Tax Deducted at Source (TDS) is an essential part of the Indian tax system, ensuring that tax is deducted by the payer before making payments to the payee. TDS payments must be deposited with the Income Tax Department by the specified due dates. Late filing or non-payment of TDS can lead to penalties and interest charges, making it crucial for businesses and individuals to adhere to the timelines. In this guide, we will discuss the TDS payment due dates, the process for making payments, penalties for late filing, and interest on late payments for the Financial Year 2025-26.

What is TDS Payment?

TDS payment refers to the amount of tax deducted by the payer (such as an employer, bank, or company) at the time of making a payment to the payee (such as an employee, contractor, or service provider). The deducted tax is then remitted to the Income Tax Department on behalf of the payee. TDS applies to various types of payments, including salary, interest, rent, and professional fees. TDS payment helps the government ensure regular tax collection and reduces the chances of tax evasion.

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TDS Payment Due Dates for FY 2025-2026

If you are a deductor, you must deposit the tax you deduct with the government by a fixed date every month. If you are a normal deductor (not a government office), the general rule is:

Month of Tax Deduction (FY 2025-2026)

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

The due date for TDS payment is usually the 7th day of the next month, except for the month of March, when it is extended to 30th April.

How to Make TDS Payment Online

Step

Action

Details

Go to Portal

Visit the official Income Tax e-Filing website: www.incometax.gov.in.

Select e-Pay

Click on the 'e-Pay Tax' link under the 'Quick Links' section.

This can be done without logging in.

Verify TAN

Enter your 10-digit TAN and mobile number. Enter the received OTP to verify.

TAN is mandatory for TDS.

Choose Tax Type

Click 'Proceed' on the 'Income Tax' tile. Select Assessment Year 2026-2027 (for FY 2025-26).

Choose (200) TDS/TCS Payable by Taxpayer as the Type of Payment.

Add Amount

Enter the breakup of the tax amount (Tax, Interest, Fee under 234E, etc.). Click 'Continue'.

Select Bank

Choose your preferred payment method (Net Banking, Debit Card, etc.) and your bank.

Pay and Save

Review the Challan summary, click 'Pay Now', and complete the transaction on your bank's website. Download and save the generated Challan 281 (the payment receipt).

This receipt is proof of your payment.

TDS Return Due Dates

After depositing the TDS amount with the government every month, you must file a TDS Return. This return is a quarterly statement that tells the government:

Quarter Period (FY 2025-2026)

Quarter Ending

Due Date for Filing TDS Return

1st Quarter

1st April 2025 - 30th June 2025

31st July 2025

2nd Quarter

1st July 2025 - 30th September 2025

31st October 2025

3rd Quarter

1st October 2025 - 31st December 2025

31st January 2026

4th Quarter

1st January 2026 - 31st March 2026

31st May 2026

Note: For the last quarter (January to March), the deadline is extended to May 31st to give more time for final year-end calculations.

Forms for Filing TDS Returns

Form

Purpose

Applicable To

Form 24Q

TDS on Salaries

For Employers

Form 26Q

TDS on Other than Salaries

For Other Businesses/Individuals

Form 27Q

TDS on Income of Non-Residents

For Non-Resident Payments

Form 27EQ

TCS on Income from Goods

For Collecting Tax at Source

Also read: Types of ITR forms and eligibility

Penalties for Late Filing of TDS/TCS Statements for FY 2025-26

Type of Penalty

Description

Important Condition

Late Filing Fee (Section 234E)

₹200 for every single day of delay.

The total fee cannot be more than the actual TDS amount for that quarter. You must pay this fee before you can file the late TDS Return.

General Penalty (Section 271H)

A penalty ranging from ₹10,000 to ₹1,00,000 can be charged by the Tax Officer.

This penalty is usually for very serious delays (e.g., delaying the return for more than one year) or giving incorrect details (like wrong PAN or challan info). This penalty can sometimes be avoided if you file the return within one year and pay the tax, interest, and late fees on time.

Example of Section 234E:

TDS Return Due Date: 31st July 2025
Actual Filing Date: 10th September 2025
Days of Delay: 41 days (August 31 days + September 10 days)
Late Fee: 41 days × ₹200 per day = ₹8,200

If the actual TDS amount for the quarter was, say, ₹5,000, then the maximum fee you would pay is capped at ₹5,000.

Interest on Late Payment of TDS

You must also pay Interest if you do not deposit the deducted TDS money with the government by the monthly due date. Interest is mandatory and must be paid before filing the TDS return.

Situation of Default

Interest Rate per Month

Period for which Interest is Charged

TDS was NOT deducted at all (or was deducted less than required).

1% per month

From the day the tax should have been deducted up to the day it is actually deducted.

TDS was deducted but was NOT deposited with the government on time.

1.5% per month

From the day the tax is actually deducted up to the day it is actually deposited with the government.

Example:

Date of deduction: 25th May 2025
TDS Payment Due Date: 7th June 2025
Actual Deposit Date: 15th July 2025
Delay Months: 2 months (Part of June is counted as the 1st month, and part of July is counted as the 2nd month)
Interest Rate: 1.5% per month

If TDS was ₹10,000, Interest = ₹10,000 × 1.5% × 2 months = ₹300

Conclusion

Ensuring timely TDS payment and filing of returns is crucial for both individuals and businesses. The due dates for TDS payment and filing TDS returns for FY 2025-26 are important to avoid penalties and interest charges. By following the step-by-step process for TDS payment and adhering to the deadlines, you can ensure compliance with tax laws and avoid unnecessary fines. Be sure to keep track of your TDS obligations and file your returns on time.

Frequently Asked Questions (FAQs)

What is TDS?

TDS is the tax deducted at source on various types of payments made to individuals or businesses.

Who is required to pay TDS?

Any individual or business who makes payments subject to TDS is required to deduct and remit the tax to the government.

What is the due date for TDS payment?

The due date for monthly TDS payment is the 7th day of the next month.

Can I make TDS payments online?

Yes, you can make TDS payments online through the NSDL TDS portal.

What happens if TDS is not paid on time?

If TDS is not paid on time, penalties and interest will be charged by the Income Tax Department.

What is the penalty for late filing of TDS returns?

A penalty of ₹200 per day is charged for late filing of TDS returns.

What is the interest on late TDS payments?

The interest rate is 1.5% per month or part of the month for delayed payments.

Do I need to file TDS returns every quarter?

Yes, TDS returns need to be filed every quarter.

What forms are used for filing TDS returns?

Forms like Form 24Q, 26Q, 27Q are used for different types of TDS returns.

How can I check the status of my TDS payment?

You can check your TDS status on the TRACES portal using your TAN number.

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