Q4 FY 2025-26 TDS and TCS Statements and Certificates: Which Act, Forms and Due Dates Apply
The Income-tax Act, 2025 came into force on 1 April 2026, but the TDS and TCS statements and certificates for January to March 2026 fall due after that date. This post sets out which Act, which forms and which due dates apply to them, based on Section 536 of the Income-tax Act, 2025, Topics 2 and 6 of the CBDT “FAQs on Interplay and Transition from the Income Tax Act, 1961 to the Income Tax Act, 2025” (updated 2 April 2026) and the Income-tax Rules, 1962, as they stood on 12 May 2026.
Key Takeaways
- Where the payment or credit (whichever is earlier) happened on or before 31 March 2026, TDS is governed by the Income-tax Act, 1961. For TCS, the test is the debit or receipt on or before 31 March 2026 (CBDT FAQ Q6.1 and Q6.21).
- Q4 FY 2025-26 TDS statements in Forms 24Q, 26Q and 27Q are due by 31 May 2026 under Rule 31A. The TCS statement in Form 27EQ is due by 15 May 2026 under Rule 31AA, not 31 May.
- Form 16 and the Q4 Form 16A are due by 15 June 2026. The Q4 TCS certificate in Form 27D is due by 30 May 2026.
- A late statement attracts a fee of Rs 200 a day under Section 234E, capped at the tax deductible or collectible, and may attract a penalty of Rs 10,000 to Rs 1,00,000 under Section 271H. A late certificate can attract a penalty of Rs 500 a day under Section 272A(2)(g).
- The new forms under the Income-tax Rules, 2026 (Forms 138, 140, 143 and 144 for statements, and Forms 130, 131 and 133 for certificates) apply where the credit or payment is on or after 1 April 2026. They are not used for Q4 FY 2025-26.
Which Act Governs a January to March 2026 Deduction
The CBDT FAQ applies the same trigger as the 1961 Act: the earlier of credit or payment (Q2.6). If that event happened on or before 31 March 2026, the 1961 Act applies. If it happened on or after 1 April 2026, the Income-tax Act, 2025 applies (FAQ Q2.4 and Q6.1). The FAQ gives these examples:
- Professional fees credited in the books in March 2026 and paid in April 2026: the 1961 Act applies and TDS must be deducted in March 2026 (Q6.1).
- An advance paid in March 2026 and credited in the books in April 2026: again the 1961 Act applies (Q6.1).
- Salary for March 2026 paid on 31 March 2026 falls under Section 192 of the 1961 Act. Salary for April 2026 paid on 30 April 2026 falls under the 2025 Act, because salary TDS is deducted at the time of payment (Q6.22).
- If tax was deducted on credit in March 2026, no second deduction is needed when the same sum is paid in April 2026 (Q2.10).
The legal basis is the saving provision. Section 536(1) of the Income-tax Act, 2025 repeals the 1961 Act. Section 536(2)(b) provides that the repeal does not affect “any right, privilege, obligation or liability acquired, accrued or incurred under the repealed Income-tax Act”. For deductions and collections made up to 31 March 2026, the duty to file a statement under Section 200(3) or the proviso to Section 206C(3), and to issue a certificate under Section 203 or Section 206C(5), arose under the 1961 Act. Section 536(2)(d) allows a penalty proceeding for any tax year beginning before 1 April 2026 to be initiated, and the penalty imposed, under the repealed Act. The FAQ relies on Section 536(2)(c) and (d) for assessee-in-default proceedings on pre-April 2026 deductions (Q6.17).
Q4 FY 2025-26 Statements: Forms and Due Dates
The FAQ confirms that the Q4 FY 2025-26 statements are filed under the 1961 Act in the old forms (Q6.10). The forms and due dates come from the Income-tax Rules, 1962:
| Form | What it covers | Rule | Due date for Q4 FY 2025-26 |
|---|---|---|---|
| 24Q | TDS on salary under Section 192 (and Section 194P) | 31A(1)(a), 31A(2) | 31 May 2026 |
| 26Q | TDS under Sections 193 to 196D for deductees not covered by Form 27Q | 31A(1)(b)(ii), 31A(2) | 31 May 2026 |
| 27Q | TDS under Sections 193 to 196D where the deductee is a non-resident (not a company), a foreign company or a resident but not ordinarily resident | 31A(1)(b)(i), 31A(2) | 31 May 2026 |
| 27EQ | TCS under Section 206C | 31AA(1), 31AA(2) | 15 May 2026 |
| 26QB, 26QC, 26QD, 26QE | Challan-cum-statements for Sections 194-IA, 194-IB, 194M and 194S | 31A(4A) to (4D) | 30 days from the end of the month of deduction (30 April 2026 for March 2026 deductions) |
The table in FAQ Q6.10 lists Form 27EQ together with Forms 24Q, 26Q and 27Q against 31 May 2026. Rule 31AA(2) sets the due date for the quarter ending 31 March as 15 May of the following financial year, so the Q4 FY 2025-26 Form 27EQ is due by 15 May 2026. FAQ Q6.11 confirms that the old challan-cum-statement forms continue for transactions where credit or payment happened on or before 31 March 2026.
Q4 statements carry the 1961 Act section references, such as Section 194C for a March 2026 contract payment (FAQ Q6.2). Section 393 of the 2025 Act is quoted only for transactions on or after 1 April 2026 (Q2.5). The FAQ states that the return preparation utility and the TRACES portal will support old-format returns for periods up to March 2026 and new-format returns from April 2026 (Q6.12).
Deposit of Tax Deducted in March 2026
Section 200(3) requires the statement to be prepared after the tax deducted has been paid to the credit of the Central Government. Under Rule 30(2)(a), a non-government deductor had to deposit tax on sums credited or paid in March 2026 by 30 April 2026. A government office paying by challan had to deposit by 7 April 2026, and on the same day where no challan is used (Rule 30(1); FAQ Q2.8). Tax deducted before 1 April 2026 is deposited using the challans and payment codes of the 1961 Act (Q2.9).
If the deposit was late, Section 201(1A)(ii) charges simple interest at 1.5% for every month or part of a month from the date of deduction to the date of payment, and that interest must be paid before the statement is filed (FAQ Q6.9).
Q4 FY 2025-26 Certificates
| Certificate | Rule | Due date |
|---|---|---|
| Form 16 (salary, annual) | 31(1)(a), 31(3) | 15 June 2026 |
| Form 16A (other TDS, Q4) | 31(1)(b), 31(3): 15 days from the Form 26Q or 27Q due date | 15 June 2026 |
| Form 27D (TCS, Q4) | 37D(3): 15 days from the Form 27EQ due date | 30 May 2026 |
| Forms 16B, 16C, 16D, 16E | 31(3A) to (3D): 15 days from the challan-cum-statement due date | 15 May 2026 for March 2026 deductions |
FAQ Q6.15 confirms that Form 16 for FY 2025-26 and Form 16A for January to March 2026 are issued under the 1961 Act. Each certificate must carry the receipt number of the relevant quarterly statement (Rule 31(2)(d) and Rule 37D(2)(d)), so the certificate follows the statement. For a late certificate, FAQ Q6.16 applies Section 272A(2)(g) of the 1961 Act: Rs 500 for every day the failure continues, which under the first proviso to Section 272A(2) cannot exceed the tax deductible or collectible.
Fee and Penalty for Late or Incorrect Statements
- Section 234E fee: Rs 200 for every day the failure continues, not exceeding the tax deductible or collectible. The fee must be paid before the statement is filed (Section 234E(2) and (3)).
- Section 271H penalty: the Assessing Officer may levy Rs 10,000 to Rs 1,00,000 for a late statement or for incorrect information in a statement. For late filing, no penalty is levied if the tax, fee and interest are paid and the statement is filed within one month from the due date (Section 271H(3)). This window was one year until it was cut to one month with effect from 1 April 2025.
Illustration 1 (Form 27EQ): a collector treats 31 May as the TCS due date and files the Q4 Form 27EQ on 31 May 2026. The due date was 15 May 2026, so the failure runs from 16 May to 31 May, which is 16 days. The fee is 16 x Rs 200 = Rs 3,200, subject to the cap of the tax collectible.
Illustration 2 (Form 26Q): a deductor whose Q4 TDS is Rs 30,000 files Form 26Q on 20 June 2026. The failure runs from 1 June to 20 June, which is 20 days, so the fee is 20 x Rs 200 = Rs 4,000, below the Rs 30,000 cap. If the tax, fee and interest are paid before filing, the statement is within one month of the due date and Section 271H(3) bars the late-filing penalty.
Corrections After 1 April 2026
Correction statements for any quarter of FY 2025-26 or earlier are filed under the 1961 Act framework, in the old form numbers and formats, even when filed after 1 April 2026 (FAQ Q6.10 note and Q6.14). The first proviso to Section 200(3) is the provision that allows a correction statement to rectify a mistake or to add, delete or update information.
What Changes From 1 April 2026
The Income-tax Rules, 2026 (G.S.R. 198(E), dated 20 March 2026) came into force on 1 April 2026. For deductions and collections under Sections 392, 393 and 394 of the Income-tax Act, 2025, Rule 219(1) prescribes Form 138 for salary, Form 140 for other resident deductees, Form 144 for non-resident deductees and Form 143 for TCS. Rule 219(4) makes the statement for the quarter ending 30 June due by 31 July. Under Rule 215, the certificates are Form 130 (salary), Form 131 (other TDS) and Form 133 (TCS), and Form 141 replaces the four old challan-cum-statements (FAQ Q6.11). The first new-form statements are for April to June 2026, due by 31 July 2026, and the first Form 131 is due by 15 August 2026 (FAQ Q6.10 and Q6.15). None of these apply to Q4 FY 2025-26.
Common Mistakes to Avoid
- Working to 31 May 2026 for Form 27EQ. The Q4 TCS due date is 15 May 2026.
- Letting an ERP or payroll system updated in April 2026 map March 2026 deductions to Section 393 codes, or map April 2026 deductions to old codes. The FAQ warns that wrong section references can cause processing errors and require a correction statement (Q6.4).
- Deducting tax again in April 2026 on a sum already subjected to TDS on credit in March 2026 (Q2.10).
- Selecting Tax Year 2026-27 instead of Assessment Year 2026-27 for a payment that relates to FY 2025-26. The FAQ lists wrong AY or TY selection on the challan or statement as a source of credit mismatches (Q2.23 and Q6.29).
Frequently Asked Questions
Tax was deducted in March 2026 at a lower rate under a Section 197 certificate valid up to 31 March 2026, but deposited in April. Is the lower rate still valid?
Yes. Where the payment or credit happened on or before 31 March 2026, the 1961 Act and the certificate issued under it continue to apply even if the tax is deposited after 31 March 2026 (FAQ Q2.11).
How does a deductee claim credit for TDS deducted in March 2026?
Tax deducted on income of FY 2025-26 appears in the Annual Information Statement for AY 2026-27, with the old section numbers, and is claimed in the AY 2026-27 return filed under the 1961 Act (FAQ Q6.25). Credit is given against AY 2026-27 even if the deductor deposited the tax after 1 April 2026, provided the Q4 statement is filed correctly (Q6.26).
A deductor deducted excess TDS in FY 2025-26. How is the refund claimed?
The FAQ states that a deductor’s refund claim for excess deduction under the old Act is filed in Form 26B of the Income-tax Rules, 1962 and processed under the 1961 Act, within 2 years from the end of the financial year in which the tax was deductible (Q2.31). Rule 31A(3A) prescribes Form 26B for this claim.
Related Posts
- ITR forms for AY 2026-27: why FY 2025-26 returns are filed under the 1961 Act
- Reopening pre-April 2026 years: how Sections 147 to 151 continue under Section 536(2)(c)
Need a Review of Your TDS Transition Position?
If you deduct or collect tax at source and are finalising Q4 FY 2025-26 statements, certificates or corrections, and want the forms, due dates and section references reviewed, talk to an expert from the Tax Update India team.
Sources: Income-tax Act, 2025, Section 536 (as amended by the Finance Act, 2026); Income-tax Act, 1961, Sections 200, 201, 203, 206C, 234E, 271H and 272A (as amended by the Finance Act, 2026); Income-tax Rules, 1962, Rules 30, 31, 31A, 31AA and 37D; Income-tax Rules, 2026, Rules 215 and 219; CBDT, FAQs on Interplay and Transition from the Income Tax Act, 1961 to the Income Tax Act, 2025 (updated 2 April 2026), Topics 2 and 6.
Disclaimer: This article is for general information only and does not constitute legal or tax advice. Tax positions depend on the facts of each case. Section numbers refer to the Income-tax Act, 1961 unless otherwise stated. Consult a qualified professional before acting on any information here.