If you deducted TDS or collected TCS during October 2026, the TDS and TCS deposit is usually due by 7 November 2026. Depositing on time keeps interest away and protects your expense claims, so it is worth planning the payment in the first week of the month. This guide walks you through what to deposit, how to pay and what a late payment costs.
The 7 November date is the statutory default for tax deducted or collected in October. Extensions by the CBDT do happen, so check the official portal at incometax.gov.in before you rely on any date.
Who needs to make the TDS and TCS deposit by 7 November
TDS (tax deducted at source) applies when you pay certain amounts, such as salaries, contractor payments, professional fees, rent or commission, and are required to deduct tax first. TCS (tax collected at source) applies when you collect tax from a buyer on specified sales.
- Businesses that paid salaries and deducted tax under section 192.
- Businesses that paid contractors, professionals, landlords or commission agents and deducted tax under the relevant sections.
- Sellers who collected TCS on specified goods or services.
The general rule is that tax deducted in a month is deposited by the 7th of the next month. Government offices and the month of March follow different rules, so they are not covered here.
Step 1: List every deduction made in October
Start with a simple list of each payment on which tax was deducted or collected. For every line note the party's name, PAN, the nature of payment, the amount paid, the section, the rate and the tax deducted.
Group the totals by section. You will need a separate figure for each section because the challan asks for the section code.
Step 2: Check rates and PAN details
Confirm that the rate you used matches the section and that the party's PAN is valid. If a PAN is missing or invalid, a higher rate can apply under section 206AA, so it is better to catch this before you pay than after.
Keep a copy of any lower-deduction certificate you relied on, along with its validity period.
Step 3: Pay using the correct challan
TDS and TCS are paid online through the e-Pay Tax facility on the income tax portal or through authorised bank channels. For payments by companies and for non-company deductors, the challan used is generally ITNS 281. Choose the right tax type, the right section code and the correct assessment year.
- Choose whether you are paying tax deducted from companies' payees or from non-company payees, as the form requires.
- Select the section under which tax was deducted.
- Enter the amount against the tax head; keep interest or fee in its own field if any is due.
- Pay, then download and save the challan with its CIN (challan identification number).
A wrong section code or assessment year is a common reason a payment later fails to match in the TDS return. Review these fields before you submit.
What a late deposit costs you
Under section 201(1A), interest is charged at 1 per cent per month or part of a month if tax was not deducted by the due time and later deducted. Interest is charged at 1.5 per cent per month or part of a month if tax was deducted but not deposited by the due date.
Because it is "month or part of a month", a delay of even one day is charged as a full month. Interest must be paid before you file the TDS return.
Late deposit can also affect your tax computation. Section 40(a)(ia) allows the tax authorities to disallow a part of certain expenses where tax was not deducted or deposited on time. Please confirm the current position with your chartered accountant.
Step 4: Reconcile and prepare for the quarterly return
After payment, match each challan to your October deduction list. The quarterly TDS return for July to September is due on 31 October, and the October challans will go into the next quarter's return, so keep clean records now. Our TDS return checklist for July–September 2026 explains the current return.
If you issue certificates to vendors, also read our guide on Form 16A for July–September 2026, and revisit the TDS compliance basics for growing companies if you are new to this.
A simple monthly routine
- Run the deduction list on the 1st of every month.
- Get internal approval for the payment by the 3rd.
- Pay by the 5th, leaving two days for portal or bank delays.
- Save the challan and update your records the same day.
Key takeaways
- Tax deducted or collected in October 2026 is usually due by 7 November 2026; confirm any extension on the official portal.
- Group deductions by section and verify PAN and rates before paying.
- Use the correct challan, section code and assessment year, and save the CIN.
- Late deposit attracts interest at 1.5 per cent per month or part of a month, so pay early.
- Confirm specifics for your case with a chartered accountant.
If you want to keep your books and tax records in one place, you can look at Smart Books from AICOUNTLY as part of your month-end routine.
