TDS / TCS Returns.
Filed Accurately.On Time. Every Quarter.
Expert TDS and TCS return filing under India's new Income Tax Act 2025. All forms (138/140/143/144), all payment codes (1001–1067), challan reconciliation, TRACES compliance, and Form 130/131/133 certificate issuance — fully managed.
ITA 2025 is live from 1 April 2026. Old sections (192–194T) are gone — replaced by Sections 392, 393 & 394. Old form numbers (24Q/26Q/27Q/27EQ) replaced by Forms 138/140/144/143. Old payment codes replaced by codes 1001–1067. Filing with old section numbers for Tax Year 2026-27 causes validation errors. We handle the transition correctly.
Get Free TDS Compliance Check
We audit your TDS deductions, identify defaults, and fix returns — free initial assessment.
Got it!
Saved to our CRM. Our TDS expert will call you within 30 minutes (Mon–Sat, 10 AM – 7 PM).
TDS / TCS Interest & Penalty Calculator
Calculate exact interest on late TDS deduction or payment, late filing fee, expense disallowance, and total liability — under ITA 2025 / Section 201(1A)
Enter Your Details
Total liability (interest + late fee)
Interest Breakdown — Sec 201(1A)
Late Filing Fee — Sec 427 (old 234E)
Expense Disallowance Risk — Sec 35(b)
30% of your payment amount will be disallowed as a business expense if TDS was not deducted or deposited — directly increasing your taxable income and tax liability.
Penalty Sec 271H (Prosecution Risk)
How interest is calculated (ITA 2025)
- Late deduction: 1% per month from date deductible → date deducted
- Late deposit: 1.5% per month from date deducted → date deposited
- Partial month = full month (even 1 day = 1 month)
- Interest runs from deduction date — not due date
- Late filing fee: ₹200/day, capped at TDS amount
- 30% expense disallowance if TDS not deducted (domestic)
- 100% disallowance for NRI payments without TDS
What changed for TDS / TCS from 1 April 2026
The Income Tax Act 2025 restructures TDS entirely. Here's what every deductor must know before filing the first quarterly return for Tax Year 2026-27.
60+ sections → 3 sections
All TDS sections (192–194T) consolidated into: Sec 392 (salary), Sec 393 (all other payments), Sec 394 (TCS). Rates and thresholds unchanged.
Section codes → Payment codes (1001–1067)
TDS challans and returns now use numeric payment codes instead of section numbers. ERP systems must be updated to map old sections to new codes before filing Q1 returns for Tax Year 2026-27.
24Q/26Q/27Q/27EQ → 138/140/144/143
All quarterly TDS return form numbers have changed. Form 16 → Form 130. Form 16A → Form 131. Form 27D → Form 133. Using old form numbers for TY 2026-27 creates validation errors on TRACES portal.
Manpower supply — TDS now explicit
Supply of manpower/workers is now explicitly included as "work" under ITA 2025. TDS applies at 1% (individual/HUF payee) or 2% (others). If you were not deducting TDS on manpower invoices — correct from 1 April 2026.
2-year correction limit from 1 April 2026
Under ITA 2025 (Section 397(3)), all TDS/TCS return corrections must be filed within 2 years from the end of the Tax Year. TRACES portal enforces this strictly — late corrections are permanently rejected.
TAN not needed for NRI property purchase
Buyers purchasing property from NRIs can now deduct TDS using only their PAN — no TAN registration required. A simplified PAN-based challan replaces the old Form 26QB process for NRI sellers.
TDS & TCS rate chart — Tax Year 2026-27 (ITA 2025)
Rates and thresholds are unchanged — only section numbers and payment codes have changed. Old section references shown for cross-reference only.
| New Section (ITA 2025) | Nature of Payment | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 392(1) Code 1001 | Salary to resident employees | Taxable income after deductions | As per slab | 194C → 192 |
| Sec 393(1) Code 1012 | Payment to contractor (Individual/HUF) | ₹30,000 single / ₹1,00,000 annual | 1% | 194C(1) |
| Sec 393(1) Code 1013 | Payment to contractor (Others — Firms/Cos) | ₹30,000 single / ₹1,00,000 annual | 2% | 194C(2) |
| Sec 393(1) Code 1014 | Manpower supply services (Individual/HUF) — NEW | ₹30,000 single / ₹1,00,000 annual | 1% | 194C (clarified) |
| Sec 393(1) Code 1015 | Manpower supply services (Others) — NEW | ₹30,000 single / ₹1,00,000 annual | 2% | 194C (clarified) |
| Sec 393(1) Code 1041 | Purchase of goods (by specified buyers) | ₹50,00,000 annual | 0.1% | 194Q |
| Sec 393(1) Code 1042 | Purchase of immovable property | ₹50,00,000 | 1% | 194-IA |
| Sec 393(1) Code 1043 | Commission / brokerage | ₹20,000 annual | 5% | 194H |
| New Section (ITA 2025) | Nature of Payment | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 393(1) Code 1005 | Interest from banks / post office (Non-Senior) | ₹50,000 annual | 10% | 194A |
| Sec 393(1) Code 1006 | Interest from banks / post office (Senior 60+) | ₹1,00,000 annual (raised) | 10% | 194A |
| Sec 393(1) Code 1007 | Interest on securities (listed bonds, debentures) | ₹10,000 annual | 10% | 193 |
| Sec 393(1) Code 1025 | Rent on land/building/furniture | ₹50,000/month | 10% | 194-I(b) |
| Sec 393(1) Code 1026 | Rent on plant, machinery & equipment | ₹50,000/month | 2% | 194-I(a) |
| Sec 393(1) Code 1044 | Rent by Individual/HUF not liable to audit | ₹50,000/month | 5% | 194-IB |
| Sec 393(1) Code 1008 | Dividend on shares | ₹10,000 annual | 10% | 194 |
| Sec 393(1) Code 1009 | Partners' remuneration / interest from firm | ₹20,000 annual | 10% | 194T (new) |
| New Section (ITA 2025) | Nature of Payment | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 393(1) Code 1019 | Professional fees (Doctor, CA, Lawyer, Consultant) | ₹50,000 annual | 10% | 194J(a) |
| Sec 393(1) Code 1020 | Technical services (IT, engineering, support) | ₹50,000 annual | 2% | 194J(b) |
| Sec 393(1) Code 1021 | Director fees / sitting fees (not salary) | Any amount | 10% | 194J |
| Sec 393(1) Code 1030 | Royalty to resident | ₹50,000 annual | 10% | 194J(a) |
| Sec 393(1) Code 1031 | Non-compete fees / client non-solicitation | ₹50,000 annual | 10% | 194J |
| Sec 393(1) Code 1035 | Insurance commission | ₹20,000 annual | 5% | 194D |
| Sec 393(1) Code 1036 | Payment to agency (advertisement) | ₹20,000 annual | 2% | 194C / 194J |
| Sec 393(1) Code 1011 | Payment to resident person — No PAN (Sec 206AA) | Any amount | 20% minimum | 206AA |
| New Section (ITA 2025) | Nature of Payment | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 393(2) Code 1051 | Payment to non-resident (other than salary) | Any amount | As DTAA / 30% | 195 |
| Sec 393(1) Code 1045 | Transfer of Virtual Digital Assets (Crypto) | ₹50,000 annual | 1% | 194S |
| Sec 393(3) Code 1060 | Lottery / prize money / horse race winnings | ₹10,000 | 30% | 194B/194BB |
| Sec 393(1) Code 1022 | Perquisites & business benefits to residents | ₹20,000 annual | 10% | 194R |
| Sec 393(1) Code 1028 | Cash withdrawal from bank | ₹1 Cr (filer) / ₹20L (non-filer) | 2% / 5% | 194N |
| Sec 393(1) Code 1046 | Immovable property from NRI seller | Any amount | 20%+ (DTAA) | 195/194-IA |
| Sec 393(1) Code 1029 | EPF withdrawal before 5 years | ₹50,000 | 10% | 192A |
| Sec 393(1) Code 1010 | Mutual fund repurchase / redemption | ₹1,000 annual | 10% | 194F |
| New Section (ITA 2025) | Nature of Collection | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 394(1) Code 1062 | Sale of alcoholic liquor | Any amount | 2% (raised) | 206C(1) |
| Sec 394(1) Code 1063 | Sale of tendu leaves | Any amount | 2% (revised) | 206C(1) |
| Sec 394(1) Code 1064 | Sale of timber / forest produce | Any amount | 2.5% | 206C(1) |
| Sec 394(1) Code 1065 | Sale of scrap / waste | Any amount | 2% (revised) | 206C(1) |
| Sec 394(1) Code 1066 | Sale of motor vehicle (>₹10L) | ₹10,00,000 | 1% | 206C(1F) |
| Sec 394(2) Code 1067 | LRS remittance — education/medical (revised) | ₹7,00,000 | 2% (reduced) | 206C(1G) |
| Sec 394(2) Code 1067 | LRS — overseas tour packages | Any amount | 2% flat (revised) | 206C(1G) |
| Sec 394(1) Code 1061 | Sale of goods by e-commerce operator | ₹5,00,000 annual | 1% | 206C(1H) / 194O |
* Section numbers under ITA 1961 shown for reference only. For Tax Year 2026-27 (payments on/after 1 April 2026), always cite the new ITA 2025 section and payment code. Rates shown are standard rates — higher rates apply when PAN is not available (minimum 20% under Section 206AA). DTAA benefits may reduce rates for NRI payments.
TDS / TCS deposit & return filing due dates
Missing deposit deadlines attracts 1.5%/month interest. Missing return deadlines attracts ₹200/day fee. Know every deadline — and let Taxocount file before all of them.
TDS / TCS Challan Deposit
Tax deducted or collected in any month must be deposited to the government by the 7th of the following month. Government deductors via challan: same 7th rule. Via book entry: same day.
TDS Deposit for March
Special rule for March deductions — deposit due date is 30th April (not 7th May). Applies to non-government deductors. March TDS deposited in May attracts interest from deduction date.
Q1 Return (Apr–Jun) — Form 138/140/143
Quarterly TDS/TCS return for April to June quarter. All deductions, payments, and deductee PAN details must be reported. Late fee: ₹200/day from 1 August.
Q2 Return (Jul–Sep)
TDS/TCS return for July to September quarter. Late fee applies from 1 November. Also the last date for correction statements for TY 2024-25 Q3 and earlier.
Q3 Return (Oct–Dec)
TDS/TCS return for October to December quarter. For property purchase TDS (Form 26QB equivalent), separate challan-cum-statement due within 30 days of the month of deduction.
Q4 Return (Jan–Mar) + Form 130/131
TDS return for January to March quarter. TDS certificates (Form 130 for salary, Form 131 for others) must be issued by 15th June to deductees for the entire year.
* Q4 due date is 31 May — not 31 March. For challan-cum-statement cases (property, rent by individuals, VDA): due date is 30 days from the end of the month of deduction. Taxocount tracks and files every due date for all our clients — zero missed deadlines since inception.
Every TDS / TCS return form — we file them all
All quarterly return form numbers have changed under ITA 2025. Using old form numbers for Tax Year 2026-27 transactions generates TRACES validation errors. We file with the correct forms.
Salary TDS Return
Quarterly return under Section 392 — replaces old Form 24Q. Reports salary paid to employees, TDS deducted, challan details, and employee-wise breakup. Basis for issuing Form 130 (TDS certificate) to employees.
Non-Salary TDS (Residents)
Quarterly return under Section 393(1) — replaces Form 26Q. Covers TDS on contractor payments, rent, professional fees, interest, commission, dividends, and all other resident payments.
Non-Resident TDS Return
Quarterly return under Section 393(2) — replaces Form 27Q. Reports TDS on payments to foreign companies, NRIs, non-residents — royalties, technical fees, interest, dividends under DTAA provisions.
TCS Return
Quarterly return under Section 394 — replaces Form 27EQ. Reports Tax Collected at Source on sale of scrap, alcoholic liquor, motor vehicles, LRS remittances, e-commerce collections, and other TCS items.
Salary TDS Certificate
Annual TDS certificate issued to employees — replaces Form 16. Must be issued by 15 June for the preceding Tax Year. 3-part structure: deductor details, salary computation, and tax details. Required for employee ITR filing.
Non-Salary TDS Certificate
TDS certificate for non-salary deductions — replaces Form 16A. Issued quarterly to vendors, contractors, and professionals within 15 days of the return due date. Essential for deductee's ITR reconciliation with Form 26AS.
End-to-end TDS/TCS compliance — from deduction to certificate
You provide payment details — we handle every step from challan generation to quarterly return filing to TDS certificate issuance.
TDS Rate Identification
For every payment you make — contractor, rent, professional fees, salary, commission — we identify the exact section (392/393/394), payment code (1001–1067), and applicable rate under ITA 2025.
Challan Generation & Payment
Monthly TDS challan preparation and guidance on payment — with correct payment codes, section references, and assessment year mapping to avoid challan mismatches on TRACES.
Quarterly Return Filing
All quarterly TDS/TCS returns (Forms 138/140/143/144) filed on time with correct data — employee details, vendor PAN, deduction amounts, challan mapping, and section codes per ITA 2025.
Form 26AS / AIS Reconciliation
Monthly reconciliation of deposited TDS with TRACES / Form 26AS — ensuring every deduction reflects correctly in your deductees' accounts and preventing credit mismatches.
TDS Certificate Issuance
Form 130 (salary, annual) and Form 131 (non-salary, quarterly) generated and issued to all employees and vendors within the statutory deadline. Digital certificates on WhatsApp/email.
TDS Notice & Default Resolution
Short deduction notices, demand notices for interest, and Section 271H penalties — handled by our TDS experts. We respond, reconcile, and clear defaults with minimum financial impact.
TRACES Correction & Rectification
Wrong PAN, incorrect section codes, challan mismatches, deductee name errors — all correction statements filed on TRACES within the 2-year correction window under ITA 2025.
Lower TDS Certificate (Form 13)
Application to Assessing Officer for lower deduction certificate for vendors / deductees who qualify. Prevents excess TDS deduction and improves vendor cash flow without compliance risk.
The true cost of TDS non-compliance in 2026
TDS defaults are not just fines — they cascade into business disallowances, vendor relationship damage, and prosecution risk. Here's exactly what's at stake.
Interest: Late Deduction
From the date TDS was deductible to the actual date of deduction. Even 1 day delay = 1 full month's interest. On ₹1 lakh — that's ₹1,000 per month, non-deductible as business expense.
Interest: Late Deposit
From the date of deduction to the actual date of deposit. Higher than late deduction rate. Applies even if just 1 day late after the 7th. On ₹5 lakh for 5 months = ₹37,500 in interest alone.
Late Filing Fee — Sec 427
₹200 per day from the return due date to actual filing date. Capped at the TDS amount for that quarter. ₹200 × 76 days = ₹15,200. If TDS was only ₹12,000, you still pay ₹12,000.
Expense Disallowance — Sec 35(b)
30% of the payment amount disallowed as a deductible business expense if TDS was not deducted. On ₹10 lakh contractor payment, ₹3 lakh is added back to taxable income. For NRI payments: 100% disallowed.
Penalty — Sec 271H
Penalty for non-filing of return or filing with incorrect data. Can be levied in addition to the ₹200/day late fee. Triggered by persistent non-filing or substantial data errors.
Prosecution — Sec 276B
Rigorous imprisonment from 3 months to 7 years for willful failure to deposit TDS with the government. Triggered in cases of large defaults, repeated non-compliance, or intentional tax evasion.
TDS / TCS compliance plans
Every plan includes correct ITA 2025 section references, payment codes 1001–1067, all new form numbers, and TRACES reconciliation.
- 1 quarterly TDS return (Form 138 or 140)
- Challan reconciliation
- Form 130 / 131 certificate issuance
- Up to 10 deductee entries per quarter
- ITA 2025 section & payment code mapping
- All quarterly TDS return forms (138 + 140)
- Up to 50 deductee entries per quarter
- Form 26AS / AIS reconciliation monthly
- Form 130 + 131 for all deductees
- TRACES default notice handling (1 notice)
- ITA 2025 payment code mapping
- All 4 quarterly return forms
- TCS return (Form 143) included
- NRI / non-resident TDS (Form 144)
- Unlimited deductee entries
- Unlimited TRACES corrections
- Annual TDS audit & Form 26 support
* Pricing per quarter. Annual plans with additional discount available. Backlog returns charged separately based on number of quarters and entries. Call for exact quote.
Frequently asked questions about TDS / TCS filing
Everything a business owner needs to know about TDS compliance under the new Income Tax Act 2025.
No more TDS defaults.
No more ₹200/day late fees.
Expert TDS/TCS compliance under ITA 2025. All new forms, all new section codes, challan reconciliation, and certificate issuance — managed by Taxocount every quarter.
TDS / TCS Returns.
Filed Accurately.On Time. Every Quarter.
Expert TDS and TCS return filing under India's new Income Tax Act 2025. All forms (138/140/143/144), all payment codes (1001–1067), challan reconciliation, TRACES compliance, and Form 130/131/133 certificate issuance — fully managed.
ITA 2025 is live from 1 April 2026. Old sections (192–194T) are gone — replaced by Sections 392, 393 & 394. Old form numbers (24Q/26Q/27Q/27EQ) replaced by Forms 138/140/144/143. Old payment codes replaced by codes 1001–1067. Filing with old section numbers for Tax Year 2026-27 causes validation errors. We handle the transition correctly.
Get Free TDS Compliance Check
We audit your TDS deductions, identify defaults, and fix returns — free initial assessment.
Got it!
Saved to our CRM. Our TDS expert will call you within 30 minutes (Mon–Sat, 10 AM – 7 PM).
TDS / TCS Interest & Penalty Calculator
Calculate exact interest on late TDS deduction or payment, late filing fee, expense disallowance, and total liability — under ITA 2025 / Section 201(1A)
Enter Your Details
Total liability (interest + late fee)
Interest Breakdown — Sec 201(1A)
Late Filing Fee — Sec 427 (old 234E)
Expense Disallowance Risk — Sec 35(b)
30% of your payment amount will be disallowed as a business expense if TDS was not deducted or deposited — directly increasing your taxable income and tax liability.
Penalty Sec 271H (Prosecution Risk)
How interest is calculated (ITA 2025)
- Late deduction: 1% per month from date deductible → date deducted
- Late deposit: 1.5% per month from date deducted → date deposited
- Partial month = full month (even 1 day = 1 month)
- Interest runs from deduction date — not due date
- Late filing fee: ₹200/day, capped at TDS amount
- 30% expense disallowance if TDS not deducted (domestic)
- 100% disallowance for NRI payments without TDS
What changed for TDS / TCS from 1 April 2026
The Income Tax Act 2025 restructures TDS entirely. Here's what every deductor must know before filing the first quarterly return for Tax Year 2026-27.
60+ sections → 3 sections
All TDS sections (192–194T) consolidated into: Sec 392 (salary), Sec 393 (all other payments), Sec 394 (TCS). Rates and thresholds unchanged.
Section codes → Payment codes (1001–1067)
TDS challans and returns now use numeric payment codes instead of section numbers. ERP systems must be updated to map old sections to new codes before filing Q1 returns for Tax Year 2026-27.
24Q/26Q/27Q/27EQ → 138/140/144/143
All quarterly TDS return form numbers have changed. Form 16 → Form 130. Form 16A → Form 131. Form 27D → Form 133. Using old form numbers for TY 2026-27 creates validation errors on TRACES portal.
Manpower supply — TDS now explicit
Supply of manpower/workers is now explicitly included as "work" under ITA 2025. TDS applies at 1% (individual/HUF payee) or 2% (others). If you were not deducting TDS on manpower invoices — correct from 1 April 2026.
2-year correction limit from 1 April 2026
Under ITA 2025 (Section 397(3)), all TDS/TCS return corrections must be filed within 2 years from the end of the Tax Year. TRACES portal enforces this strictly — late corrections are permanently rejected.
TAN not needed for NRI property purchase
Buyers purchasing property from NRIs can now deduct TDS using only their PAN — no TAN registration required. A simplified PAN-based challan replaces the old Form 26QB process for NRI sellers.
TDS & TCS rate chart — Tax Year 2026-27 (ITA 2025)
Rates and thresholds are unchanged — only section numbers and payment codes have changed. Old section references shown for cross-reference only.
| New Section (ITA 2025) | Nature of Payment | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 392(1) Code 1001 | Salary to resident employees | Taxable income after deductions | As per slab | 194C → 192 |
| Sec 393(1) Code 1012 | Payment to contractor (Individual/HUF) | ₹30,000 single / ₹1,00,000 annual | 1% | 194C(1) |
| Sec 393(1) Code 1013 | Payment to contractor (Others — Firms/Cos) | ₹30,000 single / ₹1,00,000 annual | 2% | 194C(2) |
| Sec 393(1) Code 1014 | Manpower supply services (Individual/HUF) — NEW | ₹30,000 single / ₹1,00,000 annual | 1% | 194C (clarified) |
| Sec 393(1) Code 1015 | Manpower supply services (Others) — NEW | ₹30,000 single / ₹1,00,000 annual | 2% | 194C (clarified) |
| Sec 393(1) Code 1041 | Purchase of goods (by specified buyers) | ₹50,00,000 annual | 0.1% | 194Q |
| Sec 393(1) Code 1042 | Purchase of immovable property | ₹50,00,000 | 1% | 194-IA |
| Sec 393(1) Code 1043 | Commission / brokerage | ₹20,000 annual | 5% | 194H |
| New Section (ITA 2025) | Nature of Payment | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 393(1) Code 1005 | Interest from banks / post office (Non-Senior) | ₹50,000 annual | 10% | 194A |
| Sec 393(1) Code 1006 | Interest from banks / post office (Senior 60+) | ₹1,00,000 annual (raised) | 10% | 194A |
| Sec 393(1) Code 1007 | Interest on securities (listed bonds, debentures) | ₹10,000 annual | 10% | 193 |
| Sec 393(1) Code 1025 | Rent on land/building/furniture | ₹50,000/month | 10% | 194-I(b) |
| Sec 393(1) Code 1026 | Rent on plant, machinery & equipment | ₹50,000/month | 2% | 194-I(a) |
| Sec 393(1) Code 1044 | Rent by Individual/HUF not liable to audit | ₹50,000/month | 5% | 194-IB |
| Sec 393(1) Code 1008 | Dividend on shares | ₹10,000 annual | 10% | 194 |
| Sec 393(1) Code 1009 | Partners' remuneration / interest from firm | ₹20,000 annual | 10% | 194T (new) |
| New Section (ITA 2025) | Nature of Payment | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 393(1) Code 1019 | Professional fees (Doctor, CA, Lawyer, Consultant) | ₹50,000 annual | 10% | 194J(a) |
| Sec 393(1) Code 1020 | Technical services (IT, engineering, support) | ₹50,000 annual | 2% | 194J(b) |
| Sec 393(1) Code 1021 | Director fees / sitting fees (not salary) | Any amount | 10% | 194J |
| Sec 393(1) Code 1030 | Royalty to resident | ₹50,000 annual | 10% | 194J(a) |
| Sec 393(1) Code 1031 | Non-compete fees / client non-solicitation | ₹50,000 annual | 10% | 194J |
| Sec 393(1) Code 1035 | Insurance commission | ₹20,000 annual | 5% | 194D |
| Sec 393(1) Code 1036 | Payment to agency (advertisement) | ₹20,000 annual | 2% | 194C / 194J |
| Sec 393(1) Code 1011 | Payment to resident person — No PAN (Sec 206AA) | Any amount | 20% minimum | 206AA |
| New Section (ITA 2025) | Nature of Payment | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 393(2) Code 1051 | Payment to non-resident (other than salary) | Any amount | As DTAA / 30% | 195 |
| Sec 393(1) Code 1045 | Transfer of Virtual Digital Assets (Crypto) | ₹50,000 annual | 1% | 194S |
| Sec 393(3) Code 1060 | Lottery / prize money / horse race winnings | ₹10,000 | 30% | 194B/194BB |
| Sec 393(1) Code 1022 | Perquisites & business benefits to residents | ₹20,000 annual | 10% | 194R |
| Sec 393(1) Code 1028 | Cash withdrawal from bank | ₹1 Cr (filer) / ₹20L (non-filer) | 2% / 5% | 194N |
| Sec 393(1) Code 1046 | Immovable property from NRI seller | Any amount | 20%+ (DTAA) | 195/194-IA |
| Sec 393(1) Code 1029 | EPF withdrawal before 5 years | ₹50,000 | 10% | 192A |
| Sec 393(1) Code 1010 | Mutual fund repurchase / redemption | ₹1,000 annual | 10% | 194F |
| New Section (ITA 2025) | Nature of Collection | Threshold | Rate | Old Section Ref |
|---|---|---|---|---|
| Sec 394(1) Code 1062 | Sale of alcoholic liquor | Any amount | 2% (raised) | 206C(1) |
| Sec 394(1) Code 1063 | Sale of tendu leaves | Any amount | 2% (revised) | 206C(1) |
| Sec 394(1) Code 1064 | Sale of timber / forest produce | Any amount | 2.5% | 206C(1) |
| Sec 394(1) Code 1065 | Sale of scrap / waste | Any amount | 2% (revised) | 206C(1) |
| Sec 394(1) Code 1066 | Sale of motor vehicle (>₹10L) | ₹10,00,000 | 1% | 206C(1F) |
| Sec 394(2) Code 1067 | LRS remittance — education/medical (revised) | ₹7,00,000 | 2% (reduced) | 206C(1G) |
| Sec 394(2) Code 1067 | LRS — overseas tour packages | Any amount | 2% flat (revised) | 206C(1G) |
| Sec 394(1) Code 1061 | Sale of goods by e-commerce operator | ₹5,00,000 annual | 1% | 206C(1H) / 194O |
* Section numbers under ITA 1961 shown for reference only. For Tax Year 2026-27 (payments on/after 1 April 2026), always cite the new ITA 2025 section and payment code. Rates shown are standard rates — higher rates apply when PAN is not available (minimum 20% under Section 206AA). DTAA benefits may reduce rates for NRI payments.
TDS / TCS deposit & return filing due dates
Missing deposit deadlines attracts 1.5%/month interest. Missing return deadlines attracts ₹200/day fee. Know every deadline — and let Taxocount file before all of them.
TDS / TCS Challan Deposit
Tax deducted or collected in any month must be deposited to the government by the 7th of the following month. Government deductors via challan: same 7th rule. Via book entry: same day.
TDS Deposit for March
Special rule for March deductions — deposit due date is 30th April (not 7th May). Applies to non-government deductors. March TDS deposited in May attracts interest from deduction date.
Q1 Return (Apr–Jun) — Form 138/140/143
Quarterly TDS/TCS return for April to June quarter. All deductions, payments, and deductee PAN details must be reported. Late fee: ₹200/day from 1 August.
Q2 Return (Jul–Sep)
TDS/TCS return for July to September quarter. Late fee applies from 1 November. Also the last date for correction statements for TY 2024-25 Q3 and earlier.
Q3 Return (Oct–Dec)
TDS/TCS return for October to December quarter. For property purchase TDS (Form 26QB equivalent), separate challan-cum-statement due within 30 days of the month of deduction.
Q4 Return (Jan–Mar) + Form 130/131
TDS return for January to March quarter. TDS certificates (Form 130 for salary, Form 131 for others) must be issued by 15th June to deductees for the entire year.
* Q4 due date is 31 May — not 31 March. For challan-cum-statement cases (property, rent by individuals, VDA): due date is 30 days from the end of the month of deduction. Taxocount tracks and files every due date for all our clients — zero missed deadlines since inception.
Every TDS / TCS return form — we file them all
All quarterly return form numbers have changed under ITA 2025. Using old form numbers for Tax Year 2026-27 transactions generates TRACES validation errors. We file with the correct forms.
Salary TDS Return
Quarterly return under Section 392 — replaces old Form 24Q. Reports salary paid to employees, TDS deducted, challan details, and employee-wise breakup. Basis for issuing Form 130 (TDS certificate) to employees.
Non-Salary TDS (Residents)
Quarterly return under Section 393(1) — replaces Form 26Q. Covers TDS on contractor payments, rent, professional fees, interest, commission, dividends, and all other resident payments.
Non-Resident TDS Return
Quarterly return under Section 393(2) — replaces Form 27Q. Reports TDS on payments to foreign companies, NRIs, non-residents — royalties, technical fees, interest, dividends under DTAA provisions.
TCS Return
Quarterly return under Section 394 — replaces Form 27EQ. Reports Tax Collected at Source on sale of scrap, alcoholic liquor, motor vehicles, LRS remittances, e-commerce collections, and other TCS items.
Salary TDS Certificate
Annual TDS certificate issued to employees — replaces Form 16. Must be issued by 15 June for the preceding Tax Year. 3-part structure: deductor details, salary computation, and tax details. Required for employee ITR filing.
Non-Salary TDS Certificate
TDS certificate for non-salary deductions — replaces Form 16A. Issued quarterly to vendors, contractors, and professionals within 15 days of the return due date. Essential for deductee's ITR reconciliation with Form 26AS.
End-to-end TDS/TCS compliance — from deduction to certificate
You provide payment details — we handle every step from challan generation to quarterly return filing to TDS certificate issuance.
TDS Rate Identification
For every payment you make — contractor, rent, professional fees, salary, commission — we identify the exact section (392/393/394), payment code (1001–1067), and applicable rate under ITA 2025.
Challan Generation & Payment
Monthly TDS challan preparation and guidance on payment — with correct payment codes, section references, and assessment year mapping to avoid challan mismatches on TRACES.
Quarterly Return Filing
All quarterly TDS/TCS returns (Forms 138/140/143/144) filed on time with correct data — employee details, vendor PAN, deduction amounts, challan mapping, and section codes per ITA 2025.
Form 26AS / AIS Reconciliation
Monthly reconciliation of deposited TDS with TRACES / Form 26AS — ensuring every deduction reflects correctly in your deductees' accounts and preventing credit mismatches.
TDS Certificate Issuance
Form 130 (salary, annual) and Form 131 (non-salary, quarterly) generated and issued to all employees and vendors within the statutory deadline. Digital certificates on WhatsApp/email.
TDS Notice & Default Resolution
Short deduction notices, demand notices for interest, and Section 271H penalties — handled by our TDS experts. We respond, reconcile, and clear defaults with minimum financial impact.
TRACES Correction & Rectification
Wrong PAN, incorrect section codes, challan mismatches, deductee name errors — all correction statements filed on TRACES within the 2-year correction window under ITA 2025.
Lower TDS Certificate (Form 13)
Application to Assessing Officer for lower deduction certificate for vendors / deductees who qualify. Prevents excess TDS deduction and improves vendor cash flow without compliance risk.
The true cost of TDS non-compliance in 2026
TDS defaults are not just fines — they cascade into business disallowances, vendor relationship damage, and prosecution risk. Here's exactly what's at stake.
Interest: Late Deduction
From the date TDS was deductible to the actual date of deduction. Even 1 day delay = 1 full month's interest. On ₹1 lakh — that's ₹1,000 per month, non-deductible as business expense.
Interest: Late Deposit
From the date of deduction to the actual date of deposit. Higher than late deduction rate. Applies even if just 1 day late after the 7th. On ₹5 lakh for 5 months = ₹37,500 in interest alone.
Late Filing Fee — Sec 427
₹200 per day from the return due date to actual filing date. Capped at the TDS amount for that quarter. ₹200 × 76 days = ₹15,200. If TDS was only ₹12,000, you still pay ₹12,000.
Expense Disallowance — Sec 35(b)
30% of the payment amount disallowed as a deductible business expense if TDS was not deducted. On ₹10 lakh contractor payment, ₹3 lakh is added back to taxable income. For NRI payments: 100% disallowed.
Penalty — Sec 271H
Penalty for non-filing of return or filing with incorrect data. Can be levied in addition to the ₹200/day late fee. Triggered by persistent non-filing or substantial data errors.
Prosecution — Sec 276B
Rigorous imprisonment from 3 months to 7 years for willful failure to deposit TDS with the government. Triggered in cases of large defaults, repeated non-compliance, or intentional tax evasion.
TDS / TCS compliance plans
Every plan includes correct ITA 2025 section references, payment codes 1001–1067, all new form numbers, and TRACES reconciliation.
- 1 quarterly TDS return (Form 138 or 140)
- Challan reconciliation
- Form 130 / 131 certificate issuance
- Up to 10 deductee entries per quarter
- ITA 2025 section & payment code mapping
- All quarterly TDS return forms (138 + 140)
- Up to 50 deductee entries per quarter
- Form 26AS / AIS reconciliation monthly
- Form 130 + 131 for all deductees
- TRACES default notice handling (1 notice)
- ITA 2025 payment code mapping
- All 4 quarterly return forms
- TCS return (Form 143) included
- NRI / non-resident TDS (Form 144)
- Unlimited deductee entries
- Unlimited TRACES corrections
- Annual TDS audit & Form 26 support
* Pricing per quarter. Annual plans with additional discount available. Backlog returns charged separately based on number of quarters and entries. Call for exact quote.
Frequently asked questions about TDS / TCS filing
Everything a business owner needs to know about TDS compliance under the new Income Tax Act 2025.
No more TDS defaults.
No more ₹200/day late fees.
Expert TDS/TCS compliance under ITA 2025. All new forms, all new section codes, challan reconciliation, and certificate issuance — managed by Taxocount every quarter.