Income Tax Compliance Calendar for August 2025

Below is a detailed compliance calendar outlining all major TDS/TCS filing, certificate issuance, and statement submission obligations due in August.

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7 August 2025

• Deposit of TDS/TCS for July 2025: All deductors must deposit tax deducted or collected in July. However, for government offices, the payment must be made on the same day, if made without a challan.
• Uploading of Form 27C: Declarations received in Form 27C from buyers for non-collection ofTCS during July must be uploaded.

14 August 2025

Due date for issuing TDS certificates for deductions made in June 2025 under the following sections:

• Section 194-IA – TDS on purchase of immovable property
• Section 194-IB – TDS on rent paid by individuals/HUFs not subject to audit
• Section 194M – TDS on payments by individuals/HUFs for contracts, commissions, or professional fees
• Section 194S – TDS on Virtual Digital Asset (VDA) transfers (by specified persons)

15 August 2025

• Form 24G submission: Government offices that deposited TDS/TCS for July without challan must furnish Form 24G.
• Form 3BB: Stock exchanges must submit client code modification reports for July transactions.
• Quarterly TDS Certificate (Form 16A): For tax deducted other than salary in Q1 (April–June 2025).
• Statement by Recognised Associations: For modified client codes reported during July 2025.

30 August 2025

Deadline for furnishing challan-cum-statements for TDS deducted in July 2025 under:

• Section 194-IA – Property purchase
• Section 194-IB – Rent
• Section 194M – Contractor/professional payments
• Section 194S – VDA/Crypto (by specified persons)

These forms serve dual purposes – tax payment and filing return.

31 August 2025

• Form 9A: Charitable/religious institutions must file this form to apply income in a future year, as permitted under the Explanation to Section 11(1), if their return is due on October 31, 2025.
• Form 10: For accumulation of income under Section 10(21) or 11(1). Applicable only if return filing deadline is October 31, 2025.

Penalties for TDS/TCS Non-Compliance

Missing income tax deadlines can result in interest, fees, and penalties under various sections of the Income Tax Act:

Section 201(1A) – Interest on Late Deduction or Deposit

• 1% per month: If TDS is not deducted on time.
• 1.5% per month: If TDS is deducted but not deposited on time.
• Interest is calculated monthly, not daily, from the relevant date until actual payment.

Section 234E – Late Filing Fee

• Rs. 200 per day of delay in filing TDS/TCS returns.
• Capped at the amount of TDS/TCS.
• Fee is mandatory and cannot be waived.

Section 271H – Penalty for Non-Filing or Incorrect Filing

• Rs. 10,000 to Rs. 1,00,000 penalty may be levied in addition to the 234E fee.
• Applies if the TDS return is:
• Not filed within the due date, or
• Filed with incorrect details (e.g., wrong PAN, wrong amount).

Section 40(a)(ia) – Disallowance of Expense in Tax Computation

• 30% of the expense is disallowed if TDS on payments to residents is not deducted/deposited.
• 100% disallowance applies in certain cases involving non-residents (excluding salaries).

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Additional Compliance Notes

• Quarterly due dates for TDS returns in FY 2025–26 are:
• Q1: July 31, 2025
• Q2: October 31, 2025
• Q3: January 31, 2026
• Q4: May 31, 2026
• Penalties and interest can be paid online using the Income Tax e-filing portal, typically via Challan No. 280.
• A Parliamentary Select Committee has proposed relaxing penalties for small taxpayers with non-taxable income who miss deadlines due to TDS refund-related delays. However, this proposal is not yet law.

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