TDS, TCS, and Annual Filings for FY 2025-26: India’s Tax Compliance Deadlines for April & May 2026

The opening months of FY 2026-27 mark a critical phase in India’s tax compliance cycle, as a new tax framework comes into force from April 1, 2026. April and May, in particular, require close attention, as businesses and investors must simultaneously conclude compliance obligations for the previous financial year while beginning to align with new reporting requirements for current transactions.

Given this overlap, tracking key deadlines during this period is essential to ensure timely filings, avoid penalties, and enable a smooth transition to the updated tax regime.

The start of FY 2026–27 marks an important compliance cycle for taxpayers in India, particularly with the transition to the Income-tax Act, 2025. Businesses, financial institutions, and specified entities must align with a range of reporting requirements, tax-deducted at source (TDS) and tax-collected at source (TCS) obligations, and statutory filings within prescribed timelines.

In this article, India Briefing presents a clear and structured overview of key compliance deadlines for April and May 2026, along with practical guidance to navigate the transition phase effectively.

April 2026: Investment reporting requirements

April 30– Quarterly intimation

Foreign investors claiming tax exemption under Section 10(23FE) of the Income-tax Act, 1961, primarily pension funds and sovereign wealth funds, are required to submit quarterly intimations for investments made in India during the quarter ending March 31, 2026.

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Intimation by pension funds

Notified pension funds must report:

1. Investment details (date, amount, and type)
2. Nature of returns (interest, dividend, etc.)
3. Details of the Indian investee entity (company, trust, AIF, etc.)

Intimation by Sovereign Wealth Funds (SWF)

Sovereign wealth funds are required to file a similar statement, subject to conditions such as:

1. Being government-owned and regulated
2. Not participating in day-to-day operations of the investee
3. Complying with prescribed investment norms

Why this compliance is important

These filings are mandatory to retain tax exemption benefits. These filings help authorities monitor foreign investments, and the applicant must submit them by April 30, 2026 (within one month of quarter-end).

May 2026: TDS, TCS, and reporting deadlines

May is a high-compliance month, involving monthly tax deposits, quarterly returns, certificate issuance, and multiple reporting obligations.

May 7– Monthly TDS/TCS deposit

• Deposit TDS/TCS for April 2026
• Submit declaration under Section 394(2) (for transactions without TCS, where applicable)

May 15– Certificates and quarterly TCS filing

TDS/TCS compliance

1. Issue TDS certificates for March 2026 (for specified transactions such as property, rent, and certain payments)
2. Submit quarterly TCS return for Q4 (Jan-March 2026)

Other reporting includes stock exchanges and recognized associations must report client code modifications for April 2026

May 30– TCS certificates and financial reporting

• Issue TCS certificates for Q4 of FY 2025-26
• Furnish statement under Section 285B for FY 2025-26

May 31– Other key compliance deadline

This is one of the most important compliance dates, covering multiple filings such as the following:

1. TDS/TCS filings

• File quarterly TDS return for Q4 (January-March 2026)
• Submit returns relating to superannuation fund contributions

2. Other important filings (prescribed under the Income-tax Act, 1961)

1. Form 61B – Reporting of financial accounts (for financial institutions)
2. Form 61A – Statement of financial transactions (SFT)
3. Form 9A – Option to defer application of income (for trusts)
4. Form 10 – Accumulation of income for future use
5. Form 10BE – Donation certificates issued to donors
6. PAN application – Where required based on income threshold
7. CA certificate – For investments in zero-coupon bonds

It must be noted that May 2026 is a transition month—not a full switch to new forms. This means that old tax forms continue for FY 2025-26 reporting. 

New law applies only to transactions from April 1, 2026, onward. Full migration to new forms will align with future return cycles (Q1 FY 2026-27 onwards).

CLICK HERE: Key Forms Relevant to Taxpayers and Businesses

Transition to the Income-tax Act, 2025: What taxpayers should know

While certain compliance obligations for FY 2025–26 will continue to be governed by the Income-tax Act, 1961, a new tax framework has come into effect from April 1, 2026 under the Income-tax Act, 2025. Taxpayers should therefore take note of the following key changes:

Updated section references

For transactions from April 1, 2026:

• TDS must be reported under Section 393
• TCS must be reported under Section 394

Older section references (such as Sections 194C, 194J, etc.) should no longer be used for new transactions, as this may lead to filing errors.

No change in deposit timelines

The timelines for depositing TDS and TCS remain unchanged in India. It must generally be deposited by the 7th of the following month. For March deductions, the due date remains April 30 (for non-government deductors).

Treatment of pre-April 2026 transactions

Transactions completed on or before March 31, 2026, will continue to be governed by the earlier law, i.e., existing provisions and challans under the Income-tax Act, 1961 remain applicable.

Validity of lower or nil deduction certificates

Certificates issued under earlier provisions remain valid for the FY 2026-27, where applicable to projected income. They do not require re-issuance solely due to the transition.

Practical compliance approach for businesses

To manage tax obligations efficiently in FY 2026-27, companies should adopt a structured, process-driven compliance framework that aligns with monthly, quarterly, and annual requirements.

1. Monthly compliance (execution stage)

1. Identify transactions liable for TDS/TCS at the time of payment or credit
2. Deduct or collect tax at the applicable rate
3. Ensure timely deposit with the government, generally by the 7th of the following month
4. Maintain proper documentation and reconciliation of challans

2. Quarterly compliance (reporting stage)

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1. File TDS and TCS returns within prescribed deadlines
2. Verify accuracy of data (PAN, amounts, challan details) before submission
3. Issue TDS/TCS certificates to deductees and collectees within timelines
4. Address mismatches or errors through timely corrections

3. Annual compliance (review and closure stage)

1. Conduct a year-end reconciliation of TDS/TCS with books of accounts
2. Ensure all statutory filings (returns, statements, certificates) are completed
3. Review compliance gaps and rectify discrepancies, if any

Maintain audit-ready documentation for assessments or regulatory review

Conclusion

The April-May compliance calendar in FY 2026-27 reflects a transition-intensive and deadline-driven period, with April focused on investment disclosures and May involving extensive TDS/TCS and reporting obligations.

For businesses, the key to effective compliance lies in establishing a disciplined internal process, tracking deadlines, ensuring accurate deductions, and maintaining robust documentation. A proactive approach can help companies avoid penalties and enable a smooth transition to the Income-tax Act, 2025 framework, while ensuring ongoing regulatory alignment.

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