Upcoming Amendments to Tax Deducted at Source Forms from April 1, 2026
Revised TDS and TCS Forms to Come into Effect from April 1
The introduction of the Income-tax Act, 2025 and corresponding Income-tax Rules, 2026 will bring significant changes to the Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) forms. From April 1, revised TDS and TCS forms will come into effect, aligning with the new provisions and simplifying the filing process.
The changes include the renumbering of forms to reflect the new provisions, removal of redundant fields, and simplification through features such as auto-population of data. Sumeet Hemkar, Partner, Deloitte India, highlights the need for these changes, which aim to improve the user experience and ease of filing.
Comparison of Old and New Forms
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| Form Number | Old Form Number | Description |
|---|---|---|
| 138 | 24Q | TDS on Salary |
| 140 | 26Q | TDS on Non-Salary Payments |
| 144 | 27Q | TDS on Non-Resident Payments |
| 143 | 27EQ | Tax Collected at Source (TCS) |
| 141 (Schedule A) | 26QC | Rent Payments to Residents |
| 141 (Schedule B) | 26QB | Payments to Resident Transferor |
| 141 (Schedule C) | 26QD | Payments to Resident Contractors and Professionals |
| 141 (Schedule D) | 26QE | Payments to Resident for Transfer of Virtual Digital Assets |
Key Changes in Revised Forms
TDS on Salary (Form 138)
- Replacement of outdated fields, such as Token No. with Return Receipt Number and deletion of TAN Registration No.
- Streamlined reporting by consolidating tax, surcharge, and cess within a single column
- Auto-population of data from the deductor's/collector's TRACES profile
- Real-time validations and error handling
- Check box-based smart verification
- Standardisation of name and address fields
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TDS on Non-Salary Payments (Form 140)
- Removal of redundant fields
- Simplification through auto-population of data and real-time validations
- Consolidated reporting for same-status parties
TDS on Non-Resident Payments (Form 144)
- Removal of redundant fields
- Simplification through auto-population of data and real-time validations
- Consolidated reporting for same-status parties
Tax Collected at Source (TCS) (Form 143)
- Removal of redundant fields
- Simplification through auto-population of data and real-time validations
- Consolidated reporting for same-status parties
Other Changes
- TDS rules for property purchases from NRIs have been revised, allowing buyers to deduct TDS using their own PAN.
- Tax Collected at Source (TCS) on foreign tours has been reduced to a flat 2 percent on total cost.
- TCS for education and medical expenses abroad has also been reduced to 2 percent on amounts above Rs 10 lakh.
These changes aim to simplify the TDS and TCS filing process, making it easier for individuals and businesses to comply with tax regulations.
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