Navigating June 2026: Your Essential Income Tax Compliance Guide
Critical Deadlines for Financial Year (FY) 2026-27 / Assessment Year (AY) 2027-28
Staying ahead of tax deadlines protects your business from unnecessary penalties and interest. Following the transition to the Income Tax Act, 2025, June 2026 brings critical compliance dates for corporate taxpayers, employers, and individual assessees.
STT and CTT Deposit
The Obligation: If your business processes stock or commodity trades, your first tax deadline falls in the first week of June. You must deposit all Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT) collected during the calendar month of May 2026.
Who It Applies To: Recognized stock exchanges, clearing corporations, registered brokers, and any other entities authorized to collect STT or CTT.
How to Pay: Use Challan ITNS 283 directly through the official Income Tax e-Filing Portal.
The Risk of Delay: Missing this date triggers automatic interest accumulation on the unpaid tax amount and can lead to severe compliance penalties under relevant tax statutes.
First Instalment of Advance Tax
The Obligation: The Indian tax system requires taxpayers to pay their tax liability as they earn throughout the year, rather than in one lump sum at the end. You must pay at least 15% of your estimated total tax liability for the entire fiscal year.
Who It Applies To: Any assessee—whether salaried, self-employed, or a corporate entity—whose total estimated tax liability for the year exceeds ₹10,000 after subtracting TDS and TCS credits.
Exemptions: Senior citizens (aged 60 years or older) who do not earn any income from "Profits and Gains of Business or Profession" remain exempt.
The Cost of Non-Compliance: Under the new Income Tax Act, 2025, deferring or underpaying this instalment attracts mandatory monthly interest of 1% per month under Section 425 (corresponding to the legacy Sections 234B/234C). No interest is levied if the advance tax paid on or before June 15 is at least 12% of the estimated liability.
How to Calculate Your Advance Tax Liability
- Estimate Income: Project your gross total income across all streams (Business, Salary, Capital Gains, House Property, and Other Sources).
- Apply Deductions: Subtract eligible tax deductions.
- Calculate Tax: Compute the tax liability based on the applicable slab rates or regime.
- Deduct TDS/TCS: Subtract any tax already deducted or collected at source.
- Pay 15%: If the remaining amount is above ₹10,000, multiply it by 0.15 and pay that amount on or before June 15 via the Income Tax e-Filing Portal.
Issuance of Form 130 (Form 16) to Employees
The Obligation: For HR departments and business owners, June 15 is one of the most critical operational deadlines of the year. Employers must generate and issue Form 130 (the salary TDS certificate formerly known as Form 16) to their employees for the salary paid during the preceding financial year.
- Part A: Contains details of the tax deducted by the employer and deposited into the government account, generated through the government's TRACES portal.
- Part B: Contains a detailed breakdown of the employee’s salary, allowances, deductions, and final tax computation.
Who It Applies To: All employers and deductors responsible for deducting tax on salaries.
Issuance Mode: Downloaded directly from the TDS CPC TRACES Portal. It can be delivered to employees either physically or with a secure digital signature.
Strict Penalties: Failing to issue this certificate by June 15 attracts a statutory penalty of ₹100 per day of default under Section 272A(2).
Action Checklist for HR and Payroll Teams
- Reconcile Form 24Q: Cross-check your Quarter 4 (Q4) TDS return against payroll logs before pulling certificates from TRACES.
- Verify PAN Details: Ensure all employee Permanent Account Numbers (PANs) are valid to prevent mismatch errors in Part A.
- Support Your Team: Taxpayers are advised to wait for this certificate before filing. Guide your team to check their Form 130 against their Annual Information Statement (AIS) for accurate filing.
📌 Summary of Deadlines
| Compliance Task | Target Audience | Statutory Due Date | Payment/Action Platform |
|---|---|---|---|
| STT / CTT Deposit | Exchanges & Stock Brokers | 7th June 2026 | Income Tax e-Filing Portal (Challan 283) |
| Advance Tax (1st Instalment) | All Taxpayers (Liability > ₹10,000) | 15th June 2026 | Income Tax e-Filing Portal (e-pay tax) |
| Issuance of Form 130 (Form 16) | Employers / Deductors | 15th June 2026 | TRACES Portal to Employees |
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