✓ Free Checklist
TDS Compliance Checklist 2026–27
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.
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✓ Income Tax Act 2025 updated
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📅 Key Deadlines
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 |
📄 TDS Sections
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 |
| 194D | Insurance commission | ₹15,000 | 2% | Sec 393 / 1013 |
| 194DA | Life insurance maturity proceeds | ₹1,00,000 | 1% | Sec 393 / 1014 |
| 194G | Commission on lottery tickets | ₹20,000 ▲ raised 1 Apr 2025 | 2% | Sec 393 / 1016 |
| 194H | Commission / Brokerage | ₹15,000 | 2% | Sec 393 / 1006 |
| 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.
✓ Interactive Checklist
TDS Compliance Checklist
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Registration
- Obtain TAN (Tax Deduction Account Number) — Form 49B via Protean eGov portal (tin.tin.proteantech.in)
- Verify TAN is linked to correct PAN of deductor entity
- Register on TRACES (traces.tdscpc.gov.in — revamped 2026) with TAN credentials
- Add authorized persons on TRACES for filing and downloads
- Verify all vendor/payee PAN details in accounting system
- Set up reminder calendar for 7th and quarterly return dates
Monthly Compliance
- Deduct TDS at correct rate at time of credit or payment (whichever is earlier)
- Check threshold limits before deducting (section-wise)
- Apply lower/nil deduction certificate (Form 13) if received from payee — verify via TRACES portal
- Deposit TDS challan (ITNS 281) by 7th of next month (30 Apr for March)
- Record challan number, BSR code, and date in books
- Cross-verify TDS deducted vs amount deposited every month
Quarterly Return Filing
- Prepare Form 26Q (non-salary payments) — all sections except 192
- Prepare Form 24Q (salary) — for employer deductors
- Prepare Form 27Q (payments to non-residents) — if applicable
- Match PAN of all deductees — correct mismatches before filing
- Reconcile challans with return data (BSR code, date, amount)
- File returns via TRACES / updated RPU (supports new ITA 2025 form formats) before deadline
- Download and save filing acknowledgment (Token number)
Certificate Issuance
- Download Form 130 (was Form 16) from TRACES (Part A — salary TDS certificate) after Q4 return accepted
- Prepare Form 130 Part B (salary breakup and deductions) for each employee
- Issue Form 130 to all employees by 15 June 2027
- Download Form 131 (was Form 16A) from TRACES for non-salary deductees
- Issue Form 131 within 15 days of return filing date
- Retain copies of all TDS certificates for 7 years
ITA 2025 Transition (from 1 Apr 2026)
- Update accounting software to use new Section 393 numeric payment codes (1005â1067) for all TDS transactions from 1 Apr 2026
- Collect Form 121 (replaces Forms 15G & 15H â now merged) from eligible deductees for nil/lower TDS declarations
- File quarterly TDS returns in new Form 138 (salary), Form 140 (non-salary residents), Form 144 (non-residents) â old forms 24Q/26Q/27Q invalid from TY 2026-27
- Issue Form 130 (replaces Form 16) to salaried employees; issue Form 131 (replaces Form 16A) to non-salary deductees
- Maintain dual-code reference: old section numbers (194C, 194J etc.) for pre-Apr 2026 transactions; new ITA 2025 codes for Apr 2026 onwards
- Section 194T (Sec 393/1067): Deduct 10% TDS on partner salary/bonus/commission/interest > â¹20,000 p.a. â applicable since 1 Apr 2025
- Finance Act 2025: Apply updated 194I threshold (â¹50,000/month) and 194J threshold (â¹50,000) from 1 Apr 2025
- Verify Aadhaar-PAN linking for all deductees â unlinked PANs attract 20% TDS under Sec 206AA
Annual Review
- Reconcile Form 26AS / AIS of key vendors with your TDS records
- Address any mismatch demands from TRACES
- File correction returns if any errors in original returns
- Review section-wise applicability — any new payments requiring TDS?
- Update vendor master with new PAN / Aadhaar-PAN linked status
- 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.
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