Under rule 218 of the Income-tax Rules, 2026 a non-government employer deposits salary TDS within seven days from the end of the month of deduction, and TDS for March by 30 April. With the Assessing Officer's approval (and the Joint Commissioner's), quarterly payment is possible: by 7 July, 7 October, 7 January and 30 April. Under section 398(3) interest is 1% a month or part from when tax was deductible to when it was deducted, and 1.5% a month or part from deduction to payment.
Deposit calendar, tax year 2026-27
| Salary month (TDS deducted) | Deposit by |
|---|---|
| April 2026 | 7 May 2026 |
| September 2026 | 7 October 2026 |
| October 2026 | 7 November 2026 |
| February 2027 | 7 March 2027 |
| March 2027 | 30 April 2027 |
Quarterly deposit (only with approval): quarter ended 30 June by 7 July; 30 September by 7 October; 31 December by 7 January; 31 March by 30 April.
Worked example: interest
A firm deducts ₹40,000 of TDS from October 2026 salaries paid on 31 October, but deposits it only in December. The 1.5% rate applies from 31 October to the date of payment, counted in months or parts of months. Even a few days' delay costs at least one month's interest: 1.5% × ₹40,000 = ₹600 per month or part. If the tax had not been deducted at all, 1% a month would run from the date it was deductible.
Count months exactly as the TDS processing (TRACES) demand shows; when in doubt pay early, because each part of a month counts as a full month.
Avoid the common slips
- Pay with the correct TAN, section (392) and assessment or tax year.
- Deposit even if salary is paid late: deduction happens at payment, so the deposit date runs from then.
- Keep challan details for the quarterly statement.
FundRaksha HR shows the month's salary TDS total as soon as payroll closes. See Form 24Q due dates.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.