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TDS Filing in AY 2026-27: Due Dates and Process

ITAI Blogger
ITAI Blogger

If you deduct tax at source during FY 2025-26, you must report those deductions through quarterly TDS statements and issue the applicable TDS certificates. This guide explains what is TDS filing in AY 2026-27, the TDS filing due dates AY 2026-27, the correct forms, online filing procedure, correction process, late fees and Form 16 or Form 16A requirements for Indian deductors.

The financial year is FY 2025-26, which corresponds to AY 2026-27. TDS compliance for payments made between 1 April 2025 and 31 March 2026 generally relates to this assessment year.

What is TDS filing in AY 2026-27?

TDS filing is the process through which a deductor reports tax deducted from payments such as salary, interest, rent, commission, professional fees, contractor payments or payments to non-residents.

A deductor must:

  1. Deduct TDS at the applicable rate.
  2. Deposit the deducted amount with the Central Government.
  3. File a quarterly TDS statement.
  4. Correct errors, if any, through a revised statement.
  5. Issue Form 16 or Form 16A to the deductee.
  6. Ensure that the TDS appears correctly in the deductee’s Form 26AS and Annual Information Statement.

The deductor may be an employer, company, partnership firm, individual, trust, government office, bank or another person responsible for making a payment covered by the Income-tax Act, 1961.

The Income Tax Department provides rules, forms and compliance services through its official e-filing portal and TDS services through TRACES.

TDS filing in AY 2026-27: Important due dates

For TDS return filing for FY 2025-26, the statement must be filed after each quarter. The usual due dates are as follows:

Quarter Period covered TDS statement due date
Q1 1 April 2025 to 30 June 2025 31 July 2025
Q2 1 July 2025 to 30 September 2025 31 October 2025
Q3 1 October 2025 to 31 December 2025 31 January 2026
Q4 1 January 2026 to 31 March 2026 31 May 2026

Therefore, the most important TDS filing due date for AY 2026-27 for deductions made in Q4 of FY 2025-26 is 31 May 2026.

The government may extend a due date through a notification. Before filing, deductors should check the latest notification on the Income Tax Department website or the official e-filing portal.

TDS payment due dates

TDS deducted by most non-government deductors must generally be deposited by the 7th day of the following month. For example, TDS deducted in April 2025 is generally payable by 7 May 2025.

For TDS deducted in March, the payment deadline for most non-government deductors is generally 30 April. Government deductors follow separate payment rules, depending on the method of payment.

A delay in depositing TDS can result in interest under Section 201 of the Income-tax Act.

TDS return forms 24Q, 26Q and 27Q for FY 2025-26

The correct form depends on the type of payment and the residential status of the deductee.

Form 24Q for salary TDS

Form 24Q is used to report TDS deducted from salary under Section 192.

Employers must provide details such as:

  • Employee PAN
  • Salary paid
  • Exempt allowances and deductions
  • TDS deducted and deposited
  • Tax regime selected by the employee, where relevant
  • Details reported in Form 16

Form 24Q includes additional salary details in the fourth quarter because the employer reports the employee’s annual salary and tax computation.

Form 26Q for resident payments

Form 26Q is used for TDS deducted from payments to resident deductees, other than salary. Common examples include:

  • Interest other than interest on securities
  • Contractor and subcontractor payments
  • Commission and brokerage
  • Rent
  • Professional or technical fees
  • Payments covered by specific TDS provisions

The statement must contain the deductee’s PAN, amount paid or credited, TDS rate, TDS amount and challan details.

Form 27Q for non-resident payments

Form 27Q applies when TDS is deducted from payments made to non-residents, including foreign companies, where the payment is taxable in India.

Examples may include:

  • Interest paid to a non-resident
  • Royalty
  • Fees for technical services
  • Other taxable payments to non-resident persons

The deductor should carefully verify the applicable rate, surcharge, health and education cess, tax treaty provisions and documentation before deducting TDS from a non-resident payment.

Other relevant forms

Form 27EQ is used for quarterly TCS statements. It is not a TDS statement, but businesses that collect tax at source may need to file it separately.

How to file TDS return online in India

You can file a TDS statement online after preparing the statement in the prescribed format and validating it through the File Validation Utility.

Step 1: Obtain a TAN

A person responsible for deducting TDS generally needs a Tax Deduction and Collection Account Number, or TAN. TAN is different from PAN.

You can apply for TAN through Form 49B on the Income Tax Department’s TAN application service.

Step 2: Deduct and deposit TDS

Calculate TDS at the applicable rate and deduct it at the correct time. Deposit the amount using the applicable challan, generally Challan ITNS 281 for non-government deductors.

Check that:

  • The TAN is correct.
  • The assessment year is correct.
  • The major and minor head are correct.
  • The amount deposited matches the books.
  • The challan serial number, BSR code and date are recorded.

Step 3: Prepare the quarterly statement

Use approved TDS return preparation software or a recognised return preparation utility. Enter the following information:

  • Deductor details
  • TAN and PAN
  • Deductee PAN
  • Payment or credit date
  • Nature of payment
  • Amount paid or credited
  • TDS amount
  • Challan details
  • Date of TDS deduction and deposit
  • Section code and applicable rate

A wrong PAN or challan detail can cause a short deduction or reporting mismatch.

Step 4: Validate the file through FVU

The prepared statement must be converted into the prescribed file format and validated using the File Validation Utility, commonly called FVU.

If the file contains errors, the utility generates an error or response file. Correct the errors and validate the file again.

Step 5: Submit the statement

You can submit the validated TDS statement through:

  • A TIN-FC or authorised TDS filing centre
  • Online upload through the income tax e-filing system, where applicable
  • An eligible deductor’s authorised electronic filing facility

Large deductors and specified categories generally need to file electronically. The latest requirements should be checked on the NSDL e-Governance TDS filing information page.

Step 6: Save the provisional receipt

After successful submission, save the acknowledgement or provisional receipt number. It helps you:

  • Track the statement status
  • Respond to a communication
  • File a correction statement
  • Match the return with challan details
  • Prove timely filing

TDS statement filing procedure on TRACES

TRACES is the online platform used by deductors, deductees and tax authorities for TDS-related services. A deductor can use TRACES to download certificates, view defaults, request correction statements and check statement processing.

A typical TDS statement filing procedure on TRACES involves the following:

  1. Register or log in using the deductor TAN.
  2. Select the relevant financial year and quarter.
  3. Review filed statement details.
  4. Check challan status and any defaults.
  5. Download the consolidated file, justification report or Form 16 and Form 16A.
  6. Submit a correction statement if the original statement contains an error.

The original quarterly statement is usually prepared and submitted using the prescribed return format. TRACES is particularly important after filing because it displays processing results, defaults and certificate availability.

TDS return late filing fee and penalty for AY 2026-27

Late or inaccurate TDS compliance can create more than one type of liability.

Late filing fee under Section 234E

A fee of ₹200 per day may apply for delay in filing a TDS statement under Section 234E. The fee cannot exceed the total amount of TDS deductible or collectible for that statement.

For example, if a deductor files a statement 20 days late and the TDS reported in the statement is ₹35,000:

  • Late fee: 20 days × ₹200 = ₹4,000
  • Maximum possible fee: ₹35,000
  • Fee payable before other liabilities: ₹4,000

Penalty under Section 271H

A penalty may apply for:

  • Filing an incorrect TDS statement
  • Filing the statement late
  • Failing to file the statement

The penalty under Section 271H can range from ₹10,000 to ₹1,00,000, subject to the conditions prescribed under the Income-tax Act.

Interest for late deduction or late deposit

Interest may apply under Section 201:

  • 1% per month or part of a month for failure to deduct TDS
  • 1.5% per month or part of a month for failure to deposit deducted TDS

The period is calculated according to the statutory rules. Interest, late filing fee and penalty are separate consequences. Paying one does not automatically remove the others.

The Income Tax Department explains interest and default-related provisions through its tax deduction at source guidance.

Revised TDS return filing for FY 2025-26

A deductor can file a correction statement when the original TDS statement contains an error. Common reasons include:

  • Incorrect deductee PAN
  • Wrong challan details
  • Incorrect amount paid
  • Incorrect TDS amount
  • Wrong section code
  • Duplicate records
  • Missing deductee records
  • Incorrect date of deduction
  • Invalid or unmatched challan

How to file a revised TDS statement

  1. Download the consolidated statement or correction-related file from TRACES.
  2. Import the file into approved TDS return preparation software.
  3. Correct the relevant record.
  4. Validate the revised statement through FVU.
  5. Submit the correction statement through the authorised channel.
  6. Track the correction status on TRACES.
  7. Download the updated justification report and certificates after processing.

Do not file a correction statement merely to change information that is already correct. Unnecessary corrections can create new mismatches or duplicate entries.

PAN correction

If the deductee’s PAN is incorrect, verify the PAN through the Income Tax Department’s PAN services before filing the correction. A valid PAN is important because the system may apply a higher TDS rate where PAN details are unavailable or invalid under applicable provisions.

TDS certificate Form 16 and Form 16A for AY 2026-27

Form 16

Form 16 is the annual TDS certificate issued by an employer to an employee for salary TDS. It contains salary income, exemptions, deductions, tax liability and TDS details.

For FY 2025-26, employers should download Form 16 through TRACES and issue it to employees within the prescribed deadline, generally 31 May 2026, unless the government announces a different date.

Employees use Form 16 to:

  • Prepare the income tax return
  • Verify salary and TDS details
  • Claim credit for tax deducted
  • Check whether the employer reported the correct PAN

Form 16A

Form 16A is issued for TDS on non-salary payments. It is generally issued quarterly within the prescribed period after the TDS statement is due and processed.

For example, a bank may issue Form 16A for interest TDS. A company may issue it to a professional, contractor, landlord or other resident deductee.

The certificate should show:

  • Deductor and deductee details
  • TAN and PAN
  • Payment amount
  • TDS amount
  • Challan details
  • Certificate number
  • Relevant quarter and financial year

A deductee should match Form 16 or Form 16A with Form 26AS and the Annual Information Statement before filing the income tax return.

TDS return correction and status check online

You can perform a TDS return correction and status check online through TRACES and the Income Tax Department’s services.

To check statement status

Keep the following information available:

  • TAN
  • Financial year
  • Quarter
  • Form type
  • Provisional receipt number or token number

The status may show whether the statement is:

  • Filed
  • Accepted
  • Processed
  • Under processing
  • Rejected
  • Processed with defaults

To check outstanding defaults

A deductor should regularly download the justification report from TRACES. It can identify:

  • Short deduction
  • Short payment
  • Late payment
  • Interest liability
  • PAN errors
  • Challan mismatch
  • Late filing fee
  • Unmatched challan

Resolve defaults promptly because they can affect the deductee’s TDS credit and the deductor’s compliance record.

Practical example of TDS compliance for FY 2025-26

Suppose a company pays ₹1,00,000 as professional fees to a resident consultant in June 2025 and deducts ₹10,000 as TDS, assuming a 10% rate applies.

The company should:

  1. Record the consultant’s valid PAN.
  2. Deduct ₹10,000 at the time required under the law.
  3. Deposit the TDS by the applicable July 2025 deadline.
  4. Report the payment in Form 26Q for Q1.
  5. File the Q1 statement by 31 July 2025.
  6. Issue Form 16A after the statement is processed.
  7. Match the payment and TDS with the consultant’s Form 26AS and AIS.

The rate and threshold must always be checked against the relevant section and current law. The Budget 2025 changes also modified certain TDS thresholds from FY 2025-26, so deductors should verify the applicable provision before making payments.

Common mistakes to avoid in TDS filing

Avoid these frequent errors during TDS filing in AY 2026-27:

  • Using PAN instead of TAN in the deductor field
  • Selecting the wrong financial year or quarter
  • Reporting a resident payment in Form 27Q
  • Reporting a non-resident payment in Form 26Q
  • Entering an incorrect challan number
  • Omitting the date of deduction
  • Reporting an invalid deductee PAN
  • Paying TDS under the wrong assessment year
  • Filing the statement without reconciling the books
  • Ignoring a TRACES default
  • Issuing Form 16A before the statement is processed
  • Not checking whether TDS credit appears in Form 26AS

A monthly reconciliation of payments, deductions, challans and ledger balances can prevent most quarterly filing problems.

TDS filing checklist for AY 2026-27

Before submitting a TDS statement, confirm the following:

  • TAN is active and correctly quoted.
  • Deductee PANs are verified.
  • The correct form, 24Q, 26Q or 27Q, is selected.
  • Payment amounts match the books.
  • TDS deductions match the payroll or payment records.
  • Challans are correctly mapped.
  • Interest and late fee, if applicable, are calculated.
  • The FVU file passes validation.
  • The statement is filed before the applicable due date.
  • The provisional receipt is saved.
  • TRACES status is checked after processing.
  • Form 16 or Form 16A is downloaded and issued on time.

Summary

TDS filing in AY 2026-27 covers TDS deductions made during FY 2025-26. File salary deductions in Form 24Q, resident non-salary deductions in Form 26Q and non-resident deductions in Form 27Q. For TDS return filing for FY 2025-26, the quarterly deadlines are generally 31 July, 31 October, 31 January and 31 May. Complete the TDS filing due dates AY 2026-27 checklist, use TRACES to track processing and corrections, and issue Form 16 or Form 16A after successful processing. Timely TDS filing in AY 2026-27 helps avoid the ₹200-per-day late fee, interest and possible penalty.

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