Income Tax Compliance Calendar June 2026: ITR & TDS Guide

June 2026 marks a critical month in India's income tax compliance calendar, particularly for employers and salaried employees navigating the transition to the Income Tax Act 2025. With multiple deadlines converging—Form 130 issuance by June 15, the first advance tax installment, and preparation for ITR filing—understanding your obligations is essential to avoid penalties and ensure smooth compliance.

As the new Income Tax Act 2025 replaces the six-decade-old Income Tax Act 1961 effective from April 1, 2026, taxpayers must understand the dual compliance framework: returns for FY 2025-26 (AY 2026-27) are governed by the old Act, while advance tax payments and TDS deductions from April 2026 onwards follow the new legislative framework under Tax Year 2026-27.

This comprehensive guide covers every critical deadline, form change, and compliance requirement for June 2026, helping employers meet their statutory obligations and salaried employees file accurate returns on time.

Understanding the Income Tax Act 2025 Transition: What Changes in June 2026

The Income Tax Rules 2026 replaced the Income Tax Rules 1962 with effect from April 1, 2026, and will be applicable for Tax Year 2026-27 onwards. This transition creates a unique dual-compliance scenario during June 2026.

Key Terminology Changes Under the New Act

Under the Income Tax Act 2025, the term 'financial year' has been replaced with 'tax year' to simplify tax reporting terminology. For taxpayers, this means:

• Tax Year (TY) 2026-27: Refers to the period April 1, 2026 to March 31, 2027 under the new Act
• Assessment Year (AY) 2026-27: Still applies to income earned in FY 2025-26 under the old Act
• Form 130: Replaces Form 16 as the annual salary TDS certificate under Income Tax Rules 2026
• Form 138: Replaces Form 24Q for quarterly salary TDS returns
• Form 140: Replaces Form 26Q for non-salary TDS returns

Compliance requirements relating to financial year 2025-26 continued to be governed by the Income Tax Act 1961, while taxpayers need to ensure that compliances relating to financial year 2026-27 would be in the new forms and in certain cases, with revised timelines as provided in the Income Tax Act 2025 and the Income Tax Rules 2026.

Critical June 2026 Compliance Deadlines: Employer Obligations

1. Form 130 Issuance Deadline: June 15, 2026

Employers must issue Form 16 to employees by June 15, 2026. Under the new framework, this certificate is now designated as Form 130 under Income Tax Rules 2026, though it serves the same purpose as the previous Form 16.

Form 130 contains:

• Details of salary paid during FY 2025-26
• TDS deducted month-wise under the old Act
• Tax regime opted by the employee (new or old)
• Employer's TAN and employee's PAN
• Annexure showing computation of taxable salary and deductions claimed

Employer Action Required: Download Form 130 from the TRACES portal with the official watermark. Manually generated certificates are not valid for employee ITR filing. Non-issuance can attract penalties and employee complaints.

2. TDS Payment Deadline: June 7, 2026

Under the Income Tax Act 1961, TDS must be deposited to the credit of the Central Government within the 7th of the month following the month of deduction, with TDS deducted in March having a due date of 30th April for non-government deductors.

For June 2026:

• May 2026 TDS: Due on June 7, 2026
• Form to use: Challan ITNS 281 under the new Income Tax Act 2025 provisions
• Section references: Quote Section 393 or 394 for deductions from April 2026 onwards

Late deposit attracts interest at 1.5% per month from the deduction date to the payment date under the provisions of the new Act. Use TaxFetch's Form 26AS / TDS Fetch Tool to verify all TDS credits before filing returns.

3. TDS Return Filing Transition

The Q4 TDS return (old Form 24Q for FY 2025-26) was due by 31 May 2026. Form 24Q for salary TDS returns is replaced by Form 138, and Form 26Q for non-salary TDS returns is replaced by Form 140 under the Income Tax Act 2025. However, Q4 of FY 2025-26 (January to March 2026) must still be filed on old Form 24Q and Form 26Q. New Form 138 and Form 140 apply from Q1 of Tax Year 2026-27 (April to June 2026) onwards, with the return due by 31 July 2026.

Compliance Timeline:

Advance Tax Obligations for June 2026: Who Must Pay and How Much

First Installment Due: June 15, 2026

For Tax Year 2026-27, the first advance tax installment is due on June 15, 2026, with taxpayers required to pay 15 percent of their estimated annual tax liability. India's advance tax system operates on a 'pay-as-you-earn' basis, requiring taxpayers to pay income tax during the same tax year in which income is earned. The framework is governed under Sections 403 to 410 of the Income Tax Act 2025.

Who Needs to Pay Advance Tax?

Any taxpayer whose estimated tax liability exceeds INR 10,000 after adjusting TDS must pay advance tax. This includes:

• Self-employed professionals and freelancers
• Business owners
• Salaried individuals with additional income (rental income, capital gains, interest)
• Investors with taxable gains from equity, mutual funds, or property

Exemptions from Advance Tax

Senior citizens aged 60 years or above without business or professional income are exempt from advance tax requirements. Salaried employees whose employers deduct adequate TDS to keep residual liability below ₹10,000 are also exempt.

Advance Tax Payment Schedule for Tax Year 2026-27

• June 15, 2026: 15% of estimated annual tax
• September 15, 2026: 45% cumulative (additional 30%)
• December 15, 2026: 75% cumulative (additional 30%)
• March 15, 2027: 100% of total tax liability

Delayed or insufficient advance tax payments may attract interest and penalties under the provisions of the Income Tax Act 2025. Calculate your advance tax liability accurately using TaxFetch's Income Tax Calculator to avoid underpayment penalties.

ITR Filing Deadlines for Assessment Year 2026-27

June 2026 is the preparatory month before the critical ITR filing deadlines in July and August. The ITR filing window for AY 2026-27 opened on April 1, 2026, though most salaried taxpayers wait until June because employers issue Form 16 by June 15.

Category-Wise ITR Filing Deadlines

ITR filing last date for individuals not subject to tax audit is 31st July 2026 & 31st August 2026 as applicable for FY 2025-26 (AY 2026-27).

• ITR-1 and ITR-2 filers: July 31, 2026 (salaried employees, pensioners, individuals with income from house property and capital gains)
• ITR-3 and ITR-4 filers: August 31, 2026 (professionals, freelancers, presumptive taxation cases)
• Audit cases: October 31, 2026
• Transfer pricing cases: November 30, 2026
• Belated returns: December 31, 2026 (with late fee up to ₹5,000)
• Revised returns: March 31, 2027

Tax Slabs for AY 2026-27: New Tax Regime

As proposed in Budget 2026, there are no changes to the tax slabs for FY 2026-27. The existing tax slabs and rates will be applicable as it is under both the new and old tax regime. Under the new tax regime (default):

• Up to ₹4,00,000: Nil
• ₹4,00,001 to ₹8,00,000: 5%
• ₹8,00,001 to ₹12,00,000: 10%
• ₹12,00,001 to ₹16,00,000: 15%
• ₹16,00,001 to ₹20,00,000: 20%
• ₹20,00,001 to ₹24,00,000: 25%
• Above ₹24,00,000: 30%

With effect from FY 2025-26, income up to Rs 12 lakhs can be effectively tax-free. For salaried employees, after claiming the ₹75,000 standard deduction, income up to ₹12.75 lakh is completely tax-free under Section 87A rebate.

Example: Mr. Sharma earns ₹12,75,000 in salary. After ₹75,000 standard deduction, his taxable income is ₹12,00,000. Tax calculated: ₹60,000. However, he receives full rebate under Section 87A (applicable up to ₹12 lakh income), reducing his final tax liability to ₹0.

Plan your investments and deductions using TaxFetch's comprehensive Income Tax Calculator to optimize your tax liability under both regimes.

Key Compliance Documents Employees Need for ITR Filing

Documents to Collect by End of June 2026

• Form 130 (Form 16): From employer by June 15, 2026
• Form 26AS / AIS: Available on income tax e-filing portal (use TaxFetch's TDS Fetch Tool for easy access)
• Bank statements: For interest income verification (analyze using Bank Statement Analyser)
• Capital gains statements: From stock brokers, mutual fund houses (calculate using Capital Gain Calculator or Stock Profit Calculator)
• HRA receipts: If claiming HRA exemption (verify eligibility with HRA Calculator)
• Investment proofs: Section 80C, 80D, home loan interest certificates
• Property details: For income from house property

Form 26AS vs Annual Information Statement (AIS)

Annual Information Statement will continue for tax periods governed by the Income Tax Act 1961 (up to AY 2026-27), and from Tax Year 2026-27 onwards under the Income Tax Act 2025, it will stand replaced by Form No. 168 as the evolved Annual Information Statement.

For AY 2026-27 filing, verify all TDS credits, interest income, dividend income, and securities transactions in your AIS before filing. Mismatches can trigger notices.

Common Compliance Mistakes to Avoid in June 2026

For Employers

• Using wrong forms: Q1 TY 2026-27 must use Form 138/140, not old Form 24Q/26Q
• Incorrect section references: Deductions from April 2026 onwards must quote Section 393 (Table items) under new Act, not old section numbers like 194C, 194J
• Delayed Form 130 issuance: Missing June 15 deadline delays employee ITR filing and attracts penalties
• Challan errors: Selecting wrong Assessment Year vs Tax Year in payment challans
• Missing TRACES watermark: Manually generated certificates without official TRACES watermark are invalid

For Employees

• Not reconciling Form 130 with Form 26AS: Always cross-verify TDS credits before filing
• Missing tax regime selection deadline: Non-business taxpayers can switch regimes annually, but must choose before filing ITR
• Ignoring belated filing consequences: Late filing means losing carry-forward of capital losses, interest charges, and late fees
• Incorrect income reporting: All income reflected in AIS must be reported to avoid AI-driven scrutiny
• Not paying advance tax: Salaried individuals with additional income (rent, capital gains) often forget advance tax obligations

Penalties and Interest for Non-Compliance

Late Filing Fees

Missing the deadline can lead to interest charges under Section 234A and a late filing fee up to Rs. 5,000 under Section 234F. Specifically:

• ₹5,000 if total income exceeds ₹5 lakh
• ₹1,000 if total income is below ₹5 lakh
• Maximum filing date for belated returns: December 31, 2026

Interest on Tax Dues

• Section 234A: 1% per month on unpaid tax from the due date until payment date
• Section 234B: Interest for shortfall in advance tax
• Section 234C: Interest for deferment of advance tax installments

TDS-Related Penalties

You can file TDS after the due date, however penalty of Rs 200 per day as per Section 427 (Section 234E of the Income Tax Act 1961) needs to be paid. Additionally:

• Interest at 1%: For failure to deduct TDS on time
• Interest at 1.5%: For failure to deposit deducted TDS
• Section 271H penalty: ₹10,000 to ₹1,00,000 for incorrect or late TDS returns
• Prosecution: Imprisonment of 3 months to 7 years for willful default in TDS deposit

Action Checklist: June 2026 Compliance for Employers

1. By June 7, 2026: Deposit May 2026 TDS using correct challan (ITNS 281) with Tax Year 2026-27 reference
2. By June 15, 2026: Issue Form 130 to all employees via TRACES portal download
3. By June 15, 2026: Pay first advance tax installment (15% of estimated TY 2026-27 liability)
4. By June 30, 2026: Finalize employee investment declarations and tax computations for FY 2025-26
5. Prepare for July 31, 2026: Q1 TDS return filing in new Form 138/140 format
6. Update payroll systems: Ensure software reflects new section references, form numbers under Income Tax Act 2025

Action Checklist: June 2026 for Salaried Employees

1. Collect Form 130: Obtain from employer by June 15, 2026
2. Download Form 26AS/AIS: Verify all TDS credits match Form 130 using TaxFetch's TDS Tool
3. Calculate tax liability: Use TaxFetch's Income Tax Calculator to compare old vs new regime
4. Pay advance tax if applicable: If additional income creates ₹10,000+ tax liability by June 15, 2026
5. Organize documents: Bank statements, capital gains statements, investment proofs, rent receipts
6. Verify HRA eligibility: Use HRA Calculator to maximize exemption
7. Prepare for ITR filing: Target filing in first week of July to avoid last-minute portal congestion

Frequently Asked Questions

What is the deadline for employers to issue Form 130 in June 2026?

Employers must issue Form 130 (the new TDS certificate replacing Form 16) to all salaried employees by June 15, 2026. This certificate contains details of salary paid and TDS deducted for FY 2025-26 (AY 2026-27) under the Income Tax Act 1961. The deadline remains unchanged from the previous Form 16 requirement. Failure to issue Form 130 on time can attract penalties and delay employees' ITR filing process.

What is the first advance tax installment due date for Tax Year 2026-27?

The first advance tax installment for Tax Year 2026-27 is due on June 15, 2026. Taxpayers must pay 15% of their estimated annual tax liability by this date under Sections 403 to 410 of the Income Tax Act 2025. This applies to individuals, professionals, freelancers, and businesses whose estimated tax liability exceeds ₹10,000 after TDS deductions. Senior citizens aged 60+ without business income are exempt from advance tax requirements.

When is the ITR filing deadline for salaried employees for AY 2026-27?

For AY 2026-27 (FY 2025-26), salaried employees filing ITR-1 or ITR-2 must file by July 31, 2026. Those filing ITR-3 or ITR-4 have until August 31, 2026. The ITR filing window opened on April 1, 2026. These returns are governed by the Income Tax Act 1961, even though filed after the new Act came into force. Late filing attracts a penalty up to ₹5,000 under Section 234F and interest under Section 234A.

What are the TDS payment and return filing due dates for June 2026?

TDS deducted in May 2026 must be deposited by June 7, 2026. The Q4 TDS return (January-March 2026) in Forms 24Q, 26Q, and 27Q was due on May 31, 2026. For Tax Year 2026-27, TDS deducted from April 2026 onwards follows the new Income Tax Act 2025 and uses new forms—Form 138 for salary TDS and Form 140 for non-salary TDS. The Q1 TDS return (April-June 2026) will be due on July 31, 2026.

How does the Income Tax Act 2025 affect June 2026 compliance?

The Income Tax Act 2025, effective from April 1, 2026, introduces 'Tax Year' terminology replacing 'Financial Year' and 'Assessment Year.' For June 2026, dual compliance exists: returns for FY 2025-26 (AY 2026-27) follow the old Act, while advance tax and TDS for Tax Year 2026-27 follow the new Act. Form 130 replaces Form 16, and new TDS forms (138, 140, 173) are applicable. The core filing framework and deadlines remain largely unchanged.

Conclusion: Stay Compliant, Stay Stress-Free

June 2026 is a pivotal month requiring meticulous attention to multiple compliance deadlines under both the old and new Income Tax Acts. Employers must ensure timely Form 130 issuance by June 15, accurate TDS deposits by June 7, and correct advance tax payment. Salaried employees should collect all necessary documents, verify TDS credits, and prepare for ITR filing in July.

The transition to the Income Tax Act 2025 brings new forms and terminology but retains familiar deadlines and compliance frameworks. By staying organized, using the right tools, and meeting each deadline proactively, you can navigate this complex month with confidence.

Simplify your entire tax compliance journey with TaxFetch's comprehensive suite of automated tax tools—from TDS verification and tax calculation to ITR filing assistance. Let technology handle the complexity while you focus on your business and career.