Tax & corporate
TDS compliance services
Late TDS brings interest by the month, fees by the day and, for tax deducted and kept, prosecution. We deposit TDS by the 7th, file your quarterly statements and issue Form 130 and 131 certificates from TRACES.
- Zero interest, fees or penalties
- Tax deposited by the 7th
- Quarterly Form 138 and 140 statements
- Form 130 and 131 certificates
Scope of service
Every month and every quarter
Deduction and deposit run with your payroll each month. Statements, certificates and corrections follow each quarter.
- File01
Monthly deduction and deposit
Worked out alongside payroll and payables.
- TDS on salaries worked out for each employee
- TDS on payments to resident vendors, such as professional fees, commission, brokerage and rent
- Tax deposited by the 7th of the following month, and by 30 April for March
- Deposits reconciled with the tax deducted
- File02
Quarterly statements
Filed on the e-filing portal, under the right Act for the period.
- Form 138 (earlier Form 24Q) for tax deducted from salaries
- Form 140 (earlier Form 26Q) for non-salary payments to residents
- The earlier forms used for periods up to 31 March 2026
- File03
TDS certificates
Downloaded from TRACES, never prepared by hand.
- Form 130 (earlier Form 16) for employees, once a year
- Form 131 (earlier Form 16A) for other payees, every quarter
- Certificates downloaded from TRACES once the statement is processed
- File04
Corrections
When a filed statement turns out to be wrong.
- Correction statements for wrong amounts, PANs or section references
- Corrected certificates issued once the revised statement is processed
The TDS year
Four quarters, twelve deposits
Tax deducted in a month is deposited by the 7th of the next month, except March, which has until 30 April. Each quarter then closes with a statement: Form 138 for salaries and Form 140 for other payments to residents.
Q1
April to June
- Deposit
- By 7 May, 7 June and 7 July
- Quarterly statement
- 31 July
Q2
July to September
- Deposit
- By 7 August, 7 September and 7 October
- Quarterly statement
- 31 October
Q3
CurrentOctober to December
- Deposit
- By 7 November, 7 December and 7 January
- Quarterly statement
- 31 January
Q4
January to March
- Deposit
- By 7 February and 7 March, and March's tax by 30 April
- Quarterly statement
- 31 May, after the year ends
Dates for non-government deductors, from the Income Tax Department's Form 138 and Form 140 user manuals and its tax payment FAQs. The Income-tax Rules, 2026 keep the deposit timelines of the earlier rules.
The cost of non-compliance
What a late deposit or statement costs
TDS defaults are charged by the month and the day under the Income-tax Act, 2025, and a deductor who fails to pay becomes an assessee in default.
Exposure under the law
Source
1.5% a month
from deduction to payment
01Interest on TDS paid late
Tax deducted but paid late carries 1.5% a month or part of a month. Tax not deducted at all carries 1% a month until it is deducted.
Income-tax Act, 2025, s.398(3)
₹200 a day
up to the TDS amount
02Late fee on statements
For each day a quarterly TDS statement is late, paid before the statement can be filed.
Income-tax Act, 2025, s.427
₹10,000–1 lakh
per statement
03Penalty for late or wrong statements
For a statement not filed in time, or filed with incorrect information. It is not levied if the tax, fee and interest are paid and the statement is filed within a month of the due date.
Income-tax Act, 2025, s.461
30%
of the payment, disallowed
04Expense disallowed
A payment to a resident on which tax was not deducted, or not paid by the return due date, loses 30% of its deduction for the year.
Income-tax Act, 2025, s.35(b)(i)
3 months–7 years
rigorous imprisonment
05TDS deducted and not paid
Failing to pay tax deducted at source to the Government can be prosecuted, with a fine.
Income-tax Act, 2025, s.476(1)
Why NK One
Every filing, zero penalties.
Every TDS deposit we handle is made by the 7th and every statement filed by its due date, so no interest, fee or penalty is added.
Zero-penalty guarantee
No late fees, no interest, no surprise demands on anything we file for you. Every due date is tracked by people who have done this for 20 years.
Direct partner access
Since 2007, clients speak to the partners who run NK One, not a new compliance executive learning on your account.
The Income-tax Act, 2025
What changed on 1 April 2026
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. For TDS, the policy is broadly the same, but section numbers, form numbers and terms are new, and payroll and accounting systems need updating.
New sections, same rates
TDS sections 192 to 194T of the 1961 Act are now consolidated in sections 392 and 393. Forms 24Q, 26Q and 27Q are now Forms 138, 140 and 144. The Department has said TDS rates and thresholds remain largely the same.
Which Act applies
It turns on the earlier of payment or credit. If that falls on or before 31 March 2026, the 1961 Act governs, even if the tax is deposited later. From 1 April 2026, the 2025 Act does.
Salary in the transition year
TDS on salary is deducted on payment, so March salary paid on 31 March 2026 stays under the old Act. From April, the computation restarts for tax year 2026-27, with deductions under their new section numbers.
Old periods, old forms
Corrections for periods up to March 2026 are filed in the old forms. The window is two years from the end of the tax year in which the original statement was due. The e-filing portal keeps these forms under a separate tab.
Common mistakes
Five TDS mistakes that cost interest or credit
Each of these turns up later as interest, a disallowed expense or a payee whose credit is missing.
Mistake 01 of 05
Depositing March's tax late
Tax deducted in March is due by 30 April. Deposit it in May and interest runs at 1.5% a month from the date of deduction to the date of payment.
How we prevent it
Challans are prepared before the 7th each month, and before 30 April for March.
FAQ
Questions about TDS compliance
Can't find your answer? Ask us on WhatsApp and we'll reply within 2 working hours.
When must TDS be deposited?
Tax deducted in a month is generally deposited by the 7th of the following month. Non-government deductors have until 30 April for tax deducted in March. The Income Tax Department has confirmed that the Income-tax Rules, 2026 keep these timelines unchanged.
What are the due dates for quarterly TDS statements?
Form 138 and Form 140 are due by 31 July for April to June, 31 October for July to September, and 31 January for October to December. The statement for January to March is due by 31 May.
What happened to Forms 24Q, 26Q, 16 and 16A?
They were renumbered under the Income-tax Act, 2025 from 1 April 2026. The salary statement is now Form 138 and the statement for other payments to residents is Form 140. The certificates are Form 130 and 131 (earlier Form 16 and 16A). Periods governed by the 1961 Act are still filed in the earlier forms.
Can we prepare Form 130 or Form 131 ourselves?
No. Under CBDT Circular 04/2013, TDS certificates must be downloaded from TRACES, and they cannot be edited. Form 131 is due within 15 days of the statement's due date for the quarter, and Form 130 by 15 June after the tax year.
How is a mistake in a filed TDS statement corrected?
The deductor files a correction statement. For periods up to March 2026, corrections go in the old forms, within two years from the end of the tax year in which the statement was due. Once the correction is processed, corrected certificates can be downloaded from TRACES.
Which Act applies to a payment made around 1 April 2026?
The Act in force on the earlier of the payment or the credit in your books. A professional fee credited in March 2026 and paid in April falls under the 1961 Act. A payment or credit on or after 1 April 2026 falls under the 2025 Act.
What interest applies when TDS is late?
Interest is 1% a month for failing to deduct, from the date tax was deductible to the date it is deducted. It is 1.5% a month for failing to deposit, from the date of deduction to the date of payment. The rates are the same under the 2025 Act as under the old one.
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Enquiry
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- Call+91 98457 40938
- WhatsApp+91 98457 40938
- Emailinfo@nkonehrsolutions.com
- Head office, Bengaluru1163, 9th Main, 11th A Cross, Nagapura, Mahalakshmipuram, near Rajajinagar Metro Station, Rajajinagar 1st Block, Bengaluru, Karnataka 560086
