Second Advance Tax, TDS, and GST Deadlines: India’s September 2026 Compliance

September 2026 brings several important tax and regulatory deadlines for businesses, investors, employers, and other taxpayers in India. This period is particularly important for taxpayers liable to pay advance tax, businesses subject to tax audit, and entities responsible for deducting or collecting tax at source.

The September compliance calendar also includes goods and services tax (GST), payroll, and corporate filing obligations that businesses should account for alongside their income tax requirements. With the Income Tax Act 2025 now applying to Tax Year (TY) 2026-27, taxpayers should also ensure that they use the appropriate provisions, forms, and payment mechanisms for the relevant tax period. Advance tax relating to TY 2026–27 will be governed by the Income Tax Act 2025.

Key income tax deadlines in September 2026

The dates above represent the principal direct tax deadlines relevant to businesses and investors during September. Other statutory obligations may apply depending on the taxpayer’s activities, transaction profile, and organisational structure.

7 September: TDS and TCS payment for August 2026

Businesses and other persons responsible for deducting or collecting tax must deposit the tax deducted at source (TDS) or tax collected at source (TCS) relating to August 2026 by 7 September 2026, subject to the applicable rules.

This obligation can cover payments such as salaries, professional fees, contractual payments, rent, interest, commission, and other transactions on which tax is required to be deducted or collected. Businesses should reconcile the amounts deducted or collected with their accounting records before making the payment.

15 September: Second advance tax instalment for TY 2026–27

15 September is an essential income tax payment deadline for many businesses and investors.

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Taxpayers whose estimated annual tax liability, after reducing applicable TDS and TCS, exceeds the prescribed threshold are generally required to pay advance tax. For TY 2026-27, the second instalment is due on 15 September 2026.

By this date, taxpayers should have paid at least 45 per cent of their estimated annual advance tax liability cumulatively, after accounting for the first instalment paid in June.

Who should review the September advance tax liability?

The September instalment is particularly relevant to:

1. Companies and other businesses with taxable profits
2. Partnerships and limited liability partnerships (LLPs)
3. Professionals carrying on business or professional activities
4. Individuals earning significant business or investment income
5. Investors receiving taxable capital gains, interest, dividends, rental income, or other income not fully covered by TDS or TCS
6. Taxpayers whose income has increased materially during the year.

Businesses should reassess their projected taxable income before 15 September rather than simply repeating the amount paid in June. Changes in revenue, profitability, capital gains, deductions, withholding credits, or other taxable income can alter the required instalment.

Failure to pay or underpaying advance tax can result in interest consequences under the applicable provisions of the Income Tax Act, 2025. The advance tax framework for TY 2026–27 is specifically governed by the new income tax act.

30 September: Tax audit report for FY 2025-26

Businesses and professionals that were required to have their accounts audited for FY 2025-26 should track 30 September 2026 as the tax audit report deadline, subject to the applicable provisions and any extension notified by the authorities.

The tax audit requirement is separate from the income tax return filing deadline. Businesses should therefore complete the audit and furnish the applicable audit report by the specified date even where the income tax return itself is due later.

For taxpayers subject to audit, the subsequent income tax return deadline generally falls in October. Taxpayers with specified international or transfer pricing transactions may be subject to a later return-filing deadline.

30 September: TDS on specified transactions

Taxpayers making certain specified payments may also have a 30 September deadline for furnishing the applicable challan-cum-statement and depositing the corresponding TDS.

These transactions can include:

1. Purchase of immovable property
2. Rent paid by specified persons
3. Certain payments by individuals or Hindu undivided family (HUFs) to contractors or professionals
4. Transfer of virtual digital assets

For TY 2026-27, the IT Department has moved specified TDS reporting into the statutory framework under the Income Tax Act 2025. Businesses and investors should therefore verify the applicable form rather than automatically relying on the form numbers used under the Income Tax Act 1961.

GST and payroll deadlines to track alongside income tax

September also contains several recurring indirect tax and payroll obligations. Businesses should coordinate these with their direct tax compliance calendar to avoid separate filing and payment delays.

EPF contributions and the related electronic challan-cum-return for August are generally due by 15 September.

The GST deadlines can vary depending on the taxpayer’s filing category, state, and applicable GST provisions. Businesses should therefore verify the applicable return and payment date before filing.

September compliance considerations for foreign investors

Foreign investors and foreign-owned businesses operating in India should not view September only as a domestic tax-payment month. The advance tax calculation, withholding obligations, and tax audit requirements can interact with cross-border transactions.

Particular attention may be required for:

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• Payments to non-resident group companies and overseas service providers
• Royalty, interest, technical service, and other cross-border payments
• Transfer pricing adjustments and related-party transactions
• Capital gains arising from Indian investments
• TDS or TCS obligations on transactions involving Indian assets
• Reconciliation of tax deducted at source with available tax credits
• Tax audit and transfer pricing documentation requirements

For businesses with significant cross-border transactions, September is also an appropriate point to review whether projected taxable income and related tax payments remain aligned with the company’s financial forecasts.

Planning ahead of the September 2026 tax deadlines

The September deadlines require more than simply making payments on the due date. Businesses should reconcile their accounting records, update projected taxable income, verify TDS/TCS credits, and assess whether their advance tax position remains adequate.

For investors, changes in capital gains, dividend income, interest income, rental income, or other taxable receipts can affect the advance tax calculation. For foreign-owned businesses, cross-border payments and related-party transactions should be reviewed alongside withholding tax and transfer pricing considerations.

The transition to the Income Tax Act 2025 also makes it important to distinguish obligations relating to FY 2025-26 from those relating to TY 2026-27. The IT department has confirmed that payments relating to TY 2026-27 are to be made under the new Act, while payments relating to periods up to FY 2025–26 continue to be handled under the Income Tax Act 1961.

Businesses and investors should verify the applicable statutory provisions and any subsequent government extensions or changes before acting on a deadline.

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