TDS Return Filing Payment Due Dates, and Penalty for FY 2025-26

Tax Deducted at Source (TDS) is a method of tax collection in which a specified percentage is deducted by the payer at the time of making certain payments, such as salary, interest, or professional fees. This deducted amount is then deposited with the government on behalf of the recipient (payee). To ensure transparency and compliance, taxpayers are required to file quarterly TDS returns that provide a detailed account of the tax deducted and deposited during the period. This process helps streamline tax collection and reinforces adherence to income tax laws.

In this article, we’ll discuss the TDS payment due dates, TDS return filing deadlines, and penalties for non-compliance applicable for the Financial Year 2025–26.

Applicability: Who Needs to File TDS Returns?

TDS return filing is mandatory for all deductors who are required to deduct tax at source under the Income Tax Act. This includes:

• Companies
• Partnership firms
• Limited Liability Partnerships (LLPs)
• Proprietorships (if subject to tax audit under Section 44AB)
• Individuals and HUFs (who are liable for tax audit in the previous financial year)
• Government deductors 

Entities making specified payments such as salary, rent, professional fees, contract payments, interest, commission, etc.

If you have deducted TDS from any eligible payment, you are responsible not just for depositing it with the government, but also for filing TDS returns quarterly in the prescribed form. Failing to file can attract penalties, interest, and in extreme cases, prosecution.

TDS Return Due Dates for FY 2025–26 

If you or your business is liable to deduct Tax Deducted at Source (TDS) during the Financial Year 2025–26, it is essential to stay informed about the relevant due dates. Timely TDS payment and return filing ensure compliance with tax laws and help you avoid penalties.

TDS Payment Due Dates for FY 2025-26

TDS deducted during any month must be deposited with the government by the 7th of the following month. However, an exception applies to TDS deducted in March, where the due date is extended to April 30th for non-government deductors.

Below is a clear schedule of TDS deposit deadlines for FY 2025–26:

Note: For government deductors making TDS payments via book entry (treasury challan), the deposit must be made on the same day of deduction. However, for deductions in March, the deadline is 7th April 2026.

TDS Return Filing Due Dates for FY 2025–26

After deducting and depositing TDS to the government, deductors are required to file quarterly TDS returns. 

• Due date for filing TDS returns is the last date of the next month of the quarter.
• However, for the last quarter (Jan- Mar), the due date is 31st May,2026.

The table below shows the due date for filing TDS returns for the Financial Year 2025-26.

Timely filing of TDS returns ensures smooth processing of TDS certificates (Form 16/16A) and prevents penalties under Sections 234E and 271H of the Income Tax Act.

Forms for Filing TDS Returns: Which One to Use?

Deducting Tax at Source (TDS) and depositing it with the government is only part of your obligation. You must also file TDS returns that report the details of each deduction made. These returns are filed using specific forms, depending on the type of payment and the recipient.

Selecting the correct form is essential for accurate compliance and to avoid notices or penalties from the Income Tax Department. Below is a quick reference guide to the most commonly used TDS and TCS return forms:

Penalties for Late Payment or Filing of TDS 

Failing to deposit TDS on time or delaying the filing of TDS returns can lead to significant financial penalties under the Income Tax Act. Penalties may also apply if the returns filed contain errors or omissions.

Section 234E – Late Filing Fee

• Fee Imposed: ₹200 per day for every day of delay.
• Maximum Cap: The total fee cannot exceed the amount of TDS/TCS deducted.
• Applicability: Charged from the due date of filing till the actual date of filing.

Example: Let’s assume: TDS of ₹5,000 was deducted on 13th May 2025, TDS return for Q1 was due on 31st July 2025, and the return was filed on 17th November 2025:

• Delay: From 1st August to 17th November 2025 = 109 days
• Late Fee: ₹200 × 109 = ₹21,800
• But Cap Applies: Max fee payable = ₹5,000 (equal to TDS amount)

Note: This fee is mandatory and applies even if the return is filed a single day late.

Section 271H – Penalty for Late or Incorrect Filing

The Assessing Officer may impose a minimum penalty of ₹10,000 and up to ₹1,00,000 if:

• The TDS return is not filed within the prescribed due date.
• The return contains inaccurate details of PAN, tax amount, or challan information.

Exemption from Penalty under 271H

You will not be penalised under Section 271H if the following conditions are met:

• The TDS/TCS has been deposited with the government.
• Late filing fee and interest (if applicable) have been paid.
• The return is filed within one year from the original due date.

Timely deduction, deposit, and filing of TDS returns not only ensures smooth compliance but also helps you avoid unnecessary fees and penalties under the Income Tax Act.

Interest Rates on Late Deposit of TDS – Section 201(1A)

Failure to deduct or deposit Tax Deducted at Source (TDS) on time attracts interest under Section 201(1A) of the Income Tax Act. This interest is mandatory, and must be paid before filing the TDS return.

Below is the breakdown:

Important Note on TDS Interest Payment

•  Interest must be paid before filing the TDS return.
• Interest is calculated on a monthly basis, not per day. Even a delay of one day will be counted as a full month.
• As per Section 201(1A) of the Income Tax Act, if TDS is deducted but not deposited on time, interest is levied at 1.5% per month (or part thereof).
• This interest is calculated from the date of deduction to the date of actual deposit.

Prosecution Under Section 276B – Failure to Comply with TDS Obligations

Section 276B of the Income Tax Act, 1961, deals with the criminal consequences for failure to deduct or deposit Tax Deducted at Source (TDS) as required by law. Unlike penalties or interest, prosecution under this section can lead to imprisonment and fines.

Offenses Covered Under Section 276B

• Willful Attempt to Evade Tax: Intentionally not deducting TDS or deducting a lesser amount than required.
• Failure to Deposit TDS: Deducting TDS but not remitting it to the government within the prescribed time.
• Non-Filing of TDS Returns: Failing to furnish TDS returns within the due date.
• Filing False TDS Returns: Providing incorrect or misleading information in the TDS return.

Penalties Under Section 276B

Note: Prosecution is typically initiated in cases of willful default or fraud. Genuine delays with payment and return filing, if justified and corrected with applicable interest and fees, may avoid prosecution, but this is at the discretion of the authorities.

How to Make TDS Payment Online: Step-by-Step Guide

Paying your TDS to the government is now quick, secure, and entirely online through the official Income Tax e-Filing portal. Follow these simple steps to complete your TDS payment within the due dates:

Step 1: Visit the Income Tax Portal: Go to the official website: https://www.incometax.gov.in

Step 2: Navigate to ‘e-Pay Tax’: On the homepage, find and click on the ‘e-Pay Tax’ option under Quick Links or the main menu.

Step 3: Select Challan Type: Click ‘New Payment’, and select the appropriate challan – typically Challan No./ITNS 281 for TDS/TCS payments.

Step 4: Enter Key Details: Fill in the necessary information: 

• TAN (Tax Deduction and Collection Account Number) 
• Assessment Year
• Address
• Type of payment (e.g., TDS on salary, interest, contractor fees, etc.)

Step 5: Specify TDS Payment Details

Mention:

• Type of TDS payment
• Relevant section (e.g., 192 for salary)
• TDS amount

 Step 6: Choose Mode of Payment

Select your payment option:

• Net Banking
• Debit/Credit Card (via authorised banks)

Step 7: Generate and Save Challan Receipt

• Upon successful payment, a Challan Receipt with a CIN (Challan Identification Number) will be generated.
• Download and save this receipt—it's required when filing your TDS return.

Summing It Up: Stay Compliant, Stay Stress-Free

Understanding and complying with TDS provisions is essential for every responsible taxpayer in India. TDS not only streamlines tax collection and reduces evasion but also spreads the tax burden across the year, making it easier for both individuals and businesses.

To ensure smooth compliance:

•  Deduct TDS correctly and on time
•  Deposit the amount within the due dates
•  File quarterly TDS returns accurately
•  Stay informed about applicable forms, interest, and penalties

By following the due dates and processes outlined above, you can avoid penalties, ensure hassle-free tax filing, and contribute to a more efficient taxation system.

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