TDS/TCS Rate Chart and Due Dates
A practical TDS and TCS rate chart for Indian businesses covering common sections, thresholds, deposit deadlines, quarterly return due dates, and late payment penalties.
Indian businesses making specified payments must deduct TDS (Tax Deducted at Source), and certain sellers must collect TCS (Tax Collected at Source) - both are advance-tax mechanisms with their own rates, thresholds, and monthly and quarterly deadlines.
Key facts at a glance
- TDS deducted in a month is generally due for deposit by the 7th of the following month; TDS for March is due by 30 April.
- TDS returns are filed quarterly, with the Q4 return typically due by 31 May and earlier quarters due by month-end following the quarter.
- Late deduction and late deposit of TDS both attract monthly interest, calculated separately for each stage of delay.
- Late filing of a TDS return attracts a daily fee under Section 234E, in addition to any interest owed.
- TCS on sale of goods and similar provisions apply to specified categories of sellers and transactions above notified turnover and value thresholds.
- Exact rates and thresholds for individual TDS/TCS sections are revised periodically in the Union Budget - always confirm the current figures before filing.
Common TDS sections businesses deal with
The table below covers the sections that come up most often in day-to-day business payments. Treat the rates and thresholds as a general orientation, not a substitute for checking the current, exact figures before deducting tax, since Budget amendments regularly adjust these numbers.
| Section | Nature of payment | Typical rate | Typical threshold |
|---|---|---|---|
| 192 | Salary | As per employee's income tax slab | Basic exemption limit |
| 194A | Interest (other than on securities) | 10% | Threshold varies, revised periodically |
| 194C | Payments to contractors | 1% (individual/HUF), 2% (others) | Per-transaction and annual aggregate thresholds apply |
| 194H | Commission or brokerage | 5% | Threshold revised periodically |
| 194I | Rent | 10% (land/building/furniture), 2% (plant/machinery) | Annual threshold revised periodically |
| 194J | Professional or technical fees | 10% (professional), 2% (technical services) | Threshold revised periodically |
| 194Q | Purchase of goods | 0.1% on value above threshold | Buyer turnover above Rs 10 crore in preceding year; value above Rs 50 lakh |
TCS on sale of goods and other transactions
Sellers with turnover above a specified level are required to collect TCS on the sale of goods above a notified value threshold in a financial year, at a small percentage of the sale consideration. TCS also applies in specific other contexts, such as certain foreign remittances made under the Liberalised Remittance Scheme and sale of specified goods like scrap or minerals. Because TCS provisions have seen recent changes - including adjustments aimed at avoiding overlap with TDS provisions like Section 194Q - businesses should check the current applicability of any TCS section before assuming last year's treatment still holds.
Deposit and filing due dates
TDS deducted during a month generally has to reach the government by the 7th of the following month. The one exception is TDS deducted in March, which gets extra time and is due by 30 April. On the return side, TDS compliance is quarterly rather than monthly - businesses file Form 24Q for salary TDS and Form 26Q for most other domestic payments, with Form 27Q for payments to non-residents and Form 27EQ for TCS returns. These quarterly returns are typically due by the end of the month following the quarter, except the fourth quarter's return, which usually has until 31 May.
What late payment or late filing actually costs
Two separate consequences apply if TDS compliance slips. First, interest accrues - typically at one rate for the period between when tax should have been deducted and when it actually was deducted, and at a higher rate for the period between deduction and actual deposit with the government. Second, a late filing fee under Section 234E accrues per day for every day a TDS return remains unfiled past its due date, independent of the interest already charged on the underlying tax. On top of these, failing to deduct TDS at all where required can also mean the related business expense gets disallowed when computing income tax, which is often a bigger cost than the interest and fee combined.
Sources
- Income Tax Department - incometax.gov.in
- TRACES (TDS Reconciliation Analysis and Correction Enabling System) - contactable via incometax.gov.in
If you are not sure whether your business is deducting and depositing TDS/TCS correctly across all applicable sections, ComplianceCheck's state-wise compliance assessment gives you a clear picture in a few minutes.
This guide is general information, not legal advice. Requirements vary by state, sector and headcount — confirm specifics with a compliance professional or the relevant authority.
Frequently Asked Questions
- By when must deducted TDS be deposited with the government?
- TDS deducted in a month must generally be deposited by the 7th of the following month, except for TDS deducted in March, which is due by 30 April.
- How often are TDS returns filed?
- TDS returns are filed quarterly using forms such as 24Q for salary and 26Q for other payments, generally due by the end of the month following each quarter, with the Q4 return due by 31 May.
- What is the penalty for late deposit of TDS?
- Interest applies for both late deduction and late deposit of TDS, and a separate late filing fee under Section 234E is charged for each day a TDS return remains unfiled after its due date, in addition to any interest owed.
- What is TCS and how is it different from TDS?
- TDS is deducted by the person making a payment, while TCS is collected by the seller from the buyer at the time of sale for specified categories of goods or transactions, and both are advance tax collection mechanisms credited against the payee's or buyer's final tax liability.
- Do TDS rates and thresholds change often?
- Yes, TDS and TCS rates, thresholds, and applicable sections are revised periodically through the Union Budget and subsequent notifications, so businesses should verify current figures each financial year rather than relying on the previous year's chart.
- What happens if a business fails to deduct TDS where required?
- Failure to deduct TDS where required can result in disallowance of the related expense for income tax purposes, along with interest and penalty on the amount that should have been deducted.
- Is TDS applicable on salary payments?
- Yes, TDS on salary under Section 192 is deducted based on the employee's estimated total income and applicable slab rates for the year, rather than a flat percentage.
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