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TDS & TCS compliance

TDS & TCS returns on the new 2026 forms

Monthly deposits, quarterly returns on Forms 138, 140, 143 and 144, certificates to employees and vendors, and TRACES defaults cleared before they turn into notices.

Forms 138, 140, 143, 144
Form 130 / 131 certificates
TRACES defaults cleared

Reviewed by CA Prabhakar Kumar, FCA · Updated

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New forms from 1 April 2026

For deductions and collections from 1 April 2026, returns are filed under the Income-tax Act, 2025 on new forms. Old forms continue only for periods up to 31 March 2026, including corrections.

PurposeUp to 31 March 2026From 1 April 2026
TDS on salary (quarterly)Form 24QForm 138
TDS on other payments to residentsForm 26QForm 140
TCS (quarterly)Form 27EQForm 143
TDS on payments to non-residentsForm 27QForm 144
Salary TDS certificateForm 16Form 130
Non-salary TDS certificateForm 16AForm 131
Employee investment declarationForm 12BBForm 124

Compliance calendar

WhatDue date
Deposit of TDS/TCS7th of the following month (TDS for March: 30 April)
Q1 return (April–June)31 July
Q2 return (July–September)31 October
Q3 return (October–December)31 January
Q4 return (January–March)31 May

Late returns attract a fee of ₹200 per day, capped at the tax deducted, and late deposit attracts interest. Deducting less than required, or deducting and not depositing, can also disallow the expense in your own return.

What we handle

  • TAN registration and TRACES set-up.
  • Section and rate mapping for vendor payments: contractors, professionals, rent, commission, purchase of goods and property.
  • Monthly challans and quarterly returns; salary TDS computation with regime choice.
  • Certificates to employees and vendors.
  • Correction statements, PAN errors, short deduction and late payment defaults on TRACES.
  • Lower or nil deduction certificates for your business (section 395, Form 128).

Clearing TRACES defaults

  1. Download the justification report for the quarter.
  2. Identify the cause: invalid PAN, short deduction, late payment or challan mismatch.
  3. File a correction statement, or pay interest and late fee where the default is genuine.
  4. Recheck the default summary after processing.

Rates and thresholds by payment type are in the TDS calculator.

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FAQs

Frequently asked questions

What is Form 138?
Form 138 is the quarterly TDS statement for salary under the Income-tax Act, 2025, replacing Form 24Q for deductions made from 1 April 2026.
What is the due date for TDS returns?
31 July, 31 October, 31 January and 31 May for the four quarters. TDS must be deposited by the 7th of the following month, and by 30 April for March.
What is the late fee for TDS returns?
₹200 per day of delay, capped at the amount of tax deducted for that statement. Penalty can also apply for failure to file.
Should corrections for FY 2025-26 be filed on new forms?
No. Corrections for periods up to 31 March 2026 are filed on the old forms such as 24Q and 26Q.
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