The due date for depositing Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) for June 2026 is July 7, 2026. However, government offices must remit the tax to the Central Government on the same day of deduction/collection if payment is made without an Income-tax Challan.

TDS/TCS Deposit Due Date – June 2026

Key Deadline

·         July 7, 2026 (Monday):

o    All deductors/collectors (non-government): Deposit TDS/TCS for June 2026.

o    Government offices: Deposit tax same day if paid without challan.

o    Quarterly deposit option: Deductors permitted by the Assessing Officer under Section 392(1) or 393(1) must also deposit TDS for April–June 2026 by this date.

Relevant Provisions

·         Section 393 & Section 394 of the Income-tax Act, 2025 govern the timelines for deposit of TDS/TCS.

·         Government deductors: Must remit tax immediately to the Central Government’s account without challan.

·         Non-government deductors: Must deposit by the 7th of the following month (July 6, 2026 for June deductions).

Compliance Checklist for Deductors

·         Verify deductions/collections made during June 2026.

·         Ensure timely deposit by July 6, 2026 (or same day for government offices without challan).

·         Quarterly filers: Confirm AO approval for quarterly deposit before relying on extended timelines.

·         Maintain records: Keep challans, payment proofs, and declarations (Form 127, Form 121) updated.

Consequences of Delay

·         Interest under Section 401 of the Income-tax Act, 2025 for late deposit.

·         Penalties under Section 405 for non-compliance.

·         Disallowance of expenses under Section 37 if TDS is not deposited on time.

Practical Guidance

·         Businesses should schedule deposits in advance to avoid last-minute delays.

·         Government offices must set up internal controls to ensure same-day remittance.

·         Tax professionals should remind clients of this critical compliance date to avoid penalties.

Conclusion

The July 6, 2026 deadline is crucial for all deductors and collectors. Government offices have stricter compliance requirements with same-day deposit obligations. Timely action ensures smooth compliance and avoids penalties.