Due Date for TDS Return for FY 2024-25 (AY 2025-26)

TDS, short for Tax Deducted at Source, is a type of tax that is levied on payments to individuals or companies if the paid amount crosses certain threshold limits. For example, if a company is paying a salary to an individual, and if this paid amount is eligible for TDS, then at the time of payment the company has to deduct the applicable tax from the original amount and deposit the same with the Income Tax Department. In this way, the recipient gets their salary with tax already deducted at source.

It is the responsibility of the organization deducting the TDS, known as the deductor, to duly pay the applicable TDS to the government before the due date. Generally, the due date for TDS payment is always the 7th day of the next month, with a few exceptions. For example, an organization that wants to pay TDS for July must make the TDS payment by the 7th of August. One notable exception is the month of March, TDS payments for which can be made upto the 30th of April. For government assessees paying TDS without challan, the TDS payment has to be done on the same day that the original transaction was completed.

Once the deductor has deposited the TDS, they must also file the TDS return. The TDS return is a detailed account of TDS paid to the government, along with the challan information, at the end of each quarter.

The due dates of mandatory TDS filing are as follows:

• 1st Quarter - 1st April to 30th June - 31st July
• 2nd Quarter - 1st July to 30th September - 31st October
• 3rd Quarter - 1st October to 31st December - 31st January
• 4th Quarter - 1st January to 31st March - 31st May

Late Fees Under Section 234E

If you delay the payment of TDS beyond the TDS due date then under Section 234E (Section 427 under the Income Tax Act of 2025), you will have to pay charges of ₹200 per day until the charge fee is equal to the return filing amount that is TDS.

This fee is a mandatory, non-discretionary levy. It is automatically triggered the moment a delay occurs and is not subject to the discretion of any authority. Therefore, the outstanding fee has to be paid in full before filing the belated return, as the e-filing portal does not allow submission of the return without advance payment of the outstanding fee. Section 427 applies to TDS returns filed in specified forms.

Penalty (Sec 271H)

The penalty under Section 271H is separate and is in addition to the late filing fee under Section 234E of the Income Tax Act. Additionally, Section 271H also addresses penalties related to incorrect filing of TDS returns. If the following conditions are fulfilled, no penalty will be levied under section 271H in case of delayed filing of the TDS/TCS return:

• The TDS/TCS return is submitted within one year from the specified due date.
• The tax deducted/collected at source is paid to the credit of the Government
• Any applicable late filing fees and interest have been paid to the Government.

The interest payable on the late deposit of TDS is as follows -

Note : The interest on the late deposit of TDS should be paid before filing the TDS return. According to Section 201(1A), if TDS is deposited late after deduction, interest must be paid. It is calculated at a rate of 1.5% per month from the date the TDS was deducted until the actual date of deposit. The interest on such a late deposit is calculated starting from the date TDS was deducted, not from the due date for TDS payment. The interest is to be calculated every month and not on the number of days, i.e., any part of a month is treated as a full month. The term "month" is not defined in the Income Tax Act 1961. However, various High Court rulings suggest that it should be considered as a period of 30 days rather than an English calendar month. Let's consider an example where the TDS was deducted on 21st February 2024 and the due date is 7th March 2024. If the TDS is actually deposited on 8th March 2024 (one day after the due date), the interest on the late deposit will be calculated from 21st February 2024, and not from 7th March 2024 through 8th March 2024. This results in interest charges for a period of 2 months due to a delay of just one day. Therefore, you would owe interest at 1.5% per month for 2 months, totalling 3% on the TDS amount.

Also Read: Belated Return: Section 139(4), Penalty, How to File Income Tax Return After Due Date?

Besides the late fee, penalty and interest, there are other consequences of late TDS payment. As per Section 398 of the Income-tax Act, 2025 (old Section 201/201(1A)), the consequences are given below:

Treated as "Assessee in Default":

• The deductor shall be deemed to be an assessee in default under section 398.
• The TDS amount is fully recoverable as tax arrears.
• The deductor can be subjected to recovery proceedings.

Disallowance of Expenditure:

• As per section 37 (old section 40(a)(ia) of the new Act, if TDS is not deducted or not deposited, 30% of the expense is disallowed in the hands of the deductor.

Under Section 448 of the Income-tax Act, 2025 (corresponding to Section 271C of the old Act), a penalty equal to the amount of TDS not deducted — effectively 100% of the TDS amount — is levied on any person who either fails to deduct TDS wholly or partly, or fails to pay TDS, other than advance tax, as required under Chapter XIX-B. This penalty is imposed by the Joint Commissioner of Income Tax.An equivalent provision exists under Section 449 of the Income-tax Act, 2025 (corresponding to Section 271CA of the old Act) in relation to Tax Collected at Source, where the penalty is equal to the amount of TCS not collected.

Note: Penalty under Section 448 is separate from and in addition to interest under Section 398. Both can be levied simultaneously.

If an individual fails to remit TDS to the Central Government as mandated under Chapter XVII-B of the Income Tax Act, 1961, they may face rigorous imprisonment. The minimum prison term is three months, which can extend up to seven years, along with a monetary fine.

TDS is paid online through the TRACES / Income Tax e-filing portal using Challan ITNS 281, as prescribed under Section 397 read with the Income Tax Rules, 2026.

• Go to the Income Tax e-filing portal: www.incometax.gov.in
• Log in with TAN (Tax Deduction Account Number) and password.
• Navigate to e-Pay Tax → Select TDS/TCS Payment.
• Select Challan ITNS 281.
• Fill in details:
• TAN of deductor
• Nature of payment (e.g., salary, contractor, professional fees, mapped to Section 392/393 Table entries)
• Assessment Year / Tax Year
• Amount of TDS + Interest (if any)
• Select the mode of payment. Net banking or debit card of authorized banks.

• Upon successful payment, a challan counterfoil (BSR code, challan serial number, and date) is generated. This counterfoil must be used while filing TDS returns.

Note:

• TDS paid by government deductors without a challan (book entry) is through Form 24G.
• TAN is mandatory for all deductors under section 397 (old section 203A) except a resident individual purchasing immovable property from a non-resident, which is now exempt from the TAN requirement (change in the Finance Act, 2026, as highlighted in the preface).
• The quarterly TDS return has to be filed with the challan BSR Code and Serial Number.

Thus, all companies and organizations are required by law to deduct TDS from their payments, pay those taxes to the government before the due date, and duly file their TDS returns before the due date. Non-payment or delay in filing of TDS attracts a penalty of Rs. 200 per day until the amount is paid. So if you or your organization is eligible for TDS E payment and filing, make sure you do so on time and without fail.

Also Read: Penalty for Filing Income Tax Return Late