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June 23, 2026
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BySteffy A
New TDS and TCS Forms from 1st April 2026 Guide
Introduction
Prima Facie the 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: Transition & Mapping
|
Transaction Type |
Compliance Purpose |
Old System |
New System |
|
Salary Payments |
Quarterly TDS return and employee TDS certificate | Form 24Q + Form 16 |
Form 138 + Form 130 |
|
Resident Contractor Payments |
TDS return and certificate for contractor payments | Form 26Q + Form 16A |
Form 140 + Form 131 |
|
Professional Fees to Residents |
TDS return and certificate for professional services | Form 26Q + Form 16A |
Form 140 + Form 131 |
|
Rent Payments to Residents (Business Deductors) |
TDS return and certificate for rent payments | Form 26Q + Form 16A |
Form 140 + Form 131 |
|
Commission and Brokerage Payments |
TDS return and certificate | Form 26Q + Form 16A |
Form 140 + Form 131 |
|
Interest Payments to Residents |
TDS return and certificate | Form 26Q + Form 16A |
Form 140 + Form 131 |
|
Payments to Non-Residents (NRI/Foreign Entities) |
TDS return and certificate for cross-border payments | Form 27Q + Form 16A |
Form 144 + Form 131 |
|
Purchase of Immovable Property |
TDS statement-cum-challan and certificate | Form 26QB + Form 16B | Form 141 (Schedule B) + Form 132 |
| Rent Payment by Individual/HUF (Section 194-IB equivalent) | TDS statement-cum-challan and certificate | Form 26QC + Form 16C |
Form 141 (Schedule A) + Form 132 |
|
Contractor/Professional Payment by Individual/HUF (Section 194M equivalent) |
TDS statement-cum-challan and certificate | Form 26QD + Form 16D | Form 141 (Schedule C) + Form 132 |
| Transfer of Virtual Digital Assets (Crypto) | TDS statement-cum-challan and certificate | Form 26QE + Form 16E |
Form 141 (Schedule D) + Form 132 |
|
Sale of Goods Subject to TCS |
TCS return and buyer certificate | Form 27EQ + Form 27D | Form 143 + Form 133 |
| TDS Return Filing (Quarterly Compliance) | Reporting all TDS deductions to the department | Forms 24Q, 26Q, 27Q |
Forms 138, 140, 144 |
|
TCS Return Filing (Quarterly Compliance) |
Reporting all TCS collections to the department | Form 27EQ | Form 143 |
| TDS Certificate Generation | Issuance of tax deduction certificates to deductees | Forms 16, 16A, 16B, 16C, 16D, 16E |
Forms 130, 131, 132 |
|
TCS Certificate Generation |
Issuance of tax collection certificates to buyers | Form 27D | Form 133 |
| Lower/Nil TDS Certificate Application | Request for reduced or nil TDS deduction | Form 13 |
Form 128 |
|
Foreign Remittance Reporting |
Compliance for specified overseas remittances | Form 15CA & Form 15CB | Form 145 & Form 146 |
| Annual Tax Credit Statement | Verification of TDS/TCS credits by taxpayer | Form 26AS |
Form 168 |
|
Return Corrections/Revisions |
Rectification of filing errors | Revised Forms 24Q, 26Q, 27Q, 27EQ | Revised Forms 138, 140, 143, 144 |
| Tax Deposit for TDS/TCS | Payment of deducted/collected tax to Government | Challan ITNS 281 |
Challan ITNS 281N |
Note: The Income-tax Act, 2025 replaces the Income-tax Act, 1961 effective from 1st April, 2026 and introduces a revised numbering system for several TDS, TCS, certificate, statement, and reporting forms. The underlying compliance requirements generally continue, while the form references have been reorganized under the new legislation.
Looking for the Complete Transaction-Wise Compliance Mapping?
The table above highlights the key form changes under the Income Tax Act, 2025. For a detailed understanding of Transaction Type, Old Forms, New Forms, Tax Payment Challans, Trigger Points, Filing Portals, Responsible Persons, and Step-by-Step Practical Compliance Procedures, download our detailed PDF guide.
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.
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
New Provisions of TDS on purchased Goods
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.
Updated TDS & TCS Forms You Must Know in 2026
Learn what’s changed and how to file correctly under the new rules.
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