TDS Return Due Date FY 2026-27: Quarterly Filing Dates, Deposit Deadlines & IT Act 2025 Updates

Rs. 200. Every single day. That is what a missed TDS deadline costs you  and the meter starts running the moment the due date passes, with no grace period and no waiver.

If you run a business, handle payroll, pay contractors, or manage rent payments, TDS compliance is not optional. The TDS return due date for FY 2026-27 carries extra weight this year because the Income Tax Act 2025 replaced the old Income Tax Act 1961 from 1 April 2026. New section numbers, new return forms, and new rules are now in effect. Filing under the old form numbers will get your return rejected outright.

This guide covers everything: monthly deposit deadlines, quarterly filing due dates, the new form numbers you must use, and a clear breakdown of penalties. Whether you are a business owner, a CA, or an accounts professional, these dates belong on your compliance calendar right now.

What is TDS and Who Needs to File It?

Quick Answer TDS (Tax Deducted at Source) is a system where the payer deducts a fixed percentage of tax before making a payment and deposits it directly with the government. It applies to salary, contractor fees, rent, professional charges, and more. Any business or individual whose accounts are subject to tax audit must obtain a TAN and file quarterly TDS returns.

Under Section 393 of the Income Tax Act 2025 (previously Section 192-194 of the 1961 Act), TDS applies broadly across payment categories. If your business crosses the prescribed threshold for any of these payments, you are a deductor with filing obligations.

Who Must Deduct TDS?

• Companies and firms of all sizes
• Individuals and HUFs whose accounts are tax-audited
• Government bodies and PSUs
• Anyone paying salary, rent above Rs. 2.4 lakh per year, professional fees, or contractor payments above threshold

Important: From 1 April 2026, all TDS deductions are governed by the Income Tax Act 2025. If you are handling payments that were credited or paid on or after 1 April 2026, the new Act applies. Payments made before that date remain under the old Act.

TDS Deposit Due Dates FY 2026-27: Monthly Calendar

TDS compliance happens in two stages. First, you deposit the deducted tax monthly. Then, you file a quarterly return. Missing either deadline triggers separate penalties.

For non-government deductors, the deducted tax must reach the government account by the 7th of the following month. March is the exception: the deadline extends to 30 April.

Month of Deduction	Deposit Due Date
April 2026	7th May 2026
May 2026	7th June 2026
June 2026	7th July 2026
July 2026	7th August 2026
August 2026	7th September 2026
September 2026	7th October 2026
October 2026	7th November 2026
November 2026	7th December 2026
December 2026	7th January 2027
January 2027	7th February 2027
February 2027	7th March 2027
March 2027	30th April 2027

Government Deductors: If TDS is deposited via book entry (Treasury Challan), it must be deposited on the same day as the deduction. For March, the deadline is 7th April.

TDS Return Filing Due Dates FY 2026-27: Quarter-wise Calendar

Key Rule TDS returns are filed quarterly, not monthly. Returns must be filed electronically on the Income Tax e-filing portal or TRACES after each quarter ends. Missing a quarterly deadline triggers a Rs. 200 per day late fee under Section 427 of the IT Act 2025.

 

Quarter	Period	Filing Due Date
Q1	1 April 2026 to 30 June 2026	31 July 2026
Q2	1 July 2026 to 30 September 2026	31 October 2026
Q3	1 October 2026 to 31 December 2026	31 January 2027
Q4	1 January 2027 to 31 March 2027	31 May 2027

These deadlines apply equally to Form 138, Form 140, and Form 144 under the new Act. If you are still filing for periods before 1 April 2026, use the old forms (24Q, 26Q, 27Q).

New TDS Return Forms Under Income Tax Act 2025

This is the part most businesses are getting wrong. The Income Tax Act 2025 replaced every TDS return form. Submitting an old form for post-April 2026 transactions will result in a rejected return. Here is what changed:

Old Form (IT Act 1961)	New Form (IT Act 2025)	Applicable For
Form 24Q	Form 138	TDS on salary (Section 392)
Form 26Q	Form 140	TDS on domestic non-salary payments
Form 26QB/26QC/26QD/26QE	Form 141	Property, rent, contractor payments (challan-cum-statement)
Form 27Q	Form 144	Payments to non-residents
Form 27EQ	Form 143	TCS collections from 1 April 2026 onwards

For periods before 31 March 2026 (including correction statements): Continue using old forms. Form 138, 140, 141, 143, and 144 are only for transactions from 1 April 2026 onwards.

TDS Certificates: New Form Numbers

After filing quarterly returns, TDS certificates are issued to deductees. These too have new form numbers:

• Form 130 replaces Form 16 — salary TDS certificate, due by 15 June annually
• Form 131 replaces Form 16A — non-salary TDS certificate, issued within 15 days of quarterly return filing

TDS Late Filing Penalties and Interest: What You Actually Pay

Penalty Summary Missing the TDS return due date costs Rs. 200 per day under Section 427 (old Section 234E), capped at the total TDS amount for that quarter. Late deposit of TDS attracts interest at 1% per month for failure to deduct and 1.5% per month for failure to deposit after deduction. These run separately and cannot be waived.

Nature of Default	New Section (IT Act 2025)	Old Section (IT Act 1961)	Penalty / Interest
Tax not deducted on time	Section 398(3)(i)	Section 201(1A)(i)	1% interest per month
Tax deducted but not deposited	Section 398(3)(ii)	Section 201(1A)(ii)	1.5% interest per month
Late filing of quarterly return	Section 427	Section 234E	Rs. 200 per day (max = TDS amount)
Failure to file return within 1 year	Section 461	Section 271H	Rs. 10,000 to Rs. 1,00,000
Non-deposit of deducted TDS	Section 476	Section 276B	Imprisonment 3 months to 7 years

Penalty Calculation Example

Suppose your Q1 TDS return (due 31 July 2026) is filed on 17 November 2026. Total TDS deducted is Rs. 5,000.

• Days of delay: 109 days (1 August to 17 November 2026)
• Calculated fee: Rs. 200 x 109 = Rs. 21,800
• Cap: Rs. 21,800 exceeds TDS of Rs. 5,000, so you pay Rs. 5,000 only
• But: You also owe 1.5% per month interest separately on the delayed deposit

The late fee must be paid before submitting the return. The TRACES portal will not accept the return without prior payment of the Section 427 fee.

Critical Compliance Points for FY 2026-27

The 2-Year Correction Limit

The CBDT now enforces a strict two-year window to correct TDS return errors. From 1 April 2026, any error including wrong PAN, mismatched amounts, or incorrect section references must be corrected within two years from the end of the financial year. After this window closes, TRACES will reject all correction requests.

PAN Verification is Non-Negotiable

If a deductee's PAN is invalid, inactive, or absent, the TDS rate automatically jumps to 20% or higher. Before filing any return, verify every PAN on the Income Tax portal. One wrong PAN can trigger a demand notice.

Challan Matching Before Filing

The Challan Identification Number (CIN) and tax amount on your challan must match exactly with what you enter in the return. A mismatch creates a TDS demand notice even if the actual tax was paid. Always reconcile CIN details on the Income Tax portal before compiling quarterly returns.

Old Act vs New Act: How to Select on the Portal

• For income earned in FY 2025-26 (filed as AY 2026-27): Use Income Tax Act 1961, select Assessment Year 2026-27
• For income earned from April 2026 onwards (Tax Year 2026-27): Use Income Tax Act 2025, select Tax Year 2026-27
• Getting this wrong means your TDS credit maps to the wrong year — which triggers a mismatch and a demand

Expert Insight: What Most Businesses Get Wrong

From LegalDev's Compliance Desk The most common error we see in FY 2026-27 filings is using Form 24Q for salary TDS deducted from April 2026 onwards. That form is now invalid for post-April 2026 transactions. The correct form is Form 138. Returns submitted with the wrong form get rejected at validation, and by the time the error is caught, late fees have already started running. A second common issue: businesses are not updating their payroll and accounting software to reflect new section numbers under the IT Act 2025. This creates section mismatches on challans and returns, leading to demand notices months later.

The Income Tax Department has confirmed that TDS rates and thresholds remain unchanged under the new Act. What changed is the section numbering, terminology, and the return forms. Update your systems before filing Q1 returns by 31 July 2026.

Key Takeaways

• TDS deposits are due monthly by the 7th of the following month (30 April for March). Quarterly returns are due by 31 July, 31 October, 31 January, and 31 May.
• The Income Tax Act 2025 replaced all TDS forms from 1 April 2026. Form 24Q is now Form 138. Form 26Q is now Form 140. Form 27Q is now Form 144. Using old forms gets your return rejected.
• Late filing costs Rs. 200 per day under Section 427. Late deposit costs 1.5% interest per month. Both run independently. Neither can be waived.

 

The TDS return due date for FY 2026-27 is not just a compliance checkbox. A single missed deadline can spiral into a demand notice, penalty, and interest recovery that costs far more than the original tax. Set calendar reminders now for 31 July, 31 October, 31 January, and 31 May.

Frequently Asked Questions

Is TDS return filing monthly or quarterly?

TDS is deposited monthly, but TDS returns are filed quarterly. The deposit is due by the 7th of the following month. The quarterly return is due 31 days after the quarter ends (except Q4, which gives two extra months until 31 May).

What is the TDS return due date for Q1 FY 2026-27?

The TDS return due date for Q1 (April to June 2026) is 31 July 2026. This applies to Form 138, Form 140, and Form 144 under the IT Act 2025.

What is the new form for salary TDS in FY 2026-27?

Form 138 replaces the old Form 24Q for salary TDS under Section 392 of the Income Tax Act 2025. Use Form 138 for all salary TDS filings for transactions from 1 April 2026 onwards.

Can a TDS return be revised after filing?

Yes. A revised TDS return can be filed if errors are found in the original. However, all corrections must be made within two years from the end of the financial year. After that, TRACES will reject correction requests.

What is the penalty for late TDS deposit in FY 2026-27?

If tax is deducted but not deposited on time, interest is charged at 1.5% per month under Section 398(3)(ii) of the IT Act 2025. This is calculated from the date of deduction to the date of actual deposit.

Can TDS returns be filed without TAN?

No. A Tax Deduction and Collection Account Number (TAN) is mandatory for filing any TDS return. Without a valid TAN, the portal will not accept the return.

What happens if TDS is deducted but not deposited?

The deductor is treated as an assessee in default. Interest at 1.5% per month applies. Additionally, 30% of the payment amount may be disallowed as a business expense under Section 35(b) of the IT Act 2025. In serious cases, prosecution under Section 476 can lead to imprisonment of 3 months to 7 years.

Is Form 26AS still valid for FY 2026-27?

Form 26AS remains valid for FY 2025-26 (AY 2026-27) under the old Act. For Tax Year 2026-27 under the new Act, it will be replaced by Form 168 as the Annual Information Statement.

What is the late fee for filing TDS return after due date?

The late fee is Rs. 200 per day under Section 427 of the IT Act 2025. The fee accumulates from the day after the due date until the return is filed. It cannot exceed the total TDS deducted for that quarter and cannot be waived.

Which TDS form should be used for non-resident payments?

Form 144 replaces the old Form 27Q for payments to non-residents. Use Form 144 for all non-resident TDS filings for transactions from 1 April 2026 onwards.

Need Help with GST Registration or Tax Compliance? Our experts at LegalDev handle GST registration, GST notices, cancellations, and full compliance support so you never miss a deadline. WhatsApp: +91-72172 54194  |  Call: +91-8588808388 Visit: gstregistration.co

About the Author

Rohit Kumar Jaluthariya  |  GST and Digital Compliance Specialist, LegalDev

Rohit Kumar Jaluthariya is a Digital Marketing Executive and SEO Specialist at LegalDev, managing SEO and content operations for gstregistration.co. He holds a B.Com degree and specializes in GST compliance content, AEO optimization, and tax regulatory writing for Indian businesses and Chartered Accountants. His work covers GST registration, notices, cancellations, and return filing compliance across multiple verticals.