The Income Tax Department of India has outlined a busy compliance calendar for May 2025, covering a variety of stakeholders including employers, government offices, buyers, and financial institutions. The first major deadline falls on May 7, requiring employers and other deductors to deposit Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) for the month of April 2025. Any delay in making these deposits will attract an interest penalty of 1.5% per month.
Additionally, buyers who submit Form 27C—used to declare exemption from TCS—must provide these forms to sellers or collectors by this date. In turn, the sellers or collectors are required to upload these declarations to the income-tax portal by May 7.
Mid-May: TDS Certificates, Form 24G, and Quarterly Statements
By May 15, several reporting obligations come into effect. Individuals or entities that deducted tax in March 2025 under specific sections—namely Sections 194-IA (property transactions), 194M (payments to contractors), and 194S (digital assets)—are expected to issue TDS certificates to the respective payees.
Government offices that paid TDS/TCS without a challan in April must submit Form 24G, which consolidates such payments. At the same time, TCS collectors must furnish their quarterly statement for the January–March period, covering all tax collections in that quarter.
Additionally, stock exchanges and recognised associations are responsible for filing Form 3BB, which captures client code modifications made during trades executed in April.
Late May: TDS Statements, TCS Certificates, and Annual Filings
The final stretch of May includes some of the month’s most critical deadlines. On May 30, all deductors under Sections 194-IA, 194-IB, 194M, and 194S must submit the challan-cum-statement for TDS deducted in April. TCS collectors, meanwhile, are required to issue Q4 certificates to buyers—documents essential for buyers to claim their TCS credits. Certain institutions, such as NRE bank branches, must also file the annual statement under Section 285B for the financial year 2024–25.
On the last day of the month, May 31, the compliance burden reaches its peak. Employers and other deductors must submit the quarterly TDS statement for January–March. Trustees of approved superannuation funds are required to file their annual return covering tax deducted on employee contributions.
Furthermore, financial institutions must submit Form 61A (Statement of Financial Transactions Report or SFTR) and Form 61B (Common Reporting Standard or CRS report), which are critical components of international tax compliance and anti-tax evasion frameworks.
With numerous due dates spread across the month, taxpayers and institutions must act promptly to avoid penalties and maintain compliance. The Income Tax Department’s detailed schedule emphasizes the importance of timely filing for everyone from property buyers and financial institutions to stock exchanges and superannuation trustees.
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