India Compliance Roundup: April — Key Deadlines, Filings & Regulatory Updates

Why April Is the Most Critical Compliance Month in India

April is uniquely demanding for companies in India because it straddles two financial years. The new financial year (FY 2026-27) begins on April 1, while dozens of compliance obligations from the closing year (FY 2025-26) carry deadlines into April and May. For foreign-owned companies managing Indian operations remotely, this dual-year overlap creates the highest risk window for missed deadlines and avoidable penalties.

India's regulatory environment spans central and state jurisdictions — the Income Tax Act, GST laws, Companies Act, FEMA, EPF and ESI statutes, and state-level Professional Tax acts all have independent filing cycles that converge in April. Missing even one deadline can trigger automatic penalties, interest charges, and in some cases, suspension of registrations.

This roundup covers every key deadline for April, organised by compliance category, with the exact due date, applicable form, penalty for delay, and practical tips for foreign companies.

Income Tax Compliance: Year-End and New Year Obligations

March 15 (Just Passed): Final Advance Tax Instalment

The fourth and final instalment of advance tax for FY 2026-27 was due on March 15, 2026. Companies that did not pay at least 100% of their estimated tax liability by this date face interest under Section 234C at 1% per month on the shortfall amount. If total advance tax paid during the year is less than 90% of the assessed tax, interest under Section 234B also applies at 1% per month from April 1 until the date of tax payment.

For foreign-owned subsidiaries, the April action item is to reconcile advance tax payments against actual income for FY 2026-27 and determine whether any self-assessment tax needs to be paid before the ITR filing deadline to minimise interest exposure.

April 1: New Financial Year Begins (FY 2026-27)

With the start of FY 2026-27, companies must update TDS rates for salary deductions based on the latest Finance Act provisions. The Budget for FY 2026-27, presented in February 2026, may have introduced new TDS rates, threshold changes, or exemptions that take effect from April 1. Payroll teams must update their systems before processing April salaries. Additionally, the new surcharge structure, rebate thresholds under Section 87A, and standard deduction limits must all be verified against the latest Finance Act. For foreign companies paying expatriate employees in India, the impact on TDS deduction schedules can be significant — a missed rate update in April means incorrect TDS for the entire quarter, requiring corrections in the Q1 return.

April 7: TDS/TCS Deposit for March 2026

TDS deducted and TCS collected during March 2026 must be deposited with the government by April 7, 2026. This applies to all forms of TDS — on salary (Section 192), interest (Section 194A), professional fees (Section 194J), rent (Section 194I), payments to non-residents (Section 195), and all other applicable sections.

For foreign-owned companies, Section 195 TDS on payments to the parent company (management fees, royalties, technical service fees) is particularly important. The TDS rate depends on the nature of payment and applicable DTAA rate. Late deposit attracts interest of 1.5% per month from the date of deduction to the date of deposit.

April 14: TDS Certificate Issuance (Form 16B, 16C, 16D)

TDS certificates for property purchase (Form 16B), rent (Form 16C), and payments to contractors/professionals (Form 16D) for the month of February must be issued by April 14. While this is a monthly obligation, April is when companies often fall behind due to year-end workload.

April 30: TCS Quarterly Return (Form 27EQ — Q4)

The Tax Collected at Source return for the January-March quarter (Q4) must be filed by April 30 in Form 27EQ. This applies to companies that collect TCS on specified transactions such as sale of goods exceeding INR 50 lakh, overseas remittances under LRS, and sale of motor vehicles.

Year-End Financial Close: April Action Items

April is when the financial close process for FY 2026-27 reaches its most intensive phase. For foreign-owned subsidiaries, the year-end close involves reconciling inter-company accounts with the parent entity, finalising foreign currency transaction adjustments, and ensuring all cross-border invoices are properly recorded.

Inter-Company Account Reconciliation

Foreign subsidiaries must reconcile all inter-company balances — receivables, payables, loans, and management fee accruals — with the parent company's records. Discrepancies discovered after the audit begins create delays and can trigger transfer pricing scrutiny if the tax authorities perceive that inter-company charges were adjusted after year-end. Best practice is to complete this reconciliation by April 15, before the statutory auditor begins fieldwork.

Foreign Currency Translation

All foreign currency monetary items (receivables, payables, loans) must be restated at the RBI reference rate as of March 31, 2026. Non-monetary items denominated in foreign currency remain at historical cost. The exchange difference on translation is recognised in profit and loss under Ind AS 21 / AS 11, and this adjustment affects both taxable income and the financial statements presented at the AGM.

Provision for Doubtful Debts and Contingencies

Companies must finalise provisions for doubtful debts, warranty claims, legal contingencies, and gratuity obligations as of March 31. For foreign subsidiaries, the gratuity actuarial valuation must be obtained from a qualified actuary — a report that typically costs INR 15,000 to INR 50,000 and requires 2-3 weeks to complete. Starting this process in early April ensures the valuation is ready before the statutory audit commences in May or June.

Books of Account Closure

Under Section 128 of the Companies Act, 2013, books of accounts must be kept on an accrual basis and in the double-entry system. April is when companies should finalise journal entries for accrued expenses, prepaid adjustments, depreciation schedules, and deferred tax calculations. The statutory auditor will require finalised trial balances and supporting schedules before beginning the audit. For companies with a clean-close process, targeting April 30 for preliminary trial balance completion is reasonable.

GST Compliance: Monthly and Year-End Filings

April 10: GSTR-7 and GSTR-8 for March

GSTR-7 (TDS under GST) and GSTR-8 (TCS under GST, applicable to e-commerce operators) for March 2026 are due by April 10. Companies registered as TDS deductors under GST must file GSTR-7 reflecting all GST TDS deducted during March.

April 11: GSTR-1 for March (Monthly Filers)

The statement of outward supplies for March 2026 must be filed by April 11. This is the final GSTR-1 for FY 2026-27 and must accurately capture all sales, exports, and adjustments for March. Errors in this return directly affect annual reconciliation.

April 13: GSTR-6 (Input Service Distributor)

Companies operating as Input Service Distributors must file GSTR-6 by April 13, distributing input tax credit across branches or units. This is relevant for foreign companies with multiple GST registrations across states.

April 20: GSTR-3B for March (Monthly Filers)

The summary return and tax payment for March 2026 is due by April 20. This is the last GSTR-3B of FY 2025-26. Companies must ensure all input tax credit (ITC) claims for the year are properly reflected. Under Rule 36(4), ITC claims are restricted to invoices appearing in GSTR-2B — any vendor invoices not uploaded by your suppliers will result in lost ITC.

A critical reminder: missing two consecutive GSTR-3B filings now triggers automatic suspension of GST registration. If your March filing is missed after already missing February, your registration could be suspended, freezing your ability to issue tax invoices and claim ITC.

April 30: GSTR-4 Annual Return (Composition Scheme)

Note: From FY 2024-25 onwards, the GSTR-4 annual return due date has been extended to June 30 of the following financial year (per CGST Notification 12/2024). So for FY 2026-27, GSTR-4 is now due by June 30, 2026 — not April 30. Companies on the composition scheme should note this change but not become complacent about the extended timeline.

TDS Quarterly Returns: Q4 (January-March) Filing

The quarterly TDS return filing for Q4 of FY 2025-26 is one of the most important April-period obligations. While the due date falls in May, preparation must begin in April.

May 31: Q4 TDS Returns (Forms 24Q, 26Q, 27Q)

All quarterly TDS returns for Q4 (January-March 2026) are due by May 31, 2026:

For foreign-owned companies, Form 27Q is critical — it captures all TDS deducted under Section 195 on payments to the parent company, overseas vendors, and foreign directors. Errors in Form 27Q can delay the parent company's ability to claim foreign tax credits in their home jurisdiction.

Special Q4 Requirements for Form 24Q

Form 24Q for Q4 includes Annexure II, which requires salary-wise details for each employee for the entire financial year. This makes the Q4 filing significantly more complex than other quarters. Companies must reconcile: total salary paid, exemptions claimed, deductions under Chapter VI-A, TDS deducted month-by-month, and Form 12BA details for perquisites. Late filing of TDS returns attracts a fee of INR 200 per day under Section 234E, capped at the TDS amount. Additionally, a penalty between INR 10,000 and INR 1,00,000 can be levied under Section 271H.

PF, ESI, and Labour Law Compliance

April 15: PF and ESI Contributions for March

Employer and employee contributions to the Employees' Provident Fund (EPF) and Employee State Insurance (ESI) for March salaries must be deposited by April 15, 2026. The EPF contribution is 12% of basic salary from both employer and employee (with the employer's 12% split into 3.67% EPF + 8.33% EPS). ESI applies at 3.25% employer + 0.75% employee for employees earning up to INR 21,000 per month.

Late PF deposits attract damages ranging from 5% to 25% of the amount, depending on the delay period:

April 25: PF ECR Filing for March

The Electronic Challan cum Return (ECR) for March must be filed by April 25 on the EPFO portal. This return captures employee-wise PF contribution details and must match the challan deposited by April 15.

April 15: ESI Contribution for March

ESI contributions for March must also be deposited by April 15 on the ESIC portal. The ESI half-yearly return for October-March is due by May 11, consolidating six months of contribution data.

Companies Act (MCA/ROC) Compliance

April: Board Meeting Planning

Under the Companies Act, 2013, every company must hold a minimum of four board meetings per year, with not more than 120 days between two consecutive meetings. Companies that held their last board meeting in January should schedule the next by late April or May to maintain the 120-day gap requirement.

April 30: MSME Half-Yearly Return (Form MSME-1)

Companies that receive supplies from Micro and Small Enterprises and whose payments to such suppliers exceed 45 days from the date of acceptance must file Form MSME-1 for the October-March period. The due date is April 30 (within 30 days of the half-year end). This return is filed on the MCA portal and discloses outstanding payments to MSME suppliers.

Non-filing attracts a penalty of INR 20,000, with an additional INR 1,000 per day for continuing default. For the company's officers in default, the penalty is INR 20,000 to INR 5,00,000.

FEMA and RBI Compliance

April: Annual Compliance Review

While there are no FEMA-specific deadlines in April, this is the optimal month for foreign-owned companies to initiate their annual FEMA compliance review. Key items to verify:

• All FC-GPR filings for share allotments during FY 2025-26 are complete and acknowledged
• All external commercial borrowing (ECB) filings under ECB regulations are current
• Downstream investment compliance (if the subsidiary has invested in other Indian entities) is documented
• Preparation for the FLA Return due July 15 should begin — gather FDI details, overseas investment data, and borrowing information

Starting FLA Return preparation in April gives the company three months to collect data, reconcile with audited financials (if available), and address any discrepancies before the July 15 deadline. Late FLA filing attracts a penalty of up to three times the sum involved, plus INR 5,000 per day for continuing contravention.

Professional Tax

April 30: Professional Tax Return (State-Specific)

Professional Tax deadlines vary by state. Key April deadlines include:

• Maharashtra: Monthly PTRC return for March due by April 30 (or the last day of the month for monthly filers)
• Karnataka: Monthly PT payment due by April 20
• West Bengal: Monthly PT return due by April 21
• Gujarat: Monthly PT payment due by April 15

Companies with employees in multiple states must track each state's filing frequency and deadline independently. Professional Tax non-compliance is handled at the state level and can result in both monetary penalties and legal proceedings.

For newly established foreign subsidiaries that onboarded employees during FY 2025-26, April is also when PTRC registration compliance should be audited. Companies that failed to register in states where they have employees must do so immediately to avoid back-dated assessments. The registration process typically takes 7-15 days per state and requires documents including the company's PAN, certificate of incorporation, address proof, and employee details.

April Compliance Checklist for Foreign-Owned Companies

Key Takeaways

• April 7 is the first critical deadline — TDS deposited during March must reach the government by this date, with 1.5% per month interest on late deposits
• GST filings cluster between April 10-20 — GSTR-7, GSTR-1, GSTR-6, and GSTR-3B all fall in this window, making it the busiest GST compliance period alongside the year-end close
• PF and ESI deposits by April 15 carry punitive penalty structures — damages range from 5% to 25%, and prolonged delays can trigger criminal prosecution under the EPF Act
• Start FLA Return preparation in April — the July 15 deadline approaches faster than expected, and late filing penalties are severe (up to three times the sum involved)
• Reconcile advance tax payments immediately — interest under Sections 234B and 234C accrues from April 1, so identifying and paying any shortfall early reduces the interest burden

For end-to-end compliance management across all these deadlines, explore our annual compliance services designed specifically for foreign-owned companies in India.