TDS Compliance Calendar for Businesses: Rates, Sections & Due Dates
Reviewed by CA Nikhil Gupta · Last reviewed 16 June 2026
TDS compliance fails for the same reason most compliance fails: not because the rules are unknown, but because the calendar has too many moving parts — different rates for different payments, a deposit deadline every month, and a return deadline every quarter. Here's the full picture in one place.
Key TDS Sections & Rates Businesses Deal With Most
| Section | Nature of Payment | Threshold | TDS Rate |
|---|---|---|---|
| 192 | Salary | As per slab/employee's tax liability | Average rate based on estimated annual income |
| 194A | Interest (other than on securities) | ₹50,000 (₹1,00,000 for senior citizens, banks) | 10% |
| 194C | Payments to contractors | ₹30,000 single / ₹1,00,000 aggregate | 1% (individual/HUF) or 2% (others) |
| 194H | Commission or brokerage | ₹20,000 | 2% |
| 194I | Rent | ₹50,000 for a month or part of a month from 1 April 2025; TY 2026–27: section 393(1), Table 2(ii) | 2% (plant/machinery) or 10% (land/building) |
| 194J | Professional/technical fees | ₹30,000 | 10% (professional) / 2% (technical/call centre) |
| 194Q | Purchase of goods (buyer's TDS) | ₹50,00,000 aggregate purchases from a seller | 0.1% of value exceeding ₹50 lakh |
| 194-IA | Transfer of immovable property (other than agricultural land) | ₹50,00,000 | 1% |
Rates and thresholds are revised periodically through Finance Acts — always confirm the rate applicable for the financial year in question before processing payments.
Monthly TDS Deposit Deadline
Quarterly TDS Return Due Dates
| Quarter | Period | Due Date for Filing Return |
|---|---|---|
| Q1 | April - June | 31st July |
| Q2 | July - September | 31st October |
| Q3 | October - December | 31st January |
| Q4 | January - March | 31st May |
The applicable form depends on the type of payment: Form 24Q for salary TDS, Form 26Q for non-salary payments to residents, and Form 27Q for payments to non-residents. After filing, Form 16 (for employees) and Form 16A (for other deductees) must be issued — typically within 15 days of the return due date.
Consequences of Missing TDS Deadlines
| Failure | Consequence |
|---|---|
| Deposit delayed beyond the 7th | Interest @ 1.5% per month (or part) under Section 201(1A), from date of deduction to date of deposit |
| Return filed late | Fee @ ₹200/day under Section 234E, capped at the TDS amount |
| TDS not deducted where required | 30% of the expense disallowed under Section 40(a)(ia) until TDS is deposited |
| TDS deducted but not deposited at all | Penalty under Section 271C (up to the amount of tax not deducted/deposited) and prosecution risk under Section 276B in serious cases |
Building TDS Into the Monthly Close
The TDS deposit deadline (7th of the month) typically falls before most businesses have even finished closing the prior month's books — which is why TDS computation needs to happen as payments are processed, not retrospectively during the close. Pair this with your GST ITC reconciliation cycle so both statutory obligations are tracked on the same calendar, and feed both into the cash outflow lines of your 13-week cash flow forecast — TDS and GST payments are predictable, recurring cash outflows that should never be a surprise.
2026 current-law quick reference
What changes the answer?
| What to check | What to do | Common mistake to avoid |
|---|---|---|
| Core classification | For FY 2025–26, legacy quarterly TDS/TCS forms continue. For deductions/collections under the Income-tax Act, 2025 from 1 April 2026, use the Rules 2026 forms/section codes—including the current successor forms—rather than blindly continuing 24Q/26Q/27Q/27EQ. | Do not decide from the label used on an invoice, agreement or bank narration alone. |
| Edge case | Deposit due dates and statement due dates are different controls; month/quarter-end reconciliation should track both. | Recompute when the fact pattern crosses this boundary. |
| Evidence | Reconcile the documents below to the tax/regulatory return before filing. | A correct legal rule with an unreconciled evidence trail can still fail in assessment or audit. |
| Effective date | Apply the law/form/rate for the actual transaction, tax year or proceeding date. | Do not mix FY 2025–26/AY 2026–27 legacy references with post-1-April-2026 forms. |
Worked practical example
A business deducts resident non-salary TDS in April 2026. Use the current 2025 Act section/form framework for that deduction, not a FY 2025–26 Form 26Q template.
Evidence checklist
- deduction register
- challans
- PAN/TAN master
- quarterly statement acknowledgements
- certificates/interest-late-fee log
Primary-source checks: Income Tax Department — TDS rates/guidance · Income-tax Act 2025 transition/forms
How to use this: This current-law summary reflects the latest position. Where it conflicts with an older rate, threshold, form or section reference elsewhere on the page, rely on the current, dated primary source above.
Frequently Asked Questions
Source and review trail
Use the current official instrument, portal or regulator publication before acting.
- Primary category
- Income Tax
- Official starting point
- www.incometax.gov.in
Primary sources & related provisions
Statutory provisions referenced in this guide:
Short tenancy: why the monthly threshold matters
Constructed example for Tax Year 2026–27: a company pays a resident landlord ₹1,00,000 for one month of building rent. Section 393(1), Table 2(ii), uses ₹50,000 for a month or part of a month. The threshold is crossed even though annual rent is below ₹6 lakh. TDS = 10% × ₹1,00,000 = ₹10,000; net rent paid = ₹90,000. At exactly ₹50,000 for that month the threshold is not exceeded. For a payer other than a specified person, Table 2(i) instead applies the 2% route and its last-month deduction timing. Non-resident landlords require their separate withholding rules.
Income-tax Act 2025, section 393(1), Table 2(i)/(ii), Gazette pages 398–399