TDS for businesses: deposit, file, certify
If you deduct TDS, deposit it by the 7th of the next month (30 April for March), file quarterly statements by 31 July, 31 October, 31 January and 31 May, and know the new form numbers from tax year 2026-27.
Tax Colony is an independent educational site, not a tax adviser or filing service. Verify with official sources or a professional before acting.
If you pay salary, rent, contractor or professional fees and the law says to deduct tax at source, you have three jobs: deduct and deposit the TDS, file a quarterly statement, and give certificates to the people you paid. You need a TAN first.
Rates and thresholds for each type of payment are on the department’s TDS rates page.
1. Deposit the TDS
| Deducted in | Deposit by |
|---|---|
| April to February | 7th of the next month |
| March | 30 April |
| Government deductors paying by challan | Within 7 days from the end of the month |
From tax year 2026-27 you pay through the e-filing portal (e-Pay Tax, logged in with your TAN) using challan ITNS 281N, which replaces ITNS 281. Needs review
2. File the quarterly statement
The due dates are the same under the old and new rules:
| Quarter | Due |
|---|---|
| April to June | 31 July |
| July to September | 31 October |
| October to December | 31 January |
| January to March | 31 May |
Form numbers change from tax year 2026-27 (rule 219 of the Income-tax Rules, 2026):
| What | Up to 2025-26 | From 2026-27 |
|---|---|---|
| TDS on salary | 24Q | Form 138 |
| TDS on other payments to residents | 26Q | Form 140 |
| TDS on payments to non-residents | 27Q | Form 144 |
| TCS | 27EQ | Form 143 |
| Property, rent and similar challan-cum-statements | 26QB / 26QC / 26QD / 26QE | Form 141 |
3. Issue certificates
Give each payee a TDS certificate: Form 16 for salary and Form 16A for other payments under the old rules. New form numbers and issue dates apply under the 2026 Rules. Needs review
Late filing and late payment
- Late statement: a fee of ₹200 per day until you file, capped at the TDS amount (s.427 of the Income-tax Act, 2025; s.234E of the 1961 Act).
- Late deduction or deposit: simple interest of 1% a month from when tax should have been deducted until it is deducted, and 1.5% a month from deduction until it is paid to the government (s.398(3) of the Income-tax Act, 2025).
- If the deductor’s statement has mistakes, the payee’s tax credit won’t match their AIS, which often leads to notices. File a correction statement promptly.
Related
Sources
- Income-tax Act, 2025 (Act No. 30 of 2025), Gazette of India
- Income Tax Department: Rule 219, Income-tax Rules 2026 (quarterly statements)
- Income Tax Department: Rule 218, Income-tax Rules 2026 (deposit due dates)
- Income Tax Department: Rule 31A, Income-tax Rules 1962
- Income Tax Department: Section 234E
- Income Tax Department: TDS rates
- Income Tax Department: Tax Deduction Account Number
Last verified: 5 Nov 2026