TDS Payment Due Date for FY 2025-26

TDS refers to tax deducted at source, while TCS denotes tax collected at source. If an individual makes a payment to the recipient, TDS is required to be deducted at a specified rate and deposited with the government, according to the Income Tax Act. 

In the case of TCS, the individual accepting the payment is responsible for collecting tax from the payer and depositing it with the government.

In this guide, you will learn the TDS payment due dates, penalties for late filing of TDS and more.

TDS Payment Due Dates

The due dates for depositing the TDS and TDS return filing for the financial year 2025-26 for deductors are as follows -

*Government deductors are required to deposit TDS made through book entry (Treasury Challan) on the same day of deduction. However, for deductions which occur in the month of March, the deposit is to be made before the 7th of April.

How to Make TDS Payment Online

Follow the steps outlined below to make TDC (tax deducted at the source) payments. Please note that TDS Payments cannot be made without a valid TAN number.

• Step 1: Log in to the e-filing portal using your credentials
• Step 2: Navigate to the ‘e-Pay Tax’ option under the ‘e-file’ dropdown menu
• Step 3: Click on the ‘New Payment’ option.
• Step 4: Choose from the various types of TDS payments - TDS on sale of property, rent of property, payment to contractors/professionals, and transfer of virtual digital assets -  and click on ‘Proceed’
• Step 5: Fill in the necessary details such the deductor, deductee, and deduction details
• Step 6: Continue to make the payment through the preferred payment mode
• Step 7: Once the transaction has been confirmed, you will receive a challan which will act as a proof of payment

Penalties for Late Filing of TDS/TCS Statements for FY 2025-26

• Penalty under Section 234E

In case you fail to file the TDS/TCS statements within the due date, you will be penalised under Section 234E with a fee of ₹200 per day from the due date until the day of filing and not exceeding the TDS/TCS amount

• Penalty under Section 271H

Now, if you have failed to file the TDS/ TCS statement for an entire year, you can be directed to pay a penalty ranging from ₹10,000 to up to ₹1 lakh under Section 271H of the Income Tax Act. In some cases, you may be directed to pay a penalty under section 271H if the details furnished in the form are incorrect.

Interest on Late Payment of TDS

It is important to ensure that the interest is paid before filing the TDS return. 

Under Section 201(1A) of the Income Tax Act, if TDS is deposited late after deduction, interest is levied at a rate of 1.5% per month. This interest is calculated from the date when TDS was deducted to the actual date of deposit, considering each month as a full period of 30 days. 

For instance, if a TDS of ₹4,000 was deducted on 14th January 2025 and deposited on 15th May 2025, the interest calculation would be ₹4,000 x 1.5% p.m. x 5 months (Jan-May) = ₹300.

The term ‘month’ is not precisely defined in the Income Tax Act, of 1961, but court cases suggest it should be considered as a period of 30 days, not a calendar month. The interest begins accruing from the date of the TDS deduction, not the due date for the deposit.

Suppose your TDS was deducted on 22nd February 2025 with a due date of 8th March 2025, and was deposited on 9th March 2025 (one day late), the interest would apply for 2 months. This means the interest calculation will be 1.5% p.m. x 2 months = 3% on the TDS amount.