Income Tax Compliance · Delhi, India
Governed by Income Tax Act, 2025 & Income Tax Rules, 2026 — Effective 1 April 2026
TDS Return Filing
Services in India
End-to-end TDS and TCS return preparation and filing by experienced Chartered Accountants — fully updated for the Income Tax Act, 2025. Accurate payment codes, zero mismatches in Form 168, and timely quarterly submissions across all form types.
Overview
What is TDS & the Income Tax Act, 2025
Tax Deducted at Source (TDS) is a mechanism where tax is collected at the point of income before it reaches the recipient. Every deductor must file quarterly TDS statements with the Income Tax Department. From 1 April 2026, all TDS/TCS compliance is governed exclusively by the Income Tax Act, 2025, which repealed and replaced the Income Tax Act, 1961 — with new sections, new form numbers, and new payment codes.
Mandatory Quarterly Filing
Every employer, company, firm, or individual deductor must file TDS returns each quarter under Chapter 19 — Income Tax Act, 2025.
Governed by ITA 2025
The 1961 Act was repealed on 31 March 2026. All transactions on or after 1 April 2026 are governed by the Income Tax Act, 2025 and Income Tax Rules, 2026.
Feeds Deductee's Form 168
Correctly filed TDS returns populate the deductee's Form 168 (old: 26AS) — Annual Tax Information Statement — enabling them to claim TDS credit in their own return.
Strict Penalty Framework
Late filing: ₹200/day under Sec. 427 (old: 234E). Non-filing beyond one month: penalty under Sec. 461 (old: 271H). Prosecution possible for non-deposit.
Return Types
TDS & TCS Return Types — ITA 2025
The correct return form depends on the nature of payment and the status of the payee. Under the Income Tax Act, 2025 and Income Tax Rules, 2026, all return form numbers have changed. Select a category below to explore the applicable return types, sections, and payment codes.
Form 138 (old: 24Q) · Section 392 · Rule 219
Quarterly TDS Return — Salary Payments
Section 392, ITA 2025 · Filed by all employers every quarter
Employee Declaration: From Tax Year 2026-27, employees must submit investment declarations in Form 124 (old: Form 12BB). Form 121 (old: 15H) applies for senior citizen employees declaring nil tax liability. The employer must factor in the declared tax regime (old / new) and deduct TDS accordingly under Section 392.
Form 140 (old: 26Q) · Section 393(1) · Rule 219
Quarterly TDS Return — Non-Salary Payments to Residents
Section 393(1), ITA 2025 · Covers all resident payees except salary
Form 144 (old: 27Q) · Section 393(2) · Rule 220
Quarterly TDS Return — Payments to Non-Residents & Foreign Companies
Section 393(2), ITA 2025 · CBDT guidelines mandatory under Sec. 400(2)
Foreign Remittance Forms (ITA 2025): For remittances made on / after 1 April 2026, use Form 145 (old: 15CA) for remitter's declaration and Form 146 (old: 15CB) for the CA certificate. Governed by Section 397(3)(d) read with Rule 220 of Income Tax Rules, 2026.
Form 143 (old: 27EQ) · Section 394 · Rule 219
Quarterly TCS Return — Tax Collected at Source
Section 394, ITA 2025 · Filed by collectors (sellers/operators)
Special Purpose Forms — ITA 2025 & IT Rules, 2026
Our Process
How We File Your TDS Returns
A structured, technology-driven process — fully updated for the Income Tax Act, 2025. We handle everything from data collection to PRN receipt, with correct Section 393 payment codes and updated TRACES workflows every quarter.
Data Collection & Document Gathering
We collect all transaction data — deductee PAN details, payment amounts, TDS deducted, and challan deposit particulars. For Tax Year 2026-27 onwards, we also capture the correct Section 393 payment code (1001–1067) for every transaction type.
PAN Verification & Higher-Rate Screening
All deductee PANs are verified against the Income Tax database. We flag invalid or missing PANs (attracts 20% TDS) and run the higher-TDS-rate check for non-filers of ITR — mandatory under ITA 2025. Section 393(7) covers cases where PAN is inoperative due to non-linkage with Aadhaar.
Challan Reconciliation with OLTAS
Every challan's BSR code, challan serial number, deposit date, and amount are reconciled against OLTAS records on the TIN-NSDL system. Mismatches are resolved before return preparation — ensuring zero challan-mismatch errors in the deductee's Form 168 (old: 26AS).
Return Preparation — Updated RPU (ITA 2025)
The return is prepared using the updated Return Preparation Utility (RPU) aligned with ITA 2025 and IT Rules, 2026. We use correct Section 393 payment codes — not the old 194-series section numbers — across Form 138, 140, 143, and 144. All deductee annexures and challan allocations are validated.
FVU Validation — Zero Errors Before Filing
The prepared file is validated through the updated File Validation Utility (FVU). Any structural or data errors are corrected before submission. A pre-filing summary is sent to you for review and written approval.
Online Submission & PRN Acknowledgement
The validated return is filed via the Income Tax e-filing portal / TIN-NSDL system. You receive the Token Number and Provisional Receipt Number (PRN) confirming successful submission — typically within 24 hours of data finalisation.
When is a Correction Statement needed? A correction statement (revised return) is required when errors exist in an already-accepted TDS return — such as wrong PAN, incorrect challan details, wrong payment code under Section 393, or a missed deductee. Under ITA 2025, the process remains TRACES-based but uses updated form numbers (138, 140, 143, 144).
Identify the Correction Type
We determine the correction category based on the error: C1 — deductor details · C2 — challan details · C3 — deductee details (incl. wrong payment code) · C4 — salary annexure · C5 — PAN update · C9 — addition of new challan or deductee entry.
Download Consolidated File from TRACES
The consolidated TDS / TCS file — the mandatory base for preparing any correction — is downloaded from the TRACES portal. Requires valid TRACES login credentials, TAN, and DSC or OTP authentication. This file contains all accepted data from the original return.
Prepare Correction in Updated RPU
Corrections are made in the updated RPU using the consolidated base file. For returns originally filed under old section codes (pre-April 2026), we also migrate payment codes to the new ITA 2025 format (1001–1067) during correction to ensure TRACES compliance.
FVU Validate & File Correction Online
The corrected statement is FVU-validated and filed online. You receive a new PRN for the correction statement. TRACES updates Form 168 of the relevant deductees within 3–7 working days of acceptance.
Form 130 (old: Form 16)
Salary TDS Certificate under Section 395, ITA 2025. Generated from TRACES after filing Form 138. Contains TAN, employee PAN, quarterly TDS breakup and BSR details. Mandatory for all salaried employees — due by 15 June each year.
Form 131 (old: Form 16A)
Non-salary TDS Certificate under Section 395(4), ITA 2025. Downloaded from TRACES after filing Form 140 (residents) or Form 144 (NRIs). Issued quarterly to each deductee. Essential for claiming TDS credit in their income tax return.
Form 133 (old: Form 27D)
TCS Certificate under Section 394, ITA 2025. Generated from TRACES after filing Form 143. Issued to the buyer or collectee within 15 days from the due date of TCS return. We handle generation and distribution.
Form 121 (old: Forms 15G + 15H — merged)
Nil TDS Declaration under Section 393(6), ITA 2025. Single merged form replacing the old 15G (below 60 yrs) and 15H (senior citizens 60+ yrs). Submitted by the payee to the deductor at the start of the financial year. Invalid forms may lead to excess TDS deduction.
Form 128 (old: Form 13)
Lower / Nil Deduction Certificate under Section 395, ITA 2025. Applied by the payee via TRACES / e-filing portal to the Assessing Officer. Certificates issued under old Sec. 197 remain valid for Tax Year 2026-27 if validly issued for that period.
Form 168 (old: Form 26AS)
Annual Tax Information Statement — the master credit statement for the deductee. Updated by TRACES when TDS returns are accepted. Accurate return filing is the only way to ensure the deductee's Form 168 reflects the correct TDS credit.
📅 Certificate Due Dates (ITA 2025): Form 130 (salary) — by 15 June · Form 131 / Form 133 — within 15 days from the quarterly return due date · Form 121 — submitted by payee at the beginning of each financial year. Delay in issuance attracts penalty under Section 461.
Deadlines & Consequences
TDS / TCS Due Dates & Penalties — ITA 2025
Filing deadlines remain unchanged under the Income Tax Act, 2025 — but the penalty section references have changed. Section 427 (old: 234E) levies ₹200/day automatically from the day after the due date. The fee must be deposited before filing a belated return.
| Quarter | Period (Tax Year) | Applicable Return Forms | Deductors — Due Date | Govt. Deductors |
|---|---|---|---|---|
| Q1 | April – June | Form 138 Form 140 Form 143 Form 144 | 31 July | 15 July |
| Q2 | July – September | Form 138 Form 140 Form 143 Form 144 | 31 October | 15 October |
| Q3 | October – December | Form 138 Form 140 Form 143 Form 144 | 31 January | 15 January |
| Q4 | January – March | Form 138 Form 140 Form 143 Form 144 | 31 May | 15 May |
Monthly TDS Deposit Deadlines
| Deductor Type | Month of Deduction | Deposit Deadline | Challan / Mode |
|---|---|---|---|
| Non-Government (Companies, Firms, Individuals) | April – February | 7th of following month | ITNS 281 — online (mandatory for companies) |
| Non-Government (Companies, Firms, Individuals) | March | 30 April | ITNS 281 — online |
| Government Deductors — With Challan | Any month | 7th of following month | ITNS 281 — via PAO |
| Government Deductors — Without Challan (Book Entry) | Any month | Same day of deduction | Form 137 (old: 24G) — book adjustment |
| Buyer — Immovable Property (Form 141) | At time of payment | 30 days from end of month | Form 141 (old: 26QB/QC/QD) — online |
| Individual / HUF — Rent > ₹50,000/month | Last month of tenancy / March | 30 days from end of month | Form 141 (old: 26QC) — online |
TDS / TCS Certificate Issuance Deadlines
| Certificate (New Form) | Old Form | Frequency | Due Date |
|---|---|---|---|
| Form 130 — Salary TDS Certificate | Form 16 | Annual (Q4) | 15 June (of following year) |
| Form 131 — Non-Salary TDS Certificate | Form 16A | Quarterly | 15 days from return due date |
| Form 133 — TCS Certificate | Form 27D | Quarterly | 15 days from return due date |
| Form 132 — TDS Cert. (Immovable Property) | Form 16B / 16C | Per transaction | 15 days from challan (Form 141) due date |
Penalties for Non-Compliance — Income Tax Act, 2025
Late Filing Fee — ₹200 Per Day
Accrues automatically from the day after the due date until the return is filed. The total fee cannot exceed the total TDS / TCS amount for that quarter. Must be deposited before the portal accepts the belated return.
Penalty — ₹10,000 to ₹1,00,000
Levied if the return is not filed within one month from the due date (tightened from one year under the old Act). Also applicable for returns filed with materially incorrect information. Levied in addition to Section 427 fee.
Interest on Late Deduction / Deposit
1% per month (or part thereof) from the date TDS was deductible to the date of actual deduction. 1.5% per month from date of deduction to date of deposit with the government. Simple interest, calculated monthly.
Expense Disallowance — 30%
If TDS is not deducted or not deposited by due date of filing the return of income, 30% of the related expenditure is disallowed while computing taxable income — significantly increasing the tax payable for that Tax Year.
Prosecution Risk — ITA 2025 (Old: Section 276B)
Failure to deposit TDS after deduction is a criminal offence under the Income Tax Act, 2025. Prosecution can result in rigorous imprisonment from 3 months to 7 years, plus a fine — regardless of the amount involved. The deductor is simultaneously treated as an "assessee in default" under Section 393(8), attracting interest until the full amount is paid.
Requirements
Documents Required for TDS Return Filing
Share the following details at the start of each quarter. For Tax Year 2026-27 filings, please also note the applicable Section 393 payment code for each transaction type, and ensure Form 124 (old: 12BB) is used for employee declarations.
Deductor Details
One-time setup — shared once
- TAN (Tax Deduction Account Number) — continues unchanged under ITA 2025
- PAN of the deductor entity
- Deductor category, full name & address
- Responsible person's PAN, name & designation
- TRACES login credentials for Form 130 / 131 / 133 certificate download (old: Form 16 / 16A / 27D)
- DSC (Digital Signature Certificate) or mobile OTP for TRACES authentication
Challan / TDS Deposit Details
Per month within the quarter
- Challan serial number (ITNS 281) for each TDS deposit
- BSR Code of the bank branch
- Date of deposit with the government
- Breakup of deposited amount: TDS, surcharge, education cess & interest (if any) separately
- Nature of payment — Section 393 payment code (1001–1067) for each challan (from Tax Year 2026-27)
- Minor head code (200 = TDS payable / 400 = TDS on regular assessment)
Deductee Details
Per payee — every transaction
- PAN of each deductee — vendor, contractor, employee, or NRI
- Full name and address of each deductee
- Amount paid or credited to each deductee
- TDS deducted amount per transaction
- Date of payment or credit — whichever is earlier
- Section 393 payment code applicable to each payment type
- Form 121 (old: 15G / 15H) — if deductee has submitted nil TDS declaration under Sec. 393(6)
- Form 128 (old: Form 13) — if deductee holds a lower deduction certificate under Sec. 395
Salary TDS — Form 138 (old: 24Q) · Sec. 392
Additional requirements — especially Q4
- Monthly salary register for the quarter
- Employee's tax regime selection — old regime or new regime; Form 10-IEA if opting out of default new regime
- Investment proof & declarations — Form 124 (old: Form 12BB) submitted by each employee
- Perquisites, taxable allowances & reimbursement details
- For foreign-currency salary: SBI telegraphic transfer buying rate on date of deduction (explicitly required under ITA 2025)
- Previous employer's salary & TDS details — if employee joined mid-year
- Form 39 (old: Form 10E) — for employees claiming salary arrears relief under Section 89, ITA 2025
NRI / Foreign Payments — Form 144 (old: 27Q) · Sec. 393(2)
Additional requirements for cross-border payments
- Nature of payment to NRI — interest, royalty, FTS, dividend, capital gain
- DTAA / Double Tax Avoidance Agreement details — country, article, applicable rate
- Tax Residency Certificate (TRC) issued by foreign government — to claim DTAA benefit
- Form 10F — self-declaration by NRI if TRC does not contain all required details
- Form 145 (old: 15CA) — remitter's online declaration for foreign remittance under Sec. 397(3)(d)
- Form 146 (old: 15CB) — CA certificate for taxable remittances exceeding ₹5 lakh
Special Cases — Form 141 & TCS (Form 143)
Property purchase, rent, VDA & TCS transactions
- Immovable property purchase: sale deed / agreement, seller PAN, consideration amount (Form 141 — old: 26QB)
- Rent above ₹50,000/month by individual/HUF: landlord PAN, rental agreement (Form 141 — old: 26QC)
- VDA / Crypto purchase: transaction details, platform name, VDA type (Form 141 — old: 26QE)
- TCS — sale of goods, motor vehicle, LRS remittance, overseas tour: buyer PAN, transaction amount & date
- For LRS / overseas tour TCS: banker / tour operator details, remittance purpose code
Frequently Asked Questions — Income Tax Act, 2025
Why Choose Us
Why Businesses Trust Gupta Chandan Associates
The transition to the Income Tax Act, 2025 brings new form numbers, new payment codes, and tighter penalty timelines. Our CA team is fully prepared — updated RPU, correct Section 393 codes, and TRACES workflows calibrated for ITA 2025 from day one.
ITA 2025 Ready — From Day One
We file with correct Section 393 payment codes (1001–1067), updated form numbers (138, 140, 143, 144), and ITA 2025-aligned RPU — zero migration errors guaranteed.
Never Miss a Deadline
Systematic calendar-based tracking for all four quarters. Returns are prepared and filed well before the due date — every single quarter, without exception.
Zero-Error Filing
PAN validation, Aadhaar-link operability check, OLTAS challan matching, and FVU validation — all completed before submission. No mismatches in deductee's Form 168.
Qualified CA Team
All returns are reviewed by experienced Chartered Accountants with deep knowledge of ITA 2025, DTAA applicability, TRACES workflows, and correction statement procedures.
Proactive Reminders
We alert you on upcoming due dates, document requirements, and new compliance updates — well in advance. Section 427 late fees are never incurred by our clients.
Data Security & Confidentiality
Strict confidentiality for all payroll and vendor data. Secure file handling, single-point access control, and complete privacy of your financial information at every stage.
filing experience
industries
handled (138 · 140 · 143 · 144)
track record
incurred by clients
File Your TDS Returns with
Confidence — Under ITA 2025
Leave the new Act's complexity to us. Correct section codes, accurate form numbers, zero errors — every quarter. Speak to our team today for a free consultation.
