By CA Surekha Ahuja
April Closed. First TDS Due Date Is Here.
Tax deducted during April 2026 must be deposited by 7 May 2026 by all non-government deductors under Rule 218 of the Income-tax Rules, 2026.
This is the first TDS compliance cycle under the new Income-tax Act, 2025.
The law is simpler.
But compliance is stricter.
TDS now depends on getting five things right:
| Check | Why |
|---|---|
| Section | Legal applicability |
| Threshold | Liability trigger |
| Rate | Correct deduction |
| Form | Correct reporting |
| Due date | Valid compliance |
A mistake in any one can trigger default.
TDS Framework under the New Law
| Section | Coverage |
|---|---|
| 392 | Salary |
| 393(1) | Resident payments |
| 393(2) | Non-resident payments |
| 393(3) | Specified payments |
The structure is simpler.
The responsibility is sharper.
Due Dates to Track
| Compliance | Due Date |
|---|---|
| Regular TDS for April 2026 | 7 May 2026 |
| Form 141 cases | Within 30 days from month-end |
Not every TDS follows the normal monthly route.
Key TDS Rates for Business Payments
| Payment | Threshold | Rate |
|---|---|---|
| Salary | Slab based | As applicable |
| Interest | ₹50,000 / ₹1 lakh | 10% |
| Contracts | ₹30,000 / ₹1 lakh aggregate | 1% / 2% |
| Commission/Brokerage | ₹20,000 | 2% |
| Rent (Plant & Machinery) | ₹50,000 monthly | 2% |
| Professional fees | ₹50,000 | 10% |
| Purchase of goods | ₹50 lakh | 0.10% |
| Benefits/Perquisites | ₹20,000 | 10% |
| Partner payments | ₹20,000 | 10% |
These cover most routine deductions.
Important: Form 141 Is a Separate Compliance Route
Certain transactions require Form 141 (Challan-cum-Statement), where payment and reporting happen together.
Applicable for
| Transaction |
|---|
| Rent by Individual/HUF |
| Property purchase |
| Contractor/professional/commission by Individual/HUF |
| Virtual Digital Asset transfer |
Form 141 is not a simple challan.
It captures:
- deductor details
- deductee details
- PAN
- transaction value
- asset details
- tax deducted
That makes it a transaction-level statutory statement.
Wrong filing can create mismatch and notices.
Correct Form Mapping
| Nature | Form |
|---|---|
| Salary TDS | Form 138 |
| Resident TDS | Form 140 |
| Non-resident TDS | Form 144 |
| TCS | Form 143 |
| Special cases | Form 141 |
Correct deduction with wrong form is still defective compliance.
Conclusion
For April 2026:
| Type | Action |
|---|---|
| Regular TDS | Deposit by 7 May 2026 |
| Form 141 cases | File within 30 days |
The new Income-tax Act, 2025 has simplified TDS law.
But compliance is now more process-driven.
The biggest risks are no longer non-deduction.
They are:
- wrong classification
- wrong form
- wrong due date
The first TDS due date of the year sets the compliance discipline for the year ahead
