TDS Due Dates, Interest, and Penalties for FY 2025-26: A Complete Compliance Calendar

TDS payment is generally due by the 7th of the month following deduction, with the exception of March deductions, which can be paid up to 30 April. TDS return filing follows a quarterly cycle, due by the last day of the month following quarter-end — except for Q4 (January to March), where the deadline extends to 31 May. Missing either date triggers a distinct, separately calculated penalty, and practitioners frequently underestimate how quickly these compound.

Interest under Section 201(1A) applies in two separate scenarios with two separate rates. Late deduction — failing to deduct TDS when it was due — attracts interest at 1% per month, calculated from the date tax was deductible to the date it was actually deducted. Late payment — deducting correctly but remitting late — attracts interest at 1.5% per month, calculated from the date of deduction to the date of payment. Both are calculated per month or part thereof, meaning a payment delayed by even one day into a new month attracts a full month's interest.

Late filing of the TDS return itself is penalized separately under Section 234E at ₹200 per day of delay, capped at the total TDS amount for that quarter. This is a strict, non-discretionary fee that begins accruing from the due date without any notice requirement. Separately, and more severely, Section 271H allows for a penalty of ₹10,000 to ₹1,00,000 for returns not filed within one month of the due date — though relief is available if the TDS amount, applicable interest, and late fees are all paid and the return is filed within one year of the due date.

For deductors managing TDS across multiple sections and TAN registrations, the practical risk is less about knowing the rules and more about tracking deduction dates, payment dates, and filing dates consistently across a high volume of transactions. A single missed remittance date on a large deduction can generate more interest liability than several smaller delays combined, simply because Section 201(1A) interest scales with both the amount and the duration.

Building a compliance calendar that flags the 7th of every month for payment and the quarter-end-plus-one-month mark for filing — with automatic escalation a few days ahead of each — remains the most effective operational safeguard, particularly for firms managing TDS compliance across several client TANs simultaneously.