Taxpayers are facing a packed schedule in May 2026 as critical compliance deadlines rapidly approach.
From the mandatory deposit of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) for April 2026 to the issuance of vital certificates and filing of key financial statements, numerous due dates are set throughout the month.
Under the , 2025, specific mandates, including declarations and challan-cum-statements, require immediate attention to meet strict timelines.
Failure to adhere to these scheduled dates may trigger significant penalties, making it essential for filers to monitor upcoming requirements closely.
7 May 2026: TDS/TCS Deposit Deadline
The first major milestone is the deadline for depositing tax withheld or collected during April 2026.
According to the official portal, all sums collected or deducted by government offices must be credited to the central government on the same day the tax is paid, even without a physical challan.
It also serves as the final date for buyers to file declarations under Section 394(2) of the Income Tax Act 2025 to procure goods without tax collection for the April period.
15 May 2026: Certificates and Statements
Mid-month marks the deadline for issuing TDS certificates for deductions made in March 2026 under Sections 194-IA, 194-IB, and 194M of the Income Tax Act, 1961.
Additionally, government agencies must submit Form 24G by this date if April’s TDS/TCS was processed without a challan.
Other institutional requirements due on 15 May include monthly statements from stock exchanges regarding client code modifications in April 2026 and the quarterly statement for TCS deposited for the period ending 31 March 2026.
Recognised associations must also report system-level client code amendments for the preceding month.
30 May 2026: Final May Deadlines
As the month concludes, 30 May serves as the cutoff for distributing TCS certificates for the fourth quarter of the 2025-26 fiscal year. Taxpayers must also submit information required under Section 285B of the Income Tax Act 1961 for the 2025-26 period. Finally, this date is the deadline for the challan-cum-statement of tax deduction required under Section 393(1) of the Income Tax Act, 2025.
Net direct tax collections rise by 5.12% in FY26
India’s net direct tax collections rose by 5.12% to exceed ₹23.40 lakh crore during the 2025-26 fiscal year, though the figures fell short of the revised targets established for the period ending March 2026.
Under the revised estimates (RE) for the 2025-26 fiscal, the administration had reduced the direct tax collection goal to ₹24.21 lakh crore from an initial budget estimate of ₹25.20 lakh crore. This subdued performance follows significant income tax reductions introduced in the February 2025 budget. Finance Minister Nirmala Sitharaman notably increased the tax rebate to ₹12 lakh from the previous ₹7 lakh, effective 1 April 2025. Additionally, she overhauled tax slabs and raised the standard deduction to ₹75,000.
The RE figures comprised corporate tax targets of ₹11.09 lakh crore and personal income tax (including STT) of ₹13.12 lakh crore. Actual net corporate tax mop-up reached ₹10.99 lakh crore, representing an 11.4% growth. Conversely, non-corporate tax collection—which covers individuals, firms, and local authorities—remained stagnant at ₹11.83 lakh crore.
Data from the Central Board of Direct Taxes (CBDT) further indicated that Securities Transaction Tax (STT) receipts climbed 7.9% to reach ₹57,522 crore.
Ultimately, the total net direct tax collection of ₹23.40 lakh crore for FY26 marked a 5.12% increase compared to the ₹22.26 lakh crore recorded in FY25. However, the shortfall against revised targets highlights the fiscal impact of the recent tax relief measures.