If you have ever felt uncertain about TDS deadlines, you are not alone. Many businesses and individuals struggle to keep track of when to deposit TDS and when to file returns. Missing these timelines not only creates stress but also invites penalties from the tax department.
Timely payment and accurate return filing are essential because TDS is more than just a compliance requirement. It ensures transparency in taxation and smooth processing of your records with the Income Tax Department. Knowing the due dates in advance allows you to plan your finances better and avoid unnecessary interest or fees.
In this guide, we will explain all the important due dates for TDS payment and return filing in FY 2025-26. You will also learn about penalties, interest, online payment steps, and how you can track TDS on cryptocurrency trades.
Understanding TDS Return and Payment
TDS, or Tax Deducted at Source, is a system where tax is collected at the time of making certain payments like salaries, rent, or professional fees. The person making the payment deducts a portion of it as tax and deposits it with the government.
There are two key parts of compliance. The first is depositing the deducted TDS every month within the prescribed due date. The second is filing TDS returns on a quarterly basis. While payment ensures the government receives the tax, return filing records the details of deductions made during the period.
TDS Payment Due Dates for FY 2025-26
The due date for depositing TDS is generally the 7th of the following month. However, for deductions made in March, the due date is different depending on the type of deductor. For government deductors, the deadline is 7th April, while for others it is extended to 30th April.
Month of Deduction | Due Date for Depositing TDS |
April 2025 | 7th May 2025 |
May 2025 | 7th June 2025 |
June 2025 | 7th July 2025 |
July 2025 | 7th August 2025 |
August 2025 | 7th September 2025 |
September 2025 | 7th October 2025 |
October 2025 | 7th November 2025 |
November 2025 | 7th December 2025 |
December 2025 | 7th January 2026 |
January 2026 | 7th February 2026 |
February 2026 | 7th March 2026 |
March 2026 | 30th April 2026 (7th April for Government deductors) |
Also Read: 1% TDS on Crypto in India: How Does It Work?
TDS Return Filing Due Dates for FY 2025-26
TDS returns must be filed every quarter after depositing the deducted tax. These statements record the details of deductions and payments made to the government. Filing within the due dates is important to avoid penalties and ensure compliance.
Quarter | Period of Deduction | Due Date for Filing |
Q1 | 1st April 2025 – 30th June 2025 | 31st July 2025 |
Q2 | 1st July 2025 – 30th Sept 2025 | 31st October 2025 |
Q3 | 1st Oct 2025 – 31st Dec 2025 | 31st January 2026 |
Q4 | 1st Jan 2026 – 31st Mar 2026 | 31st May 2026 |
Forms for Filing TDS Returns
When filing TDS returns, it is important to use the correct form based on the type of payment. Each form is designed to capture specific details and ensure accurate reporting to the Income Tax Department.
Form 24Q
This form is used for reporting TDS deducted on salary payments made to resident employees. Employers must file this form every quarter to declare the TDS on salaries.
Form 26Q
Form 26Q is used for reporting TDS on payments other than salaries made to resident individuals or entities. Examples include professional fees, interest payments, and contract payments.
Form 27Q
This form is used for reporting TDS on payments other than salaries made to non-resident Indians (NRIs) and foreign companies. It applies to payments like interest, dividends, and professional charges.
Form 27EQ
Form 27EQ is used to file Tax Collected at Source (TCS) returns. Sellers who collect tax from buyers on specified goods must use this form to report details each quarter.
Penalties for Late Filing of TDS Returns
Failing to file TDS returns on time can result in strict financial consequences. The Income Tax Act prescribes both daily late fees and penalties depending on the delay and accuracy of filing.
Late Filing Fee under Section 234E
A fee of INR 200 per day is charged for every day of delay in filing TDS returns. The total fee, however, cannot exceed the total amount of TDS deducted.
Penalty under Section 271H
If TDS returns are not filed within the due date or filed incorrectly, a penalty between INR 10,000 and INR 1,00,000 may be imposed. No penalty is levied if the following conditions are met:
- The deducted tax is paid to the government.
- Late fees and interest, if any, are cleared.
- The return is filed within one year of the due date.
Example:
Suppose the TDS of INR 5,000 was deducted on 13th May 2025.
The return for Q1 was filed on 17th November 2025 instead of the due date of 31st July 2025.
The delay is 109 days, and the fee works out to:
INR 200 × 109 = INR 21,800.
Since this exceeds the TDS amount of INR 5,000, the late fee is restricted to INR 5,000.
Interest on Late Deposit of TDS
Apart from penalties, interest is also charged for failing to deduct or deposit TDS on time. The rates are fixed under Section 201(1A) of the Income Tax Act and are calculated monthly.
Nature of Default | Interest Rate | Calculation Period |
TDS not deducted | 1% per month | From date deductible to actual deduction |
TDS deducted but not paid | 1.5% per month | From date of deduction to date of deposit |
Section 201(1A)(i): Failure to Deduct TDS
- Interest at 1% per month.
- Calculated from the date tax was deductible to the actual date of deduction.
Section 201(1A)(ii): Failure to Deposit TDS After Deduction
- Interest at 1.5% per month.
- Calculated from the date of deduction to the date of actual deposit with the government.
Prosecution under Section 276B
In addition to penalties and interest, serious consequences can arise if TDS obligations are wilfully ignored. Section 276B of the Income Tax Act deals with prosecution for failure to deduct or deposit TDS.
If a deductor deliberately fails to comply, the law provides for rigorous imprisonment ranging from 3 months to 7 years, along with a fine. This applies to cases of wilful default, such as not deducting TDS at all, deducting less than required, or providing false information in TDS returns.
Such consequences highlight the importance of timely compliance. While genuine delays can often be resolved with late fees and penalties, wilful evasion may result in criminal prosecution under this section.
How to Make TDS Payment Online?
Paying TDS online ensures faster processing and convenient compliance. The Income Tax Department’s e-filing portal provides a secure method to make these payments and generate an acknowledgement challan.
Step 1: Visit the Income Tax Portal
Go to the official Income Tax e-filing portal and log in with your TAN credentials.
Step 2: Navigate to e-Pay Tax
Locate the e-Pay Tax option under the Quick Links section.
Step 3: Select Challan Type
Choose New Payment and select the relevant challan for TDS payment.
Step 4: Enter Key Details
Provide details such as Assessment Year, TAN, address, and payment type.
Step 5: Specify TDS Details
Indicate the payment category, like salaries, interest, or professional fees, along with the deducted amount.
Step 6: Choose Payment Mode
Select your preferred payment method, usually Net Banking or Debit/Credit card from authorised banks.
Step 7: Download Challan Receipt
Once payment is successful, download and save the challan receipt containing the CIN (Challan Identification Number) for your records and return filing.
How is KoinX Useful for TDS Tracking on Crypto Transactions?
For investors trading in cryptocurrencies, managing TDS can become complicated. Every trade attracts 1% TDS under Section 194S, and keeping track of these deductions manually is difficult. KoinX makes this process simpler by automating the tracking and reporting of crypto-related TDS. Here’s how it can help:
Automated Tracking of 1% Crypto TDS
KoinX integrates with more than 800+ exchanges and wallets, recording every trade and its corresponding TDS deduction automatically. This reduces errors and saves time.
Consolidated and ITD-Compliant Reports
The platform generates reports aligned with Income Tax Department requirements. These reports can be directly used for filing returns and claiming refunds, ensuring smooth compliance.
Matching with AIS and Form 26AS
KoinX reconciles TDS data with Form 26AS and AIS, helping identify mismatches early and ensuring accurate reporting in your ITR.
Simplified ITR Filing for Refunds
With KoinX, taxpayers can prepare accurate returns quickly, making it easier to claim refunds for excess crypto TDS and avoid disputes with the tax department.
Start using KoinX today to simplify TDS tracking on your crypto trades and stay fully compliant.
Conclusion
Staying compliant with TDS deadlines is essential for avoiding penalties, interest, and even prosecution. By knowing the exact payment and return filing dates, taxpayers can ensure smooth compliance and maintain proper financial discipline throughout the year.
For those dealing with cryptocurrencies, managing TDS becomes even more complex. Tools like KoinX help track deductions, generate compliant reports, and simplify filing. Start using KoinX today to manage TDS on your crypto transactions with ease and accuracy.
Frequently Asked Questions
Can TDS Be Paid Quarterly Instead Of Monthly?
No, TDS must be deposited every month by the 7th of the following month. Only the filing of TDS returns is done quarterly. For the month of March, the deadline is extended to 30th April for non-government deductors, while government offices must deposit it by 7th April.
What Happens If The TDS Return Is Filed Incorrectly?
If incorrect details are submitted, penalties under Section 271H may apply. This penalty ranges from INR 10,000 to INR 1,00,000. Additionally, late fees under Section 234E may also be charged. It is always advisable to cross-check details of PAN, amount, and challan numbers before submitting TDS returns to avoid errors.
Can TDS Be Paid Offline?
Yes, TDS can still be deposited offline through authorised bank branches using challans. However, online payment via the income tax portal is preferred as it is faster, safer, and automatically generates the challan receipt required for filing returns. Most businesses now use the online system for convenience.
Is There Any Grace Period For Delayed TDS Payments?
No grace period is allowed for delayed payments. If TDS is not deposited by the due date, interest under Section 201(1A) applies immediately. This interest is charged either at 1% or 1.5% per month, depending on whether tax was not deducted or deducted but not deposited.
Can A TDS Return Be Revised?
Yes, a TDS return can be revised if mistakes such as incorrect PAN, challan details, or deduction amounts are found. The revised return must be filed promptly to correct the records. Filing revisions ensures compliance and avoids penalties for incorrect or incomplete information in the original return.
What Is The Role Of TAN In TDS Payment?
TAN, or Tax Deduction and Collection Account Number, is mandatory for all deductors except in specific cases like property transactions. TAN ensures proper reporting and credit of TDS to the deductee. Without a valid TAN, deductors cannot deposit TDS or file returns, making it essential for compliance.
