TDS & TCS Quarterly E-Filing Return Due Dates TY (Tax Year) 2026-27

Tax Deducted at Source (TDS) at a specified rate and remitted to the government. On the other hand, for Tax Collection at Source (TCS), the receiver of the payment is liable to collect tax from the payer and then submit it to the government. For more information, you can see the TDS and TCS return filing due date with the last dates for filing for TY (Tax Year) 2026-27. E-filing returns of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are filed every quarter, and the quarterly statements are accepted under the provisions of the Income Tax Department. Be sure to check the eligibility requirements, penalty details, and filing process for this tax return.

The Income Tax Department of India modified file formats for TDS and TCS statements. Deductors/collectors need to be ready to prepare e-TDS & TCS statements according to the file formats with the help of NSDL e-Gov and return the prepared statement through third-party software and in-house software for rendering to any TIN-FCs.

“Starting from April 1, 2026, the to tax periods will change. Instead of having separate terms like “Assessment Year” and “Financial Year,” there will be a single term called “Tax Year.” This change is part of new rules introduced in the Income Tax Act of 2025.”

Period of Income	Governing Act	Reference
01 April 2025 – 31 March 2026	Income-tax Act, 1961	AY 2026-27
01 April 2026 – 31 March 2027	Income-tax Act, 2025	Tax Year 2026-27

“The concept of “Tax Year” is applicable from 01 April 2026, i.e., for income earned during FY 2026-27 onwards, and this will be referred to as Tax Year 2026-27 under the Income Tax Act 2025”

TDS and TCS statements are required to be filed every quarter. However, according to the Income Tax Department, approval of TDS/TCS statements before TY (Tax Year) 2026-27 is not allowed at the TIN. The TDS return filing due date must be accompanied by the rate of tax and other statutory compliance by the taxpayers. Users need to pass the E-TDS and TCS return file produced utilising RPU via the File Validation Utility (FVU) to make sure the format of the file is correct.

How Form Names Have Changed Under the Income Tax Rules 2026

The Income Tax Rules, 2026, in addition to new section numbers, have rolled out new form names and numbers. With the use of old form names for Tax Year 2026-27 transactions will make your certificates and returns technically non-compliant.

Details	New Form (2025 Act)	Old Form (1961 Act)
Tax deduction from salary under New Section 392 (Old Section 192)	Form 138	24Q
Tax collection when deductees are non-resident (not being a company), foreign companies and persons who are resident but not ordinary residents	Form 144	27Q
Tax deduction under New Section 393 (1) [Table Sl. 3(i)] (Old Section 194-IA)	Form 141	26QB
Tax deduction under Section New Section 393[Table Sl. 2(i)] (Old Section 194-IB)	Form 141	26QC
Tax deduction under 393 [Table Sl. 6(ii)] (Old Section 194M)	Form 141	26QD
Tax deduction in any other case	Form 140	26Q
Tax Collection at source (TCS)	Form 143	27EQ

Why TDS Compliance is Important for Businesses and Enterprises

TDS Non-compliance can make an enterprise encounter penalties, interest, and non-deduction of expenses during ITR filing. It increases cash outflow in the form of higher taxes, late fees, and penalties.

During audits and due diligence, non-compliance with TDS is highlighted. As per the tax audit, the auditor should report the non-compliances that emerged in the year. Consistent defaults under TDS can impact the credibility of the enterprise among investors, lenders, and departments.

Implementation of a Rationalization Plan for TDS/TCS 

The rationalisation of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) has been proposed by the Union Budget 2025 to facilitate the compliance challenges for the taxpayers, particularly for middle-income earners. The government has raised the threshold limits in distinct TDS sections, which has the motive to ease the process of tax. The proposed amendments are stated as follows:

Section	Present	Proposed
New Section 393 (3) [Table: Sl. No. 4] – Income by way of commission, prize, etc., on lottery tickets	15,000	20,000
New Section 393(1) [Table: Sl. No. 4(i)] (Old Section 194K) – Income in respect of units of a mutual fund	5,000	10,000
New Section 393(1) [Table: Sl. No. 1(i)](Old Section 194D) – Insurance commission	15,000	20,000
New Section 393(1) [Table: Sl. No. 1(ii)] (Old Section 194H) – Commission or brokerage	15,000	20,000
New Section 393(1) [Table: Sl. No. 2(ii).D(a)](Old Section 194-I) – Rent	2,40,000 (in a financial year)	50,000 for a month or part of a month
New Section 393(1) [Table: Sl. No. 6(iii)(Old Section 194J) – Fee for professional or technical services	30,000	50,000
New Section 393(1) [Table: Sl. No. 3(iii)] Old Section 194LA) – Income by way of enhanced compensation	2,50,000	5,00,000
New Section 394(1) [Table: Sl. No. 7] (Old Section 206C(1G)) – Remittance under LRS and overseas tour program package	7,00,000	10,00,000

Important Note: 

• The CBDT has issued Circular No. 02/2026 under Section 119 of the Income Tax Act, extending the due date for issuing TDS certificates under Section 203 to March 31, 2026. Read the official Circular
• After you submit your quarterly TDS return, you can create a TDS/TCS certificate within 15 days.
• The Tax Collected at Source (TCS) will be eliminated on remittances made for educational purposes when these remittances are financed via loans from established financial institutions (Section 80E).
• W.e.f April 1, 2025, the tax collected at source (TCS) on the purchase of goods will be removed.
• The Higher TDS rate shall be applicable in cases where the taxpayers do not furnish the PAN. 

Need to know about TDS (Tax Deducted at Source)

TDS is mentioned as Tax Deducted at Source. It is the tax amount that the government collects directly from the income of the receiver immediately after earning. At a certain percentage, the TDS is deducted. According to the IT Act, an individual or any company can deduct such tax at the source if the payment for any goods or services crosses a particular amount. 

TDS rates and the thresholds for distinct sorts of goods and services have been decided by the government for the specific fiscal year.

The services comprise the following:

• Royalty
• Technical services
• Legal fees
• Consulting
• Rent, etc. 

The individual or firm receiving the payment is said to be the deductee in the transaction where the TDS is applied. The individual or business deducting TDS from the payment is called a deductor. 

For certain sorts of payments, see the TDS rates proposed

Type of Payment	TDS Rate
Salaries	As per the tax slab
Rental charges greater than Rs. 50,000 per month or part of the month for buildings, land, plant and machinery	10% for land, 2% for plant and machinery
Prize money for a lottery, horse race, crossword puzzle, etc., is more than Rs 10,000	30%
Prize money for a lottery, horse race, crossword puzzle, etc., more than Rs 10,000	30%
Purchase of immovable property of more than or equal to Rs. 50,00,000	1%
Brokerage or commission from lottery ticket sales amounting to more than Rs 20,000	2%

For example, ABC Ltd. pays a rent of Rs 52,000 per month for a warehouse. This is above the threshold of Rs. 50000 per month for a warehouse.

Therefore, ABC Ltd. will deduct the TDS at the rate of 10%, amounting to Rs. 5200, and then pay Rs. 46800 as the monthly rental charges.

The warehouse’s owner will list Rs. 624000 gross income in his income tax return and claim a TDS of Rs. 62400, which has already been deducted, as a total tax liability credit, also known as a TDS credit. 

In other words, TCS stands for Tax Collected at Source. According to Section 206C of the Income Tax Act, sellers impose TCS on their goods and collect it from buyers at the time of sale.

Certificates of Compliance with TDS

New Form	Old Form	Issued For	Frequency	Due Date
130	16	Employer to the employees as proof of deduction of tax	Annual	June 15 every year
131	16A	Purchase of property by the resident buyer from the resident seller of the property	Quarterly	15th Aug. for April-June, 15th November for July-Sept., 15 Feb. for Oct.- Dec. and 15th June for Jan-March
133	27D	Seller (collector of TCS) to the Buyer (collectee) on TCS	Quarterly	15th Aug. for April-June, 15th November for July- Sept., 15th Feb. for Oct.- Dec. and 15th June for Jan-March
132	16A	Buyer of virtual digital asset(VDA) from the resident seller of VDA	Quarterly	30th July for April-June, 30th Oct. for July-Sept., 30th Jan. for Oct.-Dec. and the 30th May for Jan- March
133	27D	Seller (collector of TCS) to the Buyer (collector) on TCS	Quarterly	30th July for April-June, 30th Oct. for July-Sept., 30th Jan. for Oct.-Dec. and 30th May for Jan- March
132	16B	Payment on transfer of certain immovable property other than agricultural land under section 194-IA	Every Transaction	15 days from the due date of filing of Form 141 (26QB)
132	16C	Payment of rent by certain individuals or Hindu undivided family-194IB	every transaction	15 days from the due date of filing of Form 141 (26QB)
132	16D	Payables for Contractual services/professional services /Commission or Brokerage to resident individual or HUF under section 194M	every transaction	15 days from the due date of filing of Form 141 (26QB)
132	16E	Seller (collector of TCS) to the Buyer (collected) on TCS	every transaction	15 days from the due date of filing of Form 143 (27EQ)

TDS Quarterly Return Filing Due Dates for TY 2026-27

Quarter	Period	Due Date of Filing
1st Quarter	1st April to 30th June	31st July 2026
2nd Quarter	1st July to 30th September	31st October 2026
3rd Quarter	1st October to 31st December	31st Jan 2027
4th Quarter	1st January to 31st March	31st May 2027

Latest Update :

The Income-tax Act, 2025 replaces the older 1961 Act and will take effect in June 2026. It offers tools to compare old and new laws, along with updated rules and guidance to help with the transition. Check out Key Highlights of Income-tax Act, 2025

Get Complete Website with New ICAI CA India Logo

Introduction About TCS (Tax Collected at Source)

A tax collected at the source (TCS) is the tax collected by the seller from the buyer on sale, so that it can be deposited with the tax authorities. Section 394 (206C) of the Income Tax Act regulates the goods where the seller is mandated to collect tax from the buyers.

TCS rates for some commonly bought goods are:

Good purchased	TCS rates
Tendu leaves	2%
Alcohol	2%
Timber wood from a forest on lease	2%
Motor vehicles worth more than Rs.10 lakh	1%
Toll plaza, quarry, mine and parking lot	2%
Metals (including iron ore, lignite and coal)	2%
Forest produce (excluding tendu leaves and timber)	2%

For instance, Mr Mishra purchases tendu leaves worth Rs. 60,000 from Mr Desai. But Mr Mishra will pay the following amount:

Rs.{60,000 + (2% of 60,000)} = Rs. 61,200

Mr Desai will collect the extra Rs. 1200, also known as TCS credit.

TCS 1st Quarter Due Date for TY 2026-27

Important tax deadlines are due on the TCS Quarter due date, TY 2026-27.

Quarter	Period	Due Date of Filing
1st Quarter	1st April to 30th June	15th July 2026
2nd Quarter	1st July to 30th September	15th October 2026
3rd Quarter	1st October to 31st December	15th Jan 2027
4th Quarter	1st January to 31st March	15th May 2027

Note: Generate the TDS/TCS certificate within 15 days of uploading your return after you have uploaded the quarterly TDS return

Latest Update for Income Tax and TDS/TCS Return E-Filing:

The Indian government has introduced numerous amendments to the Income Tax and TDS policies, taking into account the current situation of taxpayers and businesses. Here are the latest Income Tax, TDS and TCS updates, including amendments, notifications, and announcements by the government that every taxpayer should know.

• The Government of India has introduced the Income-tax Act, 2025. The Indian Government is introducing the new Income Tax Act 2025, which will begin on April 1, 2026, replacing the old Act from 1961. This new law aims to ease tax processes and update how taxpayers and businesses manage their tax payments. Click here for the official notification

Due Date for TDS & TCS Payment Deposit for Both Govt & Non-Government Firms

• The due date for submitting the TCS deposit is the 7th of the following month.
• TDS Deposit Due Date is as follows:

For non-government entities, the 7th of the succeeding month (except March, where the due date is set to be April 30th)

For Government Entities

• If paid via Challan, the 7th of the next month
• If paid via book entry, the same day on which TDS is deducted

Updates on TDS and TCS from the Finance Ministry

• Circular No. 5 has been issued regarding the waiver of interest on delayed TDS/TCS payments due to technical issues. Read Circular

• “Government to infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25% of the existing rates”

What is the Difference Between TDS & TCS Filing Forms?

You can comprehend the difference between TDS and TCS via the following illustration:

Individuals or companies making the payment	TDS	TCS
Limits	Purchase of goods and services	Sale of goods and services
Transactions covered	Rent, commission, interest, salaries, brokerage and more	Selling of toll tickets, forest products, cars, tendu leaves, minerals, liquor, timber, scrap, etc.
Time of Deduction	When payment is due or made, whichever comes sooner	During sale or receipt of payment, whichever comes sooner
Due dates	7th of the month, though the returns have to be submitted quarterly	7th of the next month of deduction, though the returns have to be submitted quarterly
Person responsible	Buyer	Seller
Filing quarterly statements	Form 138 (24Q) (in case of salaries), Form 140 (26Q)(for others than salaries), and Form 144 (27Q) (for payments to NRIs)	Form 143 (27EQ)

TCS & TDS Return Late Filing Fees :

As per Section 427 (234E), the taxpayer must pay a late fee of INR 200 per day until the return. You also have to pay this fine every day of delay until the acceptable amount equals the actual TDS amount required to be paid.

For instance:

If the payable TDS amount from your side is INR 5000 on 1st March, but you pay the amount on 30th June, then the total calculation sums up to INR 200 X 122 days = INR 24,400. However, since this amount is higher than the actual TDS amount, i.e., INR 5000, you are only required to pay INR 5000 as the late filing fee. Apart from this, the interest will also be applicable alongside the penalty.

The interest rate details are given in the next section.

Interest on Late Payment of TDS / TCS

Section	Nature of Default	Interest Subject to TDS/TCS amount	Interest period
201 A	Non-deduction of tax at source (whole or part)	1% per month	Starts from the date on which the tax was deductible to the actual date of deduction
	After deduction of tax, non-payment/late payment of tax (whole or part)	1.5 per month	Starts from the deduction date to the actual date of payment

Note: The interest should be paid by the taxpayers before the filing of the TDS return.

For late payment of TDS after deduction under 398 [201(1A)], you have to pay interest at the rate of 1.5% per month starting from the date when it was deducted to the actual date of deposit. One must also note that the interest is calculated every month rather than on the number of days. Part of a month will also be considered a whole month.

For example

Imagine that your payable TDS amount is INR 3000, and it has been deducted on January 15th. Now, you have missed the actual date of the TDS deposit and paid this amount late on May 29th. So, the interest that you now have to pay sums up to INR 3000 X 1.5% per month X 5= INR 225.

“Month” is a vague term and has not been properly defined under the Income Tax Act of 1961. However, in many High Court Cases, the court has ordered that it should be considered as a period of thirty days, unlike the English calendar month.

The important thing to note here is that

The interest calculation for the payable TDS amount starts from the date when the TDS was deducted rather than the date on which it was due.

For instance

Suppose the due date of TDS submission or payment is set to be April 15th for the TDS deducted on March 30th. So, in such a scenario, the interest rate calculation will start from March 30th, instead of April 15th, for the late payment of TDS.

You might also consider a scenario where you miss the due date of the TDS payment by just one day. Suppose the due date of the TDS payment is May 10th for a TDS deducted on April 15th. Now imagine you somehow missed this date and made the TDS payment on the very next day, i.e., May 11th. Even in such a scenario, the interest calculation will start from April 15th, and you would be required to pay interest for two months, i.e., 1.5% per month X 2= 3%.

Therefore, you must never miss the last date of the TDS payment to avoid heavy interest and penalties.

Penalty

You might have to pay a penalty equal to the deducted/collected amount as per the rules of the Income Tax Act.

Prosecution under section 476 (Sec 276B)

As per the prosecution (Sec 276B), if any person fails to pay the credit to the Central Government, then the TDS deducted by him as per the provisions of Chapter XVII-B, he/she will be entitled to receive rigorous punishment of a minimum of three months, which can be extended up to seven years. The punishment depends upon the circumstances of the investigation made by the designated tax authority/assessment officer.

Penalty For Late Filing of TDS Return

Penalty Sec 427 (Sec 234E)

The TDS deductee will be entitled to pay a penalty of INR 200/- per day till the day the full TDS amount is paid. However, the penalty shall not exceed the actual TDS amount.

Penalty under Sec. 461 (Sec 271H)

As per this rule, the Assessing Officer may direct a person who has failed to file the TDS payment on time with a minimum of INR 10,000, which can even be extended to INR 1,00,000.

If the following conditions are met, then no penalty will be levied (under section 271H) against late payment of TDS/TCS returns:

• The tax deducted at the source is required to be furnished to the credit of the government.
• No penalty will be levied if the interest and late filing fees are paid to the credit of the government.
• Before the expiration of one year, the TDS/TCS return has been filed after the due date.

Due Date of Form No 121

The deadline for quarterly filing of 15G/15H, which is now FORM NO. 121 declaration received by the payer. Upload details of declarations in the stipulated format on the e-filing portal. 7th of the month following the quarter is the filing deadline.

S.No.	Scenarios	Original Due Date
1	For 121 Received from 1st April 2026 to 30th June 2026	15th July 2026
2	For 121 Received from 01st July 2026 to 30th September 2026	15th October 2026
3	For 121 Received from 01st October 2026 to 30th December 2026	15th January 2027
4	For 121 Received from 01st January 2027 to 31st March 2027	30th April 2027

TDS on Purchase of Immovable Property

For the purchase of immovable property on which TDS is applicable, the return, along with payment of TDS, must be made before the 30th of the next month. For instance, TDS for a property that was purchased in May must be deposited by the 30th of June.