Complete interactive checklist as per Income Tax Act 2025 (effective 1 Apr 2026). Covers new Section 392/393 codes, Finance Act 2025 threshold updates, renamed forms (130/131/138/140), and FY 2026–27 deadlines. CA/CS verified.
TDS Payment & Return Due Dates
Missing TDS deadlines attracts interest at 1.5% per month plus late filing fees of ₹200/day (max equal to tax). Stay ahead with these dates.
| Event | Due Date | Applicable To |
|---|---|---|
| Monthly TDS deposit (Apr–Feb) | 7th of next month | All deductors |
| TDS deposit for March | 30th April | All deductors |
| Q1 Return (Apr–Jun) — Form 138/140/144 (was 24Q/26Q/27Q) | 31 Jul 2026 | All deductors |
| Q2 Return (Jul–Sep) — Form 138/140/144 | 31 Oct 2026 | All deductors |
| Q3 Return (Oct–Dec) — Form 138/140/144 | 31 Jan 2027 | All deductors |
| Q4 Return (Jan–Mar) — Form 138/140/144 | 31 May 2027 | All deductors |
| Form 130 (was Form 16) issue to employees | 15 Jun 2027 | Employers (Sec 392) |
| Form 131 (was Form 16A) issue to deductees | 15 days after return | Non-salary TDS |
| TDS on property (Form 26QB → new challan form) | 30 days from month-end | Property buyers >₹50L |
| TDS on rent by Indiv/HUF (Sec 393, code 1026) | 30 days from month-end | Individuals & HUF |
Key TDS Sections & Rates
FY 2026–27 (Tax Year 2026–27) as per Income Tax Act 2025 (effective 1 Apr 2026). Old section numbers (ITA 1961) shown for reference. Finance Act 2025 thresholds apply. Higher rate (20%+) if PAN not furnished or Aadhaar not linked.
| Old Section (ITA 1961) | Nature of Payment | Threshold | Rate | ITA 2025 Code |
|---|---|---|---|---|
| 192 | Salaries | Basic exemption limit | Slab rate | Sec 392 |
| 192A | EPF premature withdrawal | ₹50,000 | 10% | Sec 392 / 1011 |
| 193 | Interest on securities (debentures, govt. securities) | ₹10,000 | 10% | Sec 393 / 1005 |
| 194 | Dividends (domestic companies) | ₹5,000 | 10% | Sec 393 / 1007 |
| 194A | Interest — Banks / Post Office / Others | ₹1,00,000 (sr. citizens) / ₹50,000 (bank) / ₹10,000 (others) ▲ raised 1 Apr 2025 | 10% | Sec 393 / 1021 |
| 194B | Lottery / crossword winnings | ₹10,000 per transaction | 30% | Sec 393 / 1008 |
| 194BA | Online game winnings (net) | No threshold | 30% | Sec 393 / 1010 |
| 194C | Contractor / Sub-contractor payments | ₹30,000 single / ₹1,00,000 aggregate | 1% (Indiv/HUF) / 2% (others) | Sec 393 / 1023–1024 |
| 194I(a) | Rent — Plant & Machinery | ₹50,000/month ▲ changed 1 Apr 2025 | 2% | Sec 393 / 1018 |
| 194I(b) | Rent — Land / Building / Furniture | ₹50,000/month ▲ changed 1 Apr 2025 | 10% | Sec 393 / 1009 |
| 194J(a) | Technical services / Call centre | ₹50,000 ▲ raised 1 Apr 2025 | 2% | Sec 393 / 1022 |
| 194J(b) | Professional fees / Director fees | ₹50,000 ▲ raised 1 Apr 2025 | 10% | Sec 393 / 1027 |
| 194M | Payments by Indiv/HUF to contractors & professionals | ₹50 lakh aggregate | 2% | Sec 393 / 1028 |
| 194Q | Purchase of goods (buyer >₹10 Cr turnover) | ₹50 lakh per seller | 0.1% | Sec 393 / 1030 |
| 194-IA | Immovable property purchase | ₹50 lakh | 1% | Sec 393 / 1025 |
| 194-IB | Rent by Individuals/HUF (monthly) | ₹50,000/month | 2% | Sec 393 / 1026 |
| 194T NEW | Payments to partners — salary, bonus, commission, interest on capital | ₹20,000 per partner per year | 10% | Sec 393 / 1067 |
| 195 | Payments to non-residents / foreign companies | No threshold | Per DTAA / 20–40% (no DTAA) | Sec 393(2) / 1039+ |
✓ Income Tax Act 2025 (effective 1 Apr 2026): All TDS/TCS provisions consolidated into Section 392 (salary), Section 393 (non-salary), Section 394 (TCS). Old section numbers (192–194T) replaced by numeric payment codes 1001–1067. Old forms 24Q/26Q/27Q replaced by Form 138/140/144. Form 16 → Form 130. Form 16A → Form 131. Forms 15G/15H merged into Form 121.
⚠ Finance Act 2025 Threshold Changes (effective 1 Apr 2025): Sec 194I rent threshold changed to ₹50,000/month (from ₹2,40,000 p.a.). Sec 194J raised to ₹50,000 (from ₹30,000). Sec 194A for senior citizens raised to ₹1,00,000. Sec 194G raised to ₹20,000. Sec 194T (partner payments, 10%) applies from 1 Apr 2025. TCS on sale of goods (206C(1H)) removed.
TDS Compliance Checklist
Registration
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Obtain TAN (Tax Deduction Account Number) — Form 49B via Protean eGov portal (tin.tin.proteantech.in)
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Verify TAN is linked to correct PAN of deductor entity
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Register on TRACES (traces.tdscpc.gov.in — revamped 2026) with TAN credentials
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Add authorized persons on TRACES for filing and downloads
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Verify all vendor/payee PAN details in accounting system
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Set up reminder calendar for 7th and quarterly return dates
Monthly Compliance
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Deduct TDS at correct rate at time of credit or payment (whichever is earlier)
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Check threshold limits before deducting (section-wise)
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Apply lower/nil deduction certificate (Form 13) if received from payee — verify via TRACES portal
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Deposit TDS challan (ITNS 281) by 7th of next month (30 Apr for March)
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Record challan number, BSR code, and date in books
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Cross-verify TDS deducted vs amount deposited every month
Quarterly Return Filing
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Prepare Form 26Q (non-salary payments) — all sections except 192
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Prepare Form 24Q (salary) — for employer deductors
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Prepare Form 27Q (payments to non-residents) — if applicable
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Match PAN of all deductees — correct mismatches before filing
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Reconcile challans with return data (BSR code, date, amount)
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File returns via TRACES / updated RPU (supports new ITA 2025 form formats) before deadline
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Download and save filing acknowledgment (Token number)
Certificate Issuance
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Download Form 130 (was Form 16) from TRACES (Part A — salary TDS certificate) after Q4 return accepted
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Prepare Form 130 Part B (salary breakup and deductions) for each employee
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Issue Form 130 to all employees by 15 June 2027
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Download Form 131 (was Form 16A) from TRACES for non-salary deductees
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Issue Form 131 within 15 days of return filing date
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Retain copies of all TDS certificates for 7 years
ITA 2025 Transition (from 1 Apr 2026)
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Update accounting software to use new Section 393 numeric payment codes (1005–1067) for all TDS transactions from 1 Apr 2026
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Collect Form 121 (replaces Forms 15G & 15H – now merged) from eligible deductees for nil/lower TDS declarations
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File quarterly TDS returns in new Form 138 (salary), Form 140 (non-salary residents), Form 144 (non-residents) – old forms 24Q/26Q/27Q invalid from TY 2026-27
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Issue Form 130 (replaces Form 16) to salaried employees; issue Form 131 (replaces Form 16A) to non-salary deductees
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Maintain dual-code reference: old section numbers (194C, 194J etc.) for pre-Apr 2026 transactions; new ITA 2025 codes for Apr 2026 onwards
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Section 194T (Sec 393/1067): Deduct 10% TDS on partner salary/bonus/commission/interest > ₹20,000 p.a. – applicable since 1 Apr 2025
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Finance Act 2025: Apply updated 194I threshold (₹50,000/month) and 194J threshold (₹50,000) from 1 Apr 2025
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Verify Aadhaar-PAN linking for all deductees – unlinked PANs attract 20% TDS under Sec 206AA
Annual Review
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Reconcile Form 26AS / AIS of key vendors with your TDS records
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Address any mismatch demands from TRACES
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File correction returns if any errors in original returns
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Review section-wise applicability — any new payments requiring TDS?
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Update vendor master with new PAN / Aadhaar-PAN linked status
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Check for any Section 206AB / 206CCA higher-rate applicability (non-filers)
💡 TaxClue Tip: Under ITA 2025, the equivalent of Section 206AB still requires higher TDS (twice the rate) from specified persons who have not filed ITR for 2 prior years with TDS/TCS > ₹50,000 each year. Always verify payee compliance status on traces.tdscpc.gov.in (revamped TRACES portal) before deducting.
Key Facts About TDS Compliance Checklist 2026
- Applies in: All states across India, under the relevant central law.
- Mode: Mostly online via the official government portal.
- Typical timeline: Ranges from a few days to a few weeks depending on the case.
- Non-compliance: May attract penalties, interest or late fees.
- Expert help: TaxClue completes the entire process end to end for you.
What is TDS Compliance Checklist 2026?
TDS Compliance Checklist 2026 is an important compliance and legal topic for businesses and individuals in India. This guide explains its meaning, applicability and key requirements in simple language so you can understand and stay fully compliant.
Who needs to know about TDS Compliance Checklist 2026?
Business owners, startups, professionals, and taxpayers dealing with TDS Compliance Checklist 2026 should understand the applicable rules. Requirements can vary by turnover, entity type and activity, so it is best to confirm your specific case before proceeding.
Over 90% of compliance penalties in India arise from missed due dates — timely handling can save businesses thousands of rupees each year.
TDS Compliance Checklist 2026: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.