Before May Ends… Have You Completed These Important Compliances?

As May 2026 approaches its end, many businesses, LLPs, professionals and taxpayers are gradually preparing themselves for the upcoming income tax return season. However, before moving towards ITR filing and year-end tax planning, several important statutory compliances require immediate attention.

Every year, numerous taxpayers end up facing late fees, notices, portal restrictions and unnecessary compliance pressure simply because certain due dates are either overlooked or attended at the last moment. In many cases, the issue is not intentional non-compliance, but delayed preparation.

Certain compliances falling at the end of May and during June directly impact:

  • TDS credit appearing in Form 26AS,

  • issuance of Form-16 and Form-16A,

  • ROC compliance status of LLPs and companies,

  • import-export operations,

  • reconciliation during ITR filing,

  • and future departmental assessments.

Below are some important compliances which businesses, LLPs, deductors and taxpayers should carefully review before May 2026 ends.

Important Compliances Before 31st May 2026

1. Filing of Q4 TDS/TCS Returns for FY 2025-26

Due Date: 31st May 2026

Quarterly TDS/TCS returns for the quarter ending March 2026 are amongst the most significant compliance requirements under the Income-tax Act.

The following returns are generally covered:

  • Form 24Q – Salary TDS Return

  • Form 26Q – Non-Salary TDS Return

  • Form 27Q – TDS on Payments to Non-Residents

  • Form 27EQ – TCS Return

In practice, many taxpayers focus only upon deduction and payment of TDS, while the real difficulty often begins during return filing and reconciliation stage.

Incorrect or delayed filing may result in:

  • mismatch in Form 26AS,

  • AIS/TIS discrepancies,

  • non-reflection of TDS credit,

  • delay in issuance of Form-16 / Form-16A,

  • notices for short deduction or short payment,

  • difficulties during income tax return processing.

Before filing TDS returns, businesses should ideally review:

  • challan reconciliation,

  • PAN validation,

  • section-wise reporting,

  • lower deduction certificates,

  • salary reconciliation,

  • vendor ledger matching,

  • and applicability of various TDS provisions.

Since portal traffic and utility-related issues generally increase near due dates, waiting till the final 1-2 days may unnecessarily increase compliance pressure.

2. LLP Form-11 (Annual Return of LLP)

Due Date: 30th May 2026

All LLPs registered in India are generally required to file LLP Form-11 with the Ministry of Corporate Affairs (MCA).

This annual return broadly contains:

  • details of partners/designated partners,

  • contribution information,

  • and summary details relating to the LLP structure.

One common misconception among many LLPs is that if there is:

  • NIL turnover,

  • no business activity,

  • or dormant operations,

then ROC compliances are not required. Practically, this assumption often leads to additional filing fees and future compliance complications.

Non-filing or delayed filing may result in:

  • additional filing fees,

  • non-compliant MCA status,

  • practical difficulties in future ROC filings,

  • and issues during closure or strike-off process.

Since MCA portal congestion near due dates is quite common, timely filing is always advisable.

3. Form 10BD / 10BE Related Review & Corrections

Although the original due dates relating to Form 10BD may already have passed earlier, many trusts, institutions and reporting entities continue to face reconciliation and correction-related issues even afterwards.

Entities required to furnish Form 10BD should carefully review:

  • donor PAN details,

  • donation classification,

  • reporting mismatches,

  • acknowledgement records,

  • and incorrect entries, if any.

Incorrect reporting may later create difficulties for donors while claiming deductions in their income tax returns.

Before the ITR filing season intensifies further, this is generally a suitable time to complete pending reconciliation and correction-related review wherever required.

Important Upcoming Compliances of June 2026

1. Issuance of Form-16 / Form-16A

Due Date: 15th June 2026 (subject to applicable provisions)

After filing quarterly TDS returns, deductors are generally required to issue:

  • Form-16 in case of salary TDS, and

  • Form-16A in case of non-salary TDS deductions.

These certificates play an extremely important role during:

  • income tax return filing,

  • TDS verification,

  • loan processing,

  • visa documentation,

  • and financial reconciliations.

Incorrect reporting in TDS certificates frequently leads to:

  • mismatch notices,

  • refund delays,

  • TDS credit disputes,

  • and unnecessary follow-up during ITR filing season.

Businesses should therefore ensure proper reconciliation before issuance of certificates.

2. First Instalment of Advance Tax for FY 2026-27

Due Date: 15th June 2026

Taxpayers liable to pay advance tax should start reviewing their estimated tax liability well before the first instalment due date of 15th June 2026.

Many individuals incorrectly assume that advance tax provisions apply only to businesses or self-employed professionals. However, advance tax liability may arise even in cases involving:

  • capital gains,

  • interest income,

  • dividend income,

  • rental income,

  • multiple sources of income,

  • foreign income,

  • or situations where TDS deducted is insufficient compared to actual tax liability.

A Practical Situation Which Many Salaried Taxpayers Ignore

Suppose an employee is earning salary of ₹1,00,000 per month during FY 2026-27. Total annual salary becomes ₹12,00,000.

After claiming standard deduction of ₹75,000 under the new tax regime, taxable salary comes to ₹11,25,000. In such a case, the employer may not deduct any TDS considering rebate benefit availability under the applicable provisions.

However, assume the same taxpayer additionally earns:

  • interest income from FD/RD/savings account,

  • dividend income,

  • or capital gains,

aggregating to ₹1,00,000 during the year.

Now the total taxable income may increase to approximately ₹12,25,000. Once taxable income exceeds the rebate threshold, the overall tax computation changes substantially.

In such cases:

  • employer TDS may become insufficient or NIL,

  • bank TDS on FD interest may be deducted only at limited rates,

  • and the remaining tax liability may need to be discharged directly by the taxpayer through advance tax.

Many taxpayers realise this issue only at the time of income tax return filing, by which time interest exposure under sections 234B and 234C may already arise.

Accordingly, even salaried individuals should periodically review overall income from all sources instead of relying only upon salary TDS deducted by employer.

3. IEC Annual Updation under DGFT

Due Date: 30th June 2026

Businesses involved in import-export activities and holding Import Export Code (IEC) are required to confirm or update IEC details on the DGFT portal annually, even if there is no change in particulars.

Businesses should review:

  • email ID,

  • mobile number,

  • address details,

  • bank particulars,

  • and branch information.

Many businesses unintentionally ignore this compliance assuming it to be procedural in nature until operational difficulties begin appearing.

Non-updation may lead to:

  • inactive IEC status,

  • import-export restrictions,

  • DGFT portal related issues,

  • and practical difficulties during customs processes.

4. DPT-3 Filing by Companies

Due Date: 30th June 2026

Many private companies mistakenly assume that Form DPT-3 applies only where public deposits are accepted. However, in practice, the reporting requirement may extend to several categories of outstanding receipts and exempted borrowings as well.

Accordingly, companies should carefully review:

  • unsecured loans,

  • loans from directors,

  • advances,

  • and other outstanding financial transactions requiring reporting evaluation.

Since financial reconciliation and classification often take time, companies should avoid last-minute preparation for DPT-3 filing.

Incorrect or delayed filing may result in unnecessary ROC compliance exposure and additional filing fees.

Before the Due Dates Arrive…

For many businesses and taxpayers, the real compliance pressure does not begin at the time of income tax return filing, but much earlier during reconciliation, reporting and documentation stages.

Timely completion of statutory compliances not only helps in avoiding notices, penalties and portal-related difficulties, but also ensures smoother tax reporting and financial discipline throughout the year.

Businesses, LLPs, deductors and taxpayers should therefore review pending compliances well before the due dates instead of waiting for last-minute pressure or technical issues.

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Share Your Practical Experience or Query

Have you recently faced any notice, portal issue, reconciliation problem or compliance difficulty relating to TDS, ROC, DGFT or other statutory filings?

You may share your practical experience or query in the comments section. Relevant issues and practical concerns may also be covered in future articles for the benefit of readers and professionals.

Disclaimer: The contents of this article are intended solely for general informational purposes and do not constitute professional advice or legal opinion. Readers are advised to examine the relevant provisions of law, applicable notifications, circulars and amendments and seek appropriate professional guidance before acting upon the information contained herein. The author shall not be responsible for any loss or consequence arising from reliance placed on this article.

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