February 2026 is primarily a month of regular monthly compliance filings with no major quarterly or annual deadlines. However, it carries important carry-forward obligations from Q3 (Oct-Dec 2025), including issuance of TDS certificates (Form 16A) by February 15, 2026. The Union Budget 2026-27, presented on February 1, 2026, proposed the landmark replacement of the Income Tax Act, 1961, with the new Income Tax Act, 2025, effective from April 1, 2026 (subject to enactment) 📋. While no immediate compliance changes arise from the Budget in February itself, businesses should begin preparing for the transition. Key deadlines this month include: GSTR-1 by February 11, 2026; GSTR-3B by February 20, 2026; TDS deposit by February 7, 2026; Form 16A (Q3) by February 15, 2026; and EPF/ESI contributions by February 15, 2026.
Most Important Due Dates for February 2026 (Risk-Prioritised)
| No | Governing Law | Compliance Due | Due Date (Feb 2026) | Who Should File / Brief Particulars |
|---|---|---|---|---|
| 1 | Income Tax Act, 1961 | TDS Deposit (Challan 281) | 07 Feb 2026 | All deductors must deposit TDS/TCS deducted during January 2026. Non-government deductors by 7th of the following month. |
| 2 | Income Tax Act, 1961 | Form 16A – TDS Certificate (Q3) | 15 Feb 2026 | Deductors must issue TDS certificates to deductees for Q3 (Oct-Dec 2025) within 15 days of filing quarterly TDS return (due date: 31 Jan 2026). |
| 3 | CGST Act, 2017 | GSTR-1 (Monthly) | 11 Feb 2026 | Monthly outward supplies return for January 2026 for taxpayers with turnover > Rs. 5 crore or those who have opted for monthly filing. |
| 4 | CGST Act, 2017 | GSTR-3B (Monthly) | 20 Feb 2026 | Monthly summary return for January 2026 for taxpayers with turnover > Rs. 5 crore or monthly filers. |
| 5 | EPF & MP Act, 1952 / ESI Act, 1948 | EPF & ESI Contributions | 15 Feb 2026 | Employers must deposit EPF and ESI contributions for wage month January 2026 and file ECR. |
| 6 | CGST Act, 2017 | IFF – Invoice Furnishing Facility (QRMP) | 13 Feb 2026 | Optional B2B invoice upload by QRMP taxpayers for January 2026 (M1 of Q4: Jan-Mar 2026). |
Income Tax & TDS Compliance – February 2026
February 2026 focuses on monthly TDS deposits and the important carry-forward obligation of issuing Form 16A certificates for Q3 (Oct-Dec 2025). The quarterly TDS returns for Q3 were due by January 31, 2026, and the corresponding TDS certificates must now be issued to deductees. Here is the complete breakdown:
| Due Date | Purpose | Period | Description |
|---|---|---|---|
| 07 Feb 2026 | Deposit of TDS/TCS (Challan 281) | Jan 2026 | Monthly deposit of TDS/TCS deducted during January 2026. Government deductors who deposit through book entry (Treasury Challan) must deposit on the same day of deduction. |
| 14 Feb 2026 | Issue of TDS Certificate (Form 16B/16C/16D) | Dec 2025 | Issue TDS certificates for property purchase u/s 194-IA (Form 16B), rent u/s 194-IB (Form 16C), and payments to contractors/professionals u/s 194M (Form 16D) for deductions made in December 2025. |
| 15 Feb 2026 | Form 16A – Quarterly TDS Certificate | Q3 (Oct-Dec 2025) | Deductors must issue TDS certificates (Form 16A) to all deductees for non-salary TDS deducted during Q3. Must be issued within 15 days from the due date of filing Q3 TDS return (31 Jan 2026). |
| 15 Feb 2026 | Form 24G | Jan 2026 | Government offices where TDS/TCS for January 2026 has been paid without production of a challan must furnish Form 24G by this date. |
Important Notes for TDS Compliance:
Form 16A is generated through the TRACES portal after filing the quarterly TDS return. Deductors who filed Q3 TDS returns (Forms 24Q, 26Q, 27Q) by January 31, 2026, must download and issue Form 16A to their deductees by February 15, 2026. Failure to issue TDS certificates on time may attract a penalty of Rs. 100 per day per certificate under Section 272A(2)(g) of the Income Tax Act, 1961, subject to a maximum of the TDS amount.
As per recent CBDT instructions, certain TDS/TCS return corrections may be time-barred after a prescribed period. Deductors should review Q3 returns promptly and consult their tax advisor for specific correction timelines applicable to their filings.
📌 Union Budget 2026-27 – Proposed TDS/TCS Changes (Effective April 1, 2026, Subject to Enactment):
The Union Budget 2026-27 proposed the following TDS/TCS changes that businesses should prepare for: TCS on overseas tour packages is proposed to be reduced from 5%/20% to a uniform 2%; TCS on education and medical remittances under LRS is proposed to be reduced from 5% to 2%; TDS on manpower supply services is proposed to be rationalised and aligned with contractor payments, with detailed rate and section changes to follow in the notified law. The Budget also signals greater digitisation and simplification of TDS processes, including streamlined lower/nil TDS certificate issuance and declaration handling; details will follow in Rules and departmental guidelines. These changes will apply from April 1, 2026 under the proposed Income Tax Act, 2025, subject to enactment of the Finance Bill and formal notification.
Goods and Services Tax (GST) – February 2026
February 2026 carries standard monthly GST filings. QRMP taxpayers are in the first month (M1) of Q4 (Jan-Mar 2026), making the Invoice Furnishing Facility (IFF) available for uploading January 2026 B2B invoices. Below are all GST-related due dates:
| Due Date | Purpose (Form) | Period | Description |
|---|---|---|---|
| 10 Feb 2026 | GSTR-7 / GSTR-8 | Jan 2026 | Returns for GST TDS/TCS by deductors and e-commerce operators for tax deducted/collected in January 2026. |
| 11 Feb 2026 | GSTR-1 (Monthly) | Jan 2026 | Monthly outward supplies return for taxpayers with turnover > Rs. 5 crore or those who have opted for monthly filing. |
| 13 Feb 2026 | IFF (QRMP) – Invoice Furnishing Facility | Jan 2026 | Optional B2B invoice upload by QRMP taxpayers for January 2026 (M1 of Q4: Jan-Mar 2026). Enables buyers to claim ITC in their monthly GSTR-3B. |
| 13 Feb 2026 | GSTR-5 | Jan 2026 | Non-Resident Taxable Persons monthly return for January 2026. |
| 13 Feb 2026 | GSTR-6 | Jan 2026 | Input Service Distributor (ISD) return – ITC received and distributed during January 2026. |
| 20 Feb 2026 | GSTR-5A | Jan 2026 | OIDAR (Online Information and Database Access or Retrieval) services providers monthly return for January 2026. |
| 20 Feb 2026 | GSTR-3B (Monthly) | Jan 2026 | Monthly summary return for taxpayers with turnover > Rs. 5 crore or monthly filers. |
| 25 Feb 2026 | PMT-06 (QRMP) | Jan 2026 | Monthly tax payment by QRMP taxpayers for January 2026 (M1 of Q4). QRMP taxpayers must pay their estimated tax liability through PMT-06 challan for the first and second months of each quarter. |
Key Points for QRMP Taxpayers in February 2026:
QRMP taxpayers (turnover up to Rs. 5 crore) are now in Q4 (Jan-Mar 2026). During M1 (January) and M2 (February), QRMP taxpayers do not file GSTR-1 or GSTR-3B but must use IFF to upload B2B invoices (optional, by 13th of the following month) and PMT-06 for monthly tax payment (by 25th of the following month). The quarterly GSTR-1 and GSTR-3B for Q4 will be due only in April 2026. If a QRMP taxpayer has sufficient ITC to cover the month’s liability, PMT-06 payment may not be required, but the challan must still be generated showing nil payment ⚡.
Labour Law Compliance (EPF & ESI) – February 2026
Employers must ensure timely deposit of EPF and ESI contributions to avoid penalties and interest. Below are the due dates for February 2026:
| Due Date | Compliance | Period | Particulars |
|---|---|---|---|
| 15 Feb 2026 | EPF & ESI Contributions | Wage Month: Jan 2026 | Deposit contributions and file ECR (Electronic Challan cum Return). Delays attract interest at 12% p.a. u/s 7Q of the EPF Act plus damages as per para 32A of the EPF Scheme and latest EPFO notifications, generally computed as a percentage of arrears depending on the period of default. |
EPF/ESI Contribution Rates:
EPF contribution is 12% by employee plus 12% by employer. The employer’s 12% is split as 3.67% to EPF and 8.33% to EPS. ESI contribution is 0.75% by employee plus 3.25% by employer, applicable for employees earning up to Rs. 21,000 per month.
Late payment consequences include interest at 12% p.a. on EPF delays plus damages as per para 32A of the EPF Scheme and latest EPFO notifications (generally computed as a percentage of arrears depending on the period of default), and penalties under the ESI Act as per applicable regulations. Additionally, employees’ EPF/ESI contributions paid after the statutory due date are generally disallowed as a deduction under section 36(1)(va) of the Income Tax Act, and delayed employer contributions are governed by section 43B.
Foreign Trade (DGFT) & RBI – February 2026
| Due Date | Purpose (Form) | Period | Description |
|---|---|---|---|
| ~9 Feb 2026 | RBI Form ECB-2 | Jan 2026 | Monthly ECB (External Commercial Borrowing) return due within seven working days of month-end. Reported through the RBI FIRMS portal. |
| As applicable | FC-GPR | As applicable | Report to RBI within 30 days of allotment of shares to foreign investors under FDI route. Filed through the FIRMS portal. |
| As applicable | FC-TRS | As applicable | Report transfer of shares between resident and non-resident within 60 days of transfer. Filed through the FIRMS portal. |
State-Specific Compliances (Professional Tax) – February 2026 💼
Important: Professional Tax slabs and due dates are state-specific and change frequently through State Finance Acts and notifications. The table below is illustrative only and is not to be treated as up-to-date legal rates. Always verify on the respective State PT portal (Commercial Tax / Profession Tax department) before filing.
| State | Due Date (Feb) | Frequency | Income Slabs (Illustrative) |
|---|---|---|---|
| Andhra Pradesh | 10 Feb | Monthly | Up to Rs. 15,000: Nil; Rs. 15,001–Rs. 20,000: Rs. 150/month; Above Rs. 20,000: Rs. 200/month |
| Telangana | 10 Feb | Monthly | Up to Rs. 15,000: Nil; Rs. 15,001–Rs. 20,000: Rs. 150/month; Above Rs. 20,000: Rs. 200/month |
| Karnataka | 20 Feb | Monthly | Up to Rs. 25,000: Nil; Above Rs. 25,000: Rs. 200/month (Rs. 2,500/annum) |
| Assam | 28 Feb | Monthly | Up to Rs. 10,000: Nil; Rs. 10,001–Rs. 15,000: Rs. 150/month; Rs. 15,001–Rs. 25,000: Rs. 180/month; Above Rs. 25,000: Rs. 208/month |
| West Bengal | 21 Feb | Monthly | Up to Rs. 10,000: Nil; Rs. 10,001–Rs. 15,000: Rs. 110/month; Rs. 15,001–Rs. 25,000: Rs. 130/month; Rs. 25,001–Rs. 40,000: Rs. 150/month; Above Rs. 40,000: Rs. 200/month |
| Maharashtra | 28 Feb | Monthly/Annual | February is the annual adjustment month. Male employees earning above Rs. 10,000: Rs. 300 (instead of usual Rs. 200). Female employees earning above Rs. 25,000: Rs. 300 (instead of usual Rs. 200). This is to meet the annual cap of Rs. 2,500. |
Maharashtra Professional Tax – February Special Note:
Under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, February is the annual adjustment month. Employers must deduct Rs. 300 (instead of the standard Rs. 200) from male employees’ earnings above Rs. 10,000 per month and from female employees’ earnings above Rs. 25,000 per month. This ensures the total annual Professional Tax deduction equals the statutory maximum of Rs. 2,500 per annum 📊.
Union Budget 2026-27 – Key Highlights for Compliance Planning
The Union Budget 2026-27, presented by the Finance Minister on February 1, 2026, proposed several landmark changes that will impact compliance from the next financial year. While no immediate changes apply in February 2026, businesses should begin their transition planning now:
| Change | Current Position | Proposed Effective Date | Action Required |
|---|---|---|---|
| Income Tax Act, 2025 replaces IT Act, 1961 | IT Act 1961 with amendments | 01 Apr 2026 | Review all tax processes, ITR forms, and compliance workflows |
| MAT rate proposed at 14% (final tax) | 15% under Section 115JB | 01 Apr 2026 | Recalculate MAT liability for FY 2026-27 |
| ITR revision deadline proposed to be extended | December 31 of AY | 01 Apr 2026 | ITR can be revised until March 31 of AY with nominal fee |
| STT on F&O futures proposed to be raised | 0.02% on futures | 01 Apr 2026 | Update F&O trading cost calculations (exact rate to be confirmed in Finance Bill) |
| TCS rates proposed to be reduced on LRS | 5%/20% on remittances | 01 Apr 2026 | Update TCS calculation for overseas remittances |
| Assessment & penalty proceedings proposed to be integrated | Separate proceedings | 01 Apr 2026 | Common order for assessment and penalty |
| Pre-payment for appeals proposed to be reduced | 20% of disputed demand | 01 Apr 2026 | Proposed reduction to 10% of disputed demand |
Note: These changes are Budget proposals that require legislative approval (enactment of the Finance Bill) and formal notification. The proposed Income Tax Act, 2025, along with simplified ITR forms and rules, will be notified before April 1, 2026.
February 2026 Non-Compliance Penalty Matrix (Quick Reference)
Note: The figures below are illustrative, based on current per-day late fee provisions. Actual penalties should be computed on the respective portals or as per the latest notifications.
| Compliance | Penalty Structure | Additional Consequences |
|---|---|---|
| TDS Deposit (Challan 281) | Late fee per day under Section 47 of the CGST Act (Rs. 50/day for regular; Rs. 20/day for nil) subject to turnover-based caps | Prosecution risk for deliberate non-deposit u/s 276B (3 months to 7 years imprisonment). |
| Form 16A Issuance | Penalty Rs. 100 per day per certificate u/s 272A(2)(g), capped at TDS amount | Penalties under the ESI Act; disallowance under the Income Tax Act for delayed employees’ contributions. |
| GSTR-1 (Monthly) | The deductee is unable to claim the TDS credit without a certificate. | Buyer’s ITC delayed; GSTR-3B filing for subsequent period restricted until GSTR-1 filed. |
| GSTR-3B (Monthly) | Late fee Rs. 50 per day (Rs. 20 per day for nil returns), subject to per-return maximum limits notified for different turnover slabs (Notification 19/2021-Central Tax and subsequent amendments); interest at 18% p.a. on unpaid tax | ITC mismatch notices possible; e-way bill generation may be blocked after two consecutive defaults. |
| EPF/ESI | Interest at 12% p.a. on delays (PF) plus damages as per para 32A of EPF Scheme and latest EPFO notifications (percentage of arrears based on period of default) | Varies by state – penalty and interest as per the respective State PT Act |
| Professional Tax | Varies by state – penalty and interest as per respective State PT Act | Non-compliance may attract prosecution under state laws. |
February 2026 Compliance Calendar at a Glance
07 Feb: TDS/TCS deposit for January 2026
~09 Feb: ECB-2 for January 2026
10 Feb: GSTR-7/GSTR-8 for Jan 2026; Professional Tax (AP, Telangana)
11 Feb: GSTR-1 (Monthly) for Jan 2026
13 Feb: IFF (QRMP M1 of Q4); GSTR-5; GSTR-6 for Jan 2026
14 Feb: TDS Certificates (Form 16B/16C/16D) for Dec 2025
15 Feb: EPF/ESI contributions for Jan 2026; Form 16A (Q3 Oct-Dec 2025); Form 24G for Jan 2026
20 Feb: GSTR-3B (Monthly) for Jan 2026; GSTR-5A for Jan 2026; Professional Tax (Karnataka)
21 Feb: Professional Tax (West Bengal)
25 Feb: PMT-06 (QRMP) for Jan 2026
28 Feb: Professional Tax (Assam, Maharashtra – Rs. 300 annual adjustment)
FAQ’s
What is the last date for issuing Form 16A for Q3 (Oct-Dec 2025)?
Are there any quarterly TDS or GST return filings due in February 2026?
What is the IFF facility and who should use it in February 2026?
Why is Maharashtra Professional Tax Rs. 300 in February instead of Rs. 200?
What is the PMT-06 challan and who must file it in February 2026?
Will the Union Budget 2026-27 changes affect my February 2026 compliance?
Is there any advance tax deadline in February 2026?
What is the penalty for late deposit of TDS after deduction?
Disclaimer: This general guidance calendar reflects laws/notifications as of February 3, 2026, incorporating Union Budget 2026-27 announcements presented on February 1, 2026. The Budget proposals are subject to legislative approval by Parliament. Regulations may change; confirm on official MCA/CBDT/CBIC portals (www.incometax.gov.in, www.gst.gov.in, www.epfindia.gov.in, www.esic.gov.in). This is not legal or tax advice. Consult professionals for specific situations. SetIndiabiz offers complete compliance support—alerts, expert advice, and streamlined filings—to help you focus on growth. Transform compliance into a strategic advantage.
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