TDS Due Date
Reminder Generator
Challan · Returns · Form 16/16A

If TDS is not deducted when required: (1) Interest under Section 201(1A): 1% per month from date when TDS should have been deducted to actual date of deduction. (2) Disallowance under Section 40(a)(ia): 30% of the payment where TDS was not deducted is disallowed as a business expense — you pay income tax on that amount as additional profit. (3) Penalty under Section 271C: Up to 100% of the TDS amount as penalty. (4) Prosecution under Section 276B: For wilful non-deduction — imprisonment of 3 months to 7 years. The 30% disallowance is the most commercially significant consequence — it effectively increases your tax cost significantly.

Yes — there are three ways to deduct TDS at a lower rate: (1) Form 15G / 15H: If the payee is an individual with income below the taxable limit, they submit a self-declaration (15G for individuals below 60, 15H for senior citizens). You accept this form and no TDS is deducted — but you must report it in your TDS return. (2) Certificate under Section 197: The payee applies to their Assessing Officer for a certificate allowing the deductor to deduct at a lower rate (or nil). You must obtain this certificate before deducting at a lower rate. (3) DTAA benefit: For non-resident payments, if the country has a DTAA with India offering a lower rate, you can deduct at the DTAA rate — but the non-resident must provide Form 10F, Tax Residency Certificate, and PE declaration.

This is a serious offence. Consequences: (1) Interest u/s 201(1A): 1.5% per month from date of deduction to date of actual deposit. (2) The deductee does NOT get credit in their 26AS for the TDS deducted until it is deposited — this affects their ITR. (3) The deductor is liable as "assessee in default" — the entire TDS amount is recoverable from the deductor. (4) Prosecution u/s 276B: Imprisonment of 3 months to 7 years for wilful failure to deposit TDS. This is why TDS deposited but not remitted is treated as embezzlement. TAXAJ helps companies facing TDS default notices with legal and procedural remedies.

The TDS return due dates for FY 2025-26 are: Q1 (Apr–Jun 2025): July 31, 2025. Q2 (Jul–Sep 2025): October 31, 2025. Q3 (Oct–Dec 2025): January 31, 2026. Q4 (Jan–Mar 2026):May 31, 2026 — note that Q4 TDS return is due on May 31, not July 31 of the next year. This is different from all other quarters which are due on the last day of the month following the quarter. Late filing penalty: ₹200 per day under Section 234E, maximum up to the TDS amount.

Yes, with a clarification: TDS should NOT be deducted on the GST component of a payment where the invoice clearly shows GST separately. The TDS is to be deducted only on the base amount (excluding GST). CBDT Circular No. 23/2017 clarified this — if GST is separately indicated in the invoice, TDS should be calculated on the invoice value excluding GST. However, if GST is not separately mentioned in the invoice and is included in the lump-sum payment, TDS must be deducted on the full amount. This is a very common error in accounts departments — ensure your TDS is being calculated on the base amount excluding GST for all vendor/contractor payments.