Corporate Finance

TDS Compliance Calendar for Businesses: Rates, Sections & Due Dates

Q: By what date must TDS be deposited each month?

TDS deducted in any month must generally be deposited with the government by the 7th of the following month. The exception is TDS deducted in March, which can be deposited by 30th April. Missing the deposit deadline attracts interest at 1.5% per month (or part of a month) under Section 201(1A), calculated from the date of deduction to the date of actual deposit.

Q: What are the due dates for filing quarterly TDS returns?

Quarterly TDS returns (Form 24Q for salary TDS, Form 26Q for non-salary payments to residents, Form 27Q for payments to non-residents) are generally due by the 31st of the month following the end of the quarter, except for the Q4 (January-March) return, which is due by 31st May. Late filing attracts a fee under Section 234E of ₹200 per day of delay, capped at the TDS amount.

Q: What happens if TDS is deducted but not deposited on time?

If TDS is deducted but not deposited within the prescribed time, the deductor is liable to pay interest at 1.5% per month under Section 201(1A) for the period of delay. If TDS is not deducted at all where required, the expense itself can be disallowed under Section 40(a)(ia) — typically 30% of the expense is disallowed until the TDS is deposited (with the deduction allowed in the year of actual deposit). In serious cases of non-deduction or non-deposit, penalty under Section 271C and prosecution under Section 276B can also apply.

FININ2MIN RESEARCH Updated Jun 2026 · 8 min read

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	₹2,40,000 per annum	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

The 7th of the following month is the standard deadline for depositing TDS deducted in any month. The only exception: TDS deducted in March can be deposited by 30th April. There is no "small amount" exemption — every rupee of TDS deducted must be deposited by this date regardless of the total amount.

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.

Frequently Asked Questions

By what date must TDS be deposited each month? ▼

TDS deducted in a month must generally be deposited by the 7th of the following month, except for March, which can be deposited by 30th April. Late deposit attracts interest at 1.5% per month under Section 201(1A).

What are the due dates for filing quarterly TDS returns? ▼

Quarterly TDS returns (Forms 24Q, 26Q, 27Q) are due by the 31st of the month following the quarter-end, except Q4 (Jan-Mar) which is due by 31st May. Late filing attracts a fee of ₹200/day under Section 234E, capped at the TDS amount.

What happens if TDS is deducted but not deposited on time? ▼

Interest at 1.5% per month applies under Section 201(1A) for the delay period. If TDS is not deducted where required, 30% of the expense can be disallowed under Section 40(a)(ia) until deposited. Serious cases can attract penalty under Section 271C and prosecution under Section 276B.

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