Taxpayers in India must navigate a busy schedule in May 2026 with several critical compliance deadlines. The first major deadline is on May 7, when all Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) for April 2026 must be deposited. This is followed by the issuance of TDS certificates for March 2026 by May 15. The month concludes with final deadlines on May 30, including the distribution of TCS certificates for the fourth quarter of the 2025-26 fiscal year and other important submissions under the Income Tax Act.

In terms of fiscal performance, India's net direct tax collections increased by 5.12%, surpassing ₹23.40 lakh crore for the fiscal year 2025-26. However, this figure fell short of the revised target of ₹24.21 lakh crore, which was adjusted down from an initial estimate of ₹25.20 lakh crore following significant income tax reductions introduced in the February 2025 budget. Finance Minister Nirmala Sitharaman's reforms included raising the tax rebate threshold to ₹12 lakh and adjusting tax slabs, which contributed to the subdued performance in tax collection.