submit the supporting challan-cum statements - Form 26Q for the sale of property and Form 26QC for rent, within the 30-day timeframe.

Filing a TDS return within the due date is mandatory to avoid fines and penalties from the authorities. It also ensures the collection of taxes on a regular basis. Further, if the person files the TDS quarterly return within the last date of TDS payment, then the burden of lump sum payment will be reduced.

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