TDS Compliance Calendar India: Due Dates, Rates and Penalties

TDS is one of those compliance areas where the cost of being wrong compounds quietly. A company that misses one TDS deposit deadline pays interest. A company that misses several starts accumulating penalty exposure that adds up to more than the tax itself. A company that fails to deduct TDS on payments to non-residents ends up with a disallowance under Section 35(b) that increases its taxable income by the full amount of every such payment.

The TDS compliance calendar India exists precisely because the obligations are not singular. They are monthly, quarterly, and transaction-specific all at once. Different payment types have different rates, different forms, and different return cycles. For foreign-owned Indian subsidiaries making payments both to Indian vendors and to foreign parent entities, the TDS obligations run across multiple sections of the Income Tax Act simultaneously.

This blog consolidates the full TDS compliance calendar India into one place.

What Is TDS and Who Is Required to Deduct It in India?

The Income-tax Act, 1961 stands officially repealed as of 1st April 2026. It has been completely replaced by the newly enacted Income-tax Act, 2025.  Under the newly enacted Income-tax Act, 2025, TDS works on a simple principle: tax is collected at the point of payment, not after. Before a company remits a salary, pays a contractor, or transfers fees to a consultant, it deducts a government-specified percentage and deposits it directly with the Income Tax department. Every Indian company carries this obligation — as does any individual or HUF above the prescribed turnover threshold, and any entity making payments to non-residents. The obligation begins from the first such payment, not from registration or profit generation.

The TDS obligation is not limited to large companies. A Private Limited Company making its first salary payment to an employee, or its first vendor payment exceeding Rs. 30,000 (single invoice) for a contracted service, is already a TDS deductor. The Tax Deduction Account Number (TAN) must be obtained before TDS can be deposited, and TAN registration should ideally be done at or shortly after incorporation.

For foreign-owned subsidiaries, the TDS obligation has two distinct dimensions. Resident payments fall under Sections 393 of the Income Tax Act. Non-resident and foreign company payments fall under Section 393(2), which carries different rates, different documentation, and different forms entirely. Both dimensions need to be built into the TDS compliance calendar India from the first payment.

What Are the TDS Rates for Common Payment Types in India?

TDS rates are not uniform. They shift based on what is being paid, who is receiving it, and whether a DTAA rate applies in the case of non-resident recipients. The rates below are the standard domestic rates applicable when no DTAA exemption or lower deduction certificate is in place.

TDS Rates for Payments to Residents

TDS Rates for Payments to Non-Residents (Section 394)

One practical point that matters for companies with Japanese, UAE, or Russian parent entities: the DTAA rate applies only when the foreign recipient furnishes a valid Tax Residency Certificate and Form 41  to the Indian company before the payment is made. Without these documents, the Indian company must deduct at the domestic rate, which in many cases is significantly higher.

What Is the TDS Deposit Deadline and How Is It Calculated?

The deposit deadline is the 7th of the month following deduction. March is treated differently. TDS deducted in March, including on salary payments, must be deposited by April 30.

This is where companies most commonly go wrong. When following the TDS Compliance Calendar India, the deadline is the 7th, not the end of the month. TDS deducted on October 20 is due by November 7. Missing that date triggers interest under Section 398(3)(a)(ii)  at 1.5% per month from the date of deduction to the date of actual deposit. On large payrolls or significant royalty payments, that compounds to meaningful amounts quickly.

TDS is deposited through Challan ITNS 281 on the Income Tax portal or at authorised bank branches. The challan must carry the correct TAN, section code, and assessment year. An error in any of these creates reconciliation mismatches in the deductee’s Form 168 and produces notices that are time-consuming to resolve.

TDS Deposit Deadlines Summary

What Are the Quarterly TDS Return Filing Deadlines?

TDS returns must be filed quarterly. Payments to residents are reported in Form 140 . Payments to non-residents are reported in Form 144 . TDS on salary is reported in Form 138 . The TDS filing deadlines India for returns are July 31, October 31, January 31, and May 31 for the four quarters respectively.

The TDS return is separate from the TDS deposit. Depositing TDS on time does not automatically satisfy the return filing obligation. Both must be done.

Quarterly TDS Return Due Dates

For foreign-owned subsidiaries, the split between Form 140 and Form 144 is not a technicality. Non-resident payments including royalties, management fees, dividends, and technical service fees must go into Form 144. Putting them in Form 140 by mistake generates a mismatch, a notice, and a revised return filing that could have been avoided entirely.

What Each Form Covers

• Form 138: TDS on salaries. Filed quarterly. Generates Form 130  for employees.
• Form 140: TDS on payments to residents other than salary. Generates Form 131 .
• Form 144: TDS on payments to non-residents and foreign companies. Generates Form 131  for non-resident deductees.
• Form 143 : TCS (Tax Collected at Source). Applies to sellers collecting TCS from buyers in specified categories.

What Is the TDS Certificate Issuance Obligation and When Must It Be Done?

After filing the TDS return, the deductor must issue TDS certificates to all deductees within 15 days of the due date of the TDS return. Form 130 is issued to employees for salary TDS. Form 131 is issued for all other TDS including non-resident payments. Form 130 must be issued by June 15 each year for the previous financial year.

The TDS certificate is the document the deductee uses to claim credit for TDS in their own tax return. For non-resident recipients, Form 131 is used to claim credit against their Indian tax liability or as supporting documentation in their home country tax return.

Companies that file returns on time but delay certificate issuance face a penalty of Rs. 100 per day per certificate under Section 467(2)(g) For companies with large workforces or multiple non-resident payees, this penalty can accumulate significantly.

TDS Certificate Issuance Timeline

What Are the Form 145 and 146 Requirements for Foreign Remittances?

Every foreign currency payment to a non-resident requires Form 145 to be filed on the Income Tax portal before the remittance goes out. In specified cases, Form 146 from a Chartered Accountant is also required. Banks will not process the transfer without these forms in place, and they are entirely separate from TDS returns.

Form 145 is the remitter’s own declaration covering the nature of the payment, the TDS deducted, and the rate applied. Form 146 is the CA’s independent certificate confirming those details and assessing the taxability of the payment and any applicable DTAA provisions.

When Form 146 is required and when it is not:

• Form 145 and 146 both required: Payments that are taxable in India and exceed Rs. 5 lakh in aggregate during the financial year
• Form 145 only (no 146 required): Payments not taxable in India, or payments covered under specific exemptions listed in Rule 220  of the Income Tax Rules
• Neither required: Specified categories of payments listed in Rule 220 including imports, advance payments for imports, and certain exempt categories

The consequences of remitting without Form 145 and 146 where required are significant. The bank is obligated to report the transaction to the Income Tax department, and the remitter is liable for the TDS that should have been deducted plus interest and penalty.

What Are the TDS Filing Deadlines in India for Section 394 Specifically?

For payments to non-residents under Section  394, the TDS deposit deadline is the same as for resident payments: the 7th of the following month (April 30 for March). Form 144 must be filed quarterly by the TDS filing deadlines India. Form 145 and  146 must be filed before every foreign remittance. The DTAA rate applies only when a valid TRC and Form  41 are collected before the payment.

Section 394 compliance requires one additional step that resident-only TDS does not: the determination of the applicable rate. Before deducting, the company must confirm:

• Whether the payment is chargeable to tax in India
• Whether the DTAA between India and the payee’s country provides a lower rate
• Whether the foreign entity has furnished a valid Tax Residency Certificate for the current financial year
• Whether Form 41 has been completed and submitted

Deducting at the wrong rate exposes the company to the shortfall plus interest. Not deducting at all on a taxable payment triggers Section 58 which disallows the entire payment as a business expense. For companies paying meaningful royalties or management fees to foreign parents, that disallowance can add crores to Indian taxable income.

What Are the Penalties for Missing TDS Compliance Deadlines?

The penalty structure runs across three levels. Late deposits attract interest. Late returns attract fees. Persistent default attracts prosecution. For foreign-owned subsidiaries, none of these is as damaging as the Section 58 disallowance, which treats the full gross payment as non-deductible the moment TDS on it was missed.

Key penalty provisions:

The Section 427 fee deserves specific attention. At Rs. 200 per day, a TDS return that is 180 days late generates Rs. 36,000 in late fees before any professional fees to file the correction. For companies with multiple deductees and multiple payment types, the aggregate fee on late returns adds up to meaningful amounts.

What Is the Full TDS Compliance Calendar India Month by Month?

The TDS compliance calendar India runs every month without pause. The key monthly obligation is TDS deposit by the 7th. Quarterly obligations are TDS returns by the last day of the month following each quarter end. Annual obligations include Form 130 issuance by June 15 and Form 131 issuance within 15 days of each quarterly return due date.

Conclusion

Deadlines on the TDS compliance calendar India do not flex. The 7th of every month is fixed regardless of what else is happening operationally, and interest starts running from that date the moment a deposit is missed.

Foreign-owned subsidiaries have more to track than purely domestic companies. Section 394 payments to non-resident parents require rate determination before the payment goes out. Every foreign remittance needs Form 145 and 146 in place before the bank will process it. A missed deduction on any of these payments puts the full amount at risk of  58 disallowance during assessment.

CorporateLegit manages the TDS compliance calendar India end to end for private limited companies and foreign-owned subsidiaries, covering monthly deposits, quarterly returns, Section 394 rate determination, Form 145 and 146 filing, and certificate issuance. Reach out to ensure nothing on your TDS filing deadlines India calendar is falling through.