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TDS & Tax · TDS lesson 5 of 7
Deposit, returns and certificates
Deducting tax is only the first step. The deductor must also deposit it on time, file returns and give certificates.
1. Deposit: pay the tax to the government
- Tax deducted in a month is generally due by the 7th of the next month.
- For tax deducted in March, the deadline is 30 April.
- Some special cases have their own dates — for example, TDS on buying property and on certain rent is paid within 30 days from the end of the month in which it was deducted, using a short form.
Heads-up: a few older web pages show different dates for March. If sources disagree, check the Income Tax Department portal. Dates in this lesson were checked in October 2026.
2. Returns: report what you deducted
The deductor files a quarterly statement showing each deduction, the receiver's PAN, the amount and the tax deposited.
| Quarter | Months | Due date for the return |
|---|---|---|
| Q1 | April–June | 31 July |
| Q2 | July–September | 31 October |
| Q3 | October–December | 31 January |
| Q4 | January–March | 31 May |
Which form is used?
The Income-tax Act 2025 renumbered the forms from April 2026. The older numbers are still widely used in conversation, so learn both.
| Used for | Older form | New form (from April 2026) |
|---|---|---|
| Quarterly return — salary | 24Q | 138 |
| Quarterly return — non-salary payments to residents | 26Q | 140 |
| Quarterly return — payments to non-residents | 27Q | 144 |
| Quarterly return — tax collected at source (TCS) | 27EQ | 143 |
Returns for periods up to 31 March 2026 still use the older forms. Property purchase and some rent payments are reported through short challan-cum-statement forms.
3. Certificates: give the receiver proof
- Salary: a yearly certificate (Form 16 under the older law; Form 130 under the new one), due by 15 June after the year ends.
- Other payments: a certificate (Form 16A under the older law; reported as Form 131 under the new one) due about 15 days after the quarterly return date.
What happens if you are late?
| Mistake | Consequence |
|---|---|
| Did not deduct tax (or deducted less) | Interest of 1% for every month or part of a month |
| Deducted but deposited late | Interest of 1.5% for every month or part of a month |
| Filed the return late | Late fee of ₹200 for each day, up to the amount of TDS in that return |
| Did not deduct at all | A part of the related expense may be disallowed when the business works out its taxable profit |
There can be extra penalties too. Paying on time is much cheaper than fixing mistakes later.
A small due-date exercise
- A firm deducted TDS of ₹4,000 on 12 August. By what date must it be deposited?
- TDS was deducted on 20 March. What is the deposit deadline?
- The Q2 return (July–September) was filed on 12 November. By how many days was it late? What is the maximum late fee if the TDS in that return was ₹5,000?
Show answers
1) By 7 September. 2) By 30 April. 3) 12 days late (31 October to 12 November); 12 × ₹200 = ₹2,400, which is below ₹5,000, so the late fee is ₹2,400.
Check yourself
1. TDS deducted in September is normally due for deposit by…
The usual deadline is the 7th of the following month.
2. When is the Q3 (October–December) return due?
Q3 returns are due on 31 January.
3. The late fee for filing a TDS return late is…
It is ₹200 per day of delay, but not more than the TDS in that return.
4. Interest for deducting tax but depositing it late is…
Late deposit: 1.5% per month or part of a month. Late deduction: 1%.
Learning material for beginners, checked in October 2026. It is not tax or legal advice. Tax rules, rates and due dates change, and different websites sometimes show different details. Always confirm on the Income Tax Department portal (incometax.gov.in) or with a Chartered Accountant before applying anything in real work. All names and amounts in the examples are made up.