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April 28, 2026
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BySteffy A
New TDS and TCS Forms from 1st April 2026 Guide
Introduction
Prima Facie New TDS and TCS forms under the Income Tax Act 2025 have significant changes on the reporting of TDS and TCS. The new tax deduction system and the new source of tax collected forms introduce forms that are better simplified.
These new forms of TDS and TCS supersede the old formats and therefore make it easier and more organized to comply with the Income Tax Act by the businesses and individuals.
Changes in TDS & TCS Forms from 1st April 2026
The new TDS and TCS forms under the Income Tax Act 2025 are applicable since 1st April 2026: Older forms have been substituted with new ones such as Forms 130 to 133. These are the new tax deduction system and new source of tax structure in the form of these new TDS and TCS.
The aim is to simplify TDS and TCS compliance and make it more structured. The realization of these changes assists companies in working on the new regulations of the Income Tax Act.
New TDS and TCS Forms: Exact Usage & Filing Flow (From 1 April 2026)
| Transaction Type | Old System (Before 2026) | New System (From 1 April 2026) | Trigger Point (When to Use) | Portal / Place | Who Files / Issues | Step-by-Step Practical Use |
| Salary Payment (TDS) | Return: Form 24QCertificate: Form 16 | Return: Form 138Certificate: Form 130 | When employer deducts TDS on monthly salary | Return: Income Tax e-Filing portalCertificate: TRACES | Employer | 1. Deduct TDS monthly 2. File Form 138 quarterly 3. Download Form 130 from TRACES 4. Issue to employee annually |
| Professional Fees / Contractor / Rent (TDS) | Return: Form 26QCertificate: Form 16A | Return: Form 139Certificate: Form 131 | When payment is made to vendor/professional with TDS deduction | Return: Income Tax e-Filing portalCertificate: TRACES | Deductor (Business/Individual) | 1. Deduct TDS at payment/credit 2. File Form 139 quarterly 3. Download Form 131 4. Issue to payee |
| Payment to NRI (TDS) | Return: Form 27QCertificate: Form 16A | Return: Form 140Certificate: Form 131 | When making payment to non-resident (interest, royalty, etc.) | Income Tax e-Filing + TRACES | Deductor | 1. Deduct TDS as per NRI rates 2. File Form 140 quarterly 3. Issue Form 131 to NRI |
| Property Purchase (TDS) | Form 26QB (payment) + Form 16B (certificate) | Online PAN-based filing + Form 132 | When buying immovable property (above threshold) | TIN-NSDL portal → TRACES | Buyer | 1. Deduct TDS while paying seller 2. Pay tax using PAN (no TAN) 3. Generate Form 132 from TRACES 4. Give to seller |
| Sale of Goods (TCS) | Return + Certificate: Form 27D | Return + Certificate: Form 133 | When seller collects TCS on sale (scrap, liquor, etc.) | Return: Income Tax portalCertificate: TRACES | Seller | 1. Collect TCS from buyer 2. Deposit to govt 3. File return 4. Issue Form 133 |
| TDS Return Filing (All Categories) | 24Q / 26Q / 27Q (based on section) | 138 / 139 / 140 (based on transaction type) | Every quarter after TDS deduction | Income Tax e-Filing portal | Deductor | File return with PAN, challan, deductee details |
| TCS Return Filing | Separate returns linked with Form 27D | Covered under updated structure with Form 133 linkage | Quarterly after TCS collection | Income Tax e-Filing portal | Seller/Collector | Report TCS collected and deposited |
| Certificate Download | TRACES login required for Form 16, 16A, 27D | TRACES login required for Forms 130–133 | After return processing | TRACES portal | Deductor/Seller | Login → Request form → Download → Issue |
| Correction / Revision | Correction via 24Q, 26Q, 27Q | Correction via 138, 139, 140 | When wrong PAN, amount, challan entered | Income Tax portal | Deductor | Revise return and regenerate certificates |
| Form Selection Logic | Based on section (e.g., 194C, 194J) | Based on transaction type (salary, non-salary, property, TCS) | At the time of filing return | Not portal-specific | Deductor | Identify payment type → Select correct form |
| TAN Requirement (Property Case) | Buyer must obtain TAN | TAN is not required; PAN is sufficient | At time of property TDS payment | TIN-NSDL portal | Buyer | Direct payment using PAN simplifies the process |
| Data Required in Filing | PAN, amount paid, TDS, challan no., section | Same data required | While filing return | Income Tax / TRACES | Deductor | No change in data fields; only form number changes |
Official guideline: FAQs and Guidance Notes on Forms as per Income-tax Rules, 2026
Which TDS or TCS Form to Use Now
The new TDS and TCS forms under the Income Tax Act 2025 which were implemented starting 1 st April 2026, to a great extent defines the form to be used in various transactions. In the case of salary payments, you will make use of Form 130. Form 131 applies to non-salary TDS such as professional fees, rent or contractor payments.
In property transactions, the use of Form 132 is required and in the case of TCS (tax collected source), Form 133 is needed. The new TDS and TCS forms make the new tax deduction system and source of new tax collected easier to follow and comply with.
Which TDS or TCS Form to Use Now
The new TDS and TCS forms under the Income Tax Act 2025 which were implemented starting 1 st April 2026, to a great extent defines the form to be used in various transactions. In the case of salary payments, you will make use of Form 130. Form 131 applies to non-salary TDS such as professional fees, rent or contractor payments.
In property transactions, the use of Form 132 is required and in the case of TCS (tax collected source), Form 133 is needed. The new TDS and TCS forms make the new tax deduction system and source of new tax collected easier to follow and comply with.
How to File and Issue New Forms
- Collect TCS or deduct TDS.
- File returns (Forms 138–140)
- Get new TDS and TCS forms (130-133) on TRACES.
- Grant certificates to taxpayers.
- The new TDS and TCS forms make it easier to comply with the Income Tax Act 2025.
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Conclusion
Shortly, the new TDS and TCS forms under the Income tax Act 2025 soon introduce a less confusing and more straightforward method of the new tax deduction system and the new source of tax collected.
Although the transition might be time-consuming, learning about these new versions of TDS and TCS will assist you in making errors and being in compliance with TDS and TCS regulations.
Suggested Reads:
Key changes in Income Tax Act 2025
Changes impacting salaried taxpayers
FAQ’s
1. What are the new TDS and TCS forms introduced from 1st April 2026?
The new TDS and TCS forms under the Income Tax Act 2025 include certificate forms (130, 131, 132, 133) and return forms (138, 139, and 140). These replace earlier forms such as 16, 16A, and 27D.
2. Which form is used for salary TDS in the new system?
Under the new TDS and TCS system, salary TDS certificates are issued in Form 130. Employers must file quarterly returns using Form 138 and provide Form 130 annually to employees as proof of TDS deduction.
3. Which form should be used for non-salary TDS payments?
Form 131 is used for non-salary TDS payments such as professional fees, rent, or interest. Businesses are required to file Form 139 and issue Form 131 to the deductee.
4. What is the form for TDS on property purchase?
Form 132 is used for TDS on property transactions. Buyers can deduct TDS and file details using PAN without requiring a TAN under the new system.
5. Which form is used for TCS transactions now?
Form 133 is used for all TCS certificates under the new system. Sellers must collect TCS, file returns, and issue Form 133 to buyers as proof.
6. Where are the new TDS and TCS forms filed and downloaded?
Forms 138, 139, and 140 are filed on the Income Tax portal. Certificates from Forms 130 to 133 are generated and downloaded through the TRACES portal under the new system.
7. How are the new TDS and TCS forms different from the old ones?
Earlier forms were linked to specific sections such as 194C or 206C. The new forms are based on transaction types like salary, non-salary, property, and TCS, making compliance simpler and more structured.
8. What happens if you use the wrong TDS or TCS form?
Using an incorrect form under the new system may lead to filing errors, notices, or penalties. It is important to select the correct form based on the transaction type.
9. Can Ebizfiling help with new TDS and TCS forms compliance?
Yes, Ebizfiling assists with filing new TDS and TCS forms, return filing, certificate generation, corrections, and overall compliance to ensure accurate filing and avoid penalties.
10. Why should businesses take professional help for TDS and TCS filing?
Handling new TDS and TCS forms can be complex. Ebizfiling provides end-to-end support including return filing, compliance tracking, and notice management to help businesses stay compliant with the Income Tax Act 2025.
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