Key TDS Triggers for Small Taxpayers; Individual & HUFs:

Here are 7 important Key TDS Triggers for Small Taxpayers every Individual & HUF should know. 1. [Section-194IA] Buying a House; Value More Than Rs. 50L?

• Deduct TDS @ 1%
• TAN is not required
• Seller and Buyer should have Valid PAN
• Pay Tax and File Return in Challan - cum Statement Form 26QB within 30 Days from end of Month in which Transaction has taken place.
• Generate TDS Certificate in Form 16B within 15 Days

2. [Section-195] Buying a House from NRI

• TDS to be deducted even if value is less than Rs. 50L
• Deduct TDS @ 13% (Plus Surcharge if applicable) with no indexation benefit [Property held for more than 2 Years]
• Deduct TDS on slab [Property held for upto 2 Years]
• TAN is required
• Seller and Buyer should also have Valid PAN
• Deposit TDS by the 7th of the next month
• File Return in Form 27Q.
• Generate TDS Certificate in Form 16A within 15 Days
• Seller can apply for Lower TDS Certificate
• Seller can get DTAA benefits if required documents available
• 15CA/15CB compliance required for repatriation of funds by NRI Seller.

3. [Section-194IB] Paying monthly rent of more than 50,000; No Tax Audit requirement on Individuals/HUF

• Deduct TDS @ 2%
• TAN is not required
• Seller and Buyer should have Valid PAN
• Pay Tax and File Return in Challan - cum Statement Form 26QC within 30 Days from end of Month in which Transaction has taken place.
• Generate TDS Certificate in Form 16C within 15 Days
• Compliance also applicable on Salaried Taxpayers claiming HRA.

4. [Section-194I] Paying monthly rent of more than 50,000; Tax Audit requirement on Individuals/HUF

• Deduct TDS @ 10% on Land/Building
• 2% on Plant & Machinery.
• TAN is required
• Seller and Buyer should have Valid PAN
• Deposit TDS by the 7th of the next month
• File Return in Form 26Q.
• Generate TDS Certificate in Form 16A within 15 Days

5. [Section-195] Paying rent to NRI

• TDS to be deducted even if monthly rent is Less than Rs. 50,000
• Deduct TDS @ 30% + 4% Cess (Plus Surcharge if applicable)
• TAN is required
• Seller and Buyer should also have Valid PAN
• Deposit TDS by the 7th of the next month
• File Return in Form 27Q.
• Generate TDS Certificate in Form 16A within 15 Days
• Seller can apply for Lower TDS Certificate
• Seller can get DTAA benefits if required documents available
• Form 15CA/15CB compliance required for repatriation of funds by NRI Seller.

6. [Section 194M] Paying for Contractual Services; Yearly Value more than Rs. 50L; No Tax Audit requirement on Individuals/HUF

• Deduct TDS @ 2%
• TAN is not required
• Seller and Buyer should have Valid PAN
• Pay Tax and File Return in Challan - cum Statement Form 26QD within 30 Days from end of Month in which Transaction has taken place.
• Generate TDS Certificate in Form 16D within 15 Days

7. [Section-194C] Paying for Contractual Services; Yearly Value > 1L; Transaction Value > 30K; Tax Audit requirement on Individuals/HUF

• Deduct TDS @ 1% (Individual/HUF); TDS @ 2% (Others)
• TAN is required
• Seller and Buyer should have Valid PAN
• Deposit TDS by the 7th of the next month
• File Return in Form 26Q.
• Generate TDS Certificate in Form 16A within 15 Days

Here is a due date chart for TDS for FY 2025-26 | AY 2026-27

Quarter Ending	Month of Deduction	Due Date for depositing TDS	TDS Return Due Date (Form 24Q/ 26Q / 27Q)	TDS Certificate (Form 16A)
Jun-25	Apr-25	07/05/2025	31/07/2025	15/08/2025
	May-25	07/06/2025
	Jun-25	07/07/2025
Sep-25	Jul-25	07/08/2025	31/10/2025	15/11/2025
	Aug-25	07/09/2025
	Sep-25	07/10/2025
Dec-25	Oct-25	07/11/2025	31/01/2026	15/02/2026
	Nov-25	07/12/2025
	Dec-25	07/01/2026
Mar-26	Jan-26	07/02/2026	31/05/2026	15/06/2026
	Feb-26	07/03/2026
	Mar-26	30/04/2026

Consequences of Non-Deduction/ Non-Payment of TDS/ TCS

Default	Description	Formula for Late Fees/Interest
Late Deduction	TDS Not Deducted or TCS Not Collected	Interest = (TDS/ TCS on Amount Paid/ Credited X Period of Delay X 1.5%)
Late Fees	Failure to file TDS/ TCS Return on/ Before Due date	Late Filing Fee = INR 200 per Day (Fees cannot Exceed TDS/ TCS Amount)
Late Payment	TDS Deducted/ TCS Collected but not deposited	Interest = (TDS/ TCS Not Deposited X Period of Delay X 1.5%)

Period of Delay will be calculated for month or part of the month. Let's understand this with the help of an example. M/S ABC Limited made a payment of Rs. 45000 as professional Fees to Mr. X. Payment was made on 6th April without deduction of TDS. Later, TDS of Rs. was deducted on 3rd May and paid to the government on 10th August.

• Interest for Non-Deduction between 6th April to 3rd May will be calculated as 4500 X 1% X 2 Months.
• Interest for Non-payment between 3rd May to 10th August will be calculated as 4500 X 1.5% X 4 Months.

Non-Deduction or Collection/ Non-payment of TDS/TCS before due date of filing ITR leads to disallowance of expense. [30% of any sum payable to a resident and 100% of any sum payable to Non - resident or outside India]