If TDS was deducted but not deposited, or deposited but the statement was not filed, treat these as separate failures. In 2026 the governing law depends on when the TDS trigger occurred: payments/credits up to 31 March 2026 remain under the Income-tax Act, 1961; events from 1 April 2026 fall under the Income Tax Act, 2025. The Income Tax Department confirms both frameworks continue during transition.
What this means for you
Reconstruct the transaction date, applicable Act, challan and statement status before calculating consequences.
Who this applies to
Businesses and employers with TAN obligations.
Why this problem happens
A payroll/accounting entry can deduct tax while cash is never remitted, or remittance can happen without a quarterly statement.
What should be checked immediately
Use an indexed checklist rather than scattered messages. The exact documents vary by issue, but the records below should be under business control before any filing, correction or response.
| Question | Evidence | Why |
|---|---|---|
| Was TDS deducted? | Ledger/payroll | Establish default |
| Was it deposited? | Challan/CIN | Payment proof |
| Was statement filed? | Acknowledgement | Reporting proof |
| Was PAN correct? | Statement data | Credit can fail |
| Which Act applies? | Credit/payment date | 1961 vs 2025 Act |
What to do now
For pre-1 April 2026 events use the old Act/old statement framework; for post-1 April events use the 2025 Act and current forms/utilities. Reconcile deductees before correction.
Practical hypothetical example
A company deducted March 2026 contractor TDS on 31 March but deposited in May. The official transition FAQ says the old Act governs and confirms 1.5% per month interest from deduction to actual payment in that situation.
What happens if this is ignored
Non-deposit can lead to recovery, interest and other consequences; non-filing can prevent correct deductee credit.
What TargoLegal checks before filing or responding
TargoLegal separates tax deducted, tax deposited and statement filing for each quarter, then maps correction and interest consequences.
What the customer should approve and receive
Before filing or response
Receive the issue summary, pending-document list, proposed figures/treatment, deadline and payment impact. Material assumptions should be visible.
After submission
Receive the filed return/form or response, government acknowledgement, payment proof and a short open-items list.
Do not make the handover or correction harder
Statutory deadlines continue.
Keep portal access under business control.
Rebuild from source records and prior filings.
Every completed filing should leave an official trail.
What to send for a first review
Send the quarter plus challan/CIN and statement status for a TDS compliance review.
Related questions
How do I know the filing or response is actually complete?
Look for the official acknowledgement/status on the relevant government portal and retain the filed copy. A payment receipt or provider message is not enough.
Should I share my portal password with a new provider?
Prefer official authorisation, secure reset and business-controlled access. Do not send passwords or OTPs through uncontrolled chats.
Can I blame the previous adviser in the government response?
A statutory response should focus on facts, law and evidence. Private responsibility with a provider is a separate issue unless legally relevant.
What should I approve before filing?
You should receive a concise summary of figures, differences, payment/correction proposed and unresolved risks before submission.
What should I keep afterwards?
Keep the filed form/return, acknowledgement, payment proof, reconciliation and any response/order in a business-controlled archive.
Official sources used
Legal and portal claims were anchored to the official references below. Forums and customer complaints were used only to understand real-world confusion, never as legal authority.
TargoLegal Research and Editorial Desk · Last legally reviewed: 18 August 2026. Recheck live forms, notifications, portal workflows and response dates immediately before acting.
