Guide to TDS Certificates: Sections 194-IA, 194-IB, & 194M


Don't Miss the May 15 Deadline!

Guide to TDS Certificates for Sections 194-IA, 194-IB, & 194M

If you purchased a property, paid high rent, or hired a contractor for personal work in March 2026, this week is critical for your tax compliance.

May 15, 2026, is the confirmed deadline to issue TDS certificates for tax deducted under Sections 194-IA, 194-IB, and 194M of the Income-tax Act, 1961. Missing this date can attract daily penalties.

1. Who Needs to Issue These Certificates?

This deadline applies specifically to Individuals and HUFs (Hindu Undivided Families) who are not liable to tax audit but entered into high-value transactions in March 2026.

Section Transaction Type Threshold Form
194-IA Buying Immovable Property (non-agri) Value > ₹50 Lakhs Form 16B
194-IB Paying Rent (Residential/Commercial) Rent > ₹50,000/month Form 16C
194M Contractors/Professionals (Personal) Payment > ₹50 Lakhs/year Form 16D

Note: For deductions in March 2026, laws fall under the Income-tax Act, 1961, as new tax code provisions typically apply starting April 1, 2026.

2. The Compliance Process: From Deduction to Certificate

Deduction: You deducted tax (1% for property, 5% for rent/contractors) at the time of payment in March 2026.
Deposit (Filing): You filed the Challan-cum-Statement (Form 26QB, 26QC, or 26QD) by April 30, 2026.
Issuance: Now, you must download the specific TDS certificate from the TRACES portal and give it to the payee by May 15, 2026.

3. How to Download the TDS Certificate

Certificates must be generated from the official government system. Steps:

  1. Log in to the TRACES Portal as a taxpayer.
  2. Navigate to the "Downloads" tab.
  3. Select "Form 16B/16C/16D".
  4. Enter details: Assessment Year (2026-27), Acknowledgement Number, and PAN of the Payee.
  5. Submit the request and download the PDF once status is "Available".

4. Consequences of Missing the Deadline

Late Issuance Fee: Under Section 272A(2)(g), you may face a penalty of ₹100 for every day the certificate is delayed.

Cap: The penalty cannot exceed the total TDS amount.

Disputes: Payees cannot claim tax credit in their ITR without this certificate, leading to potential legal friction.

Summary Checklist for May 15, 2026

  • Check records for March high-value payments.
  • Verify that Form 26QB/QC/QD was filed.
  • Download Form 16B, 16C, or 16D from TRACES.
  • Send the certificate to the other party immediately.