What is TDS? (Concept)
TDS (Tax Deducted at Source) means tax is deducted at the time of payment by the payer and deposited with the government.
👉 Purpose:
- Tax collection at source
- Reduce evasion
- Ensure regular revenue
👉 Credit available to taxpayer in:
- Form 26AS
- AIS
Click Here to read New TDS Rates Chart 2026-27
Major Change from 1 April 2026 (New Act)
🔄 Structural Shift
| Old Act (1961) | New Act (2025) |
|---|---|
| Multiple sections (192, 194 series) | Consolidated |
| Complex structure | Simplified |
| Scattered provisions | Centralised |
👉 Now:
- Section 392 → Salary TDS
- Section 393 → Other TDS
✔️ Concept same, structure simplified
TDS PAYMENT DUE DATES
📅 Monthly Payment Due Dates
| Particular | Due Date |
|---|---|
| TDS deducted in any month | 7th of next month |
| TDS for March | 30th April (next FY) |
👉 Example:
- April deduction → 7 May
- March deduction → 30 April
✔️ Same under old & new Act
⚠️ Special Case – Government Deductors
- Same day payment (book entry)
- March → 7 April
⚠️ Interest on Delay
| Default | Interest |
|---|---|
| Non-deduction | 1% per month |
| Late deposit | 1.5% per month |
TDS RETURN FILING DUE DATES
📅 Quarterly Filing (FY 2026–27)
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | Apr – Jun 2026 | 31 July 2026 |
| Q2 | Jul – Sep 2026 | 31 Oct 2026 |
| Q3 | Oct – Dec 2026 | 31 Jan 2027 |
| Q4 | Jan – Mar 2027 | 31 May 2027 |
👉 Rule remains same under new Act
TDS RETURN FORMS
🔄 A. Quarterly TDS Return Forms
| Purpose | Old Form | New Form (2025 Act) |
|---|---|---|
| Salary TDS Return | 24Q | Form 138 |
| Non-Salary (Resident) | 26Q | Form 140 |
| Non-Resident TDS | 27Q | Form 142 / 144 |
| TCS Return | 27EQ | Form 143 |
👉 ✔️ Forms renamed, compliance same
🔄 B. TDS Certificates
| Purpose | Old Form | New Form |
|---|---|---|
| Salary Certificate | Form 16 | Form 130 |
| Non-Salary Certificate | Form 16A | Form 131 |
🔄 C. Declaration Forms
| Purpose | Old Forms | New Form |
|---|---|---|
| No TDS declaration | 15G / 15H | Form 121 |
👉 Major simplification
🔄 D. Challan-cum Statement (Major Change)
| Old Forms | New Form |
|---|---|
| 26QB (Property) | |
| 26QC (Rent) | |
| 26QD (Contract) | |
| 26QE (Crypto) | |
| 👉 Merged | Form 141 |
👉 4 forms → 1 unified form
SPECIAL CASES – DIFFERENT DEADLINES
| Section | Nature | Due Date |
|---|---|---|
| Property (earlier 194-IA) | Form 141 | 30 days |
| Rent (Individual) | Form 141 | 30 days |
| Contract/Professional (Individual) | Form 141 | 30 days |
| Crypto | Form 141 | 30 days |
PENALTIES & CONSEQUENCES
📌 Late Filing Fee
- ₹200 per day
- Max = TDS amount
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