12 hrs ago
TDS and TCS Statements Can Now Be Filed Directly Through TRACES
Starting in Tax Year 2026–27, people and organizations that deduct or collect tax can file their statements directly on the TRACES website.
Before, they filed through another tax website and the information was later transferred to TRACES.
The new system has four updated forms for different kinds of tax statements.
For example, one form is for salary tax and another is for certain payments to non-residents.
The usual quarterly deadlines have not changed.
Filers must provide accurate payment and recipient details and match them with tax deposits.
They also need to complete an electronic verification step.
This can make regular tax filing simpler, and accurate reporting helps taxpayers receive the right tax credit in their records.
From Tax Year 2026–27, deductors can file TDS and TCS statements directly in a dedicated compliance environment on the TRACES portal.
The new process removes the earlier step of filing through the Income Tax portal and waiting for the statement to transfer to TRACES.
Forms 138, 140, 144 and 143 replace Forms 24Q, 26Q, 27Q and 27EQ, respectively.
Quarterly filing deadlines remain 31 July, 31 October, 31 January and 31 May; second-quarter statements for July–September 2026 are due 31 October 2026.
Deductors select the form and quarter, enter or import challan and deductee details, link them, and complete electronic verification.
- Who
- Deductors and collectors filing TDS or TCS statements, including employers and other entities.
- What
- They can file statements directly through a dedicated compliance environment on the TRACES portal using new forms.
- Where
- The TRACES portal.
- When
- From Tax Year 2026–27, which began on 1 April 2026.
- Why
- The process aligns the TRACES system with the Income-tax Act, 2025 and Income-tax Rules, 2026, and removes the earlier transfer step from the Income Tax portal.
Benefits of the change
Compliance responsibilities
Filing process
Benefits of the change
Direct filing on TRACES removes the earlier step of filing through the Income Tax portal and waiting for transfer.
Compliance responsibilities
Deductors still need to select the correct statement and quarter, provide accurate details, reconcile tax deposits with challans, and complete electronic verification.
Impact on taxpayers
Benefits of the change
The updated framework is described as streamlining regular compliance for employers, payroll teams, tax practitioners and other deductors.
Compliance responsibilities
Timely and accurate reporting remains important so that taxpayers' TDS credits are correctly reflected and aligned with reported income.
Key facts
- Start date
- Tax Year 2026–27 began on 1 April 2026.
- New salary-related form
- Form 138 replaces Form 24Q.
- New resident-payment form
- Form 140 replaces Form 26Q.
- New non-resident-payment form
- Form 144 replaces Form 27Q.
- New TCS form
- Form 143 replaces Form 27EQ.
- Quarterly deadlines
- 31 July, 31 October, 31 January and 31 May for the first through fourth quarters, respectively.
- Second-quarter deadline
- Statements for July–September 2026 are due by 31 October 2026.
Quotes
Siddharth Maurya
Founder and managing director of Vibhvangal Anukulara
“The TRACES portal already directs users to a separate compliance environment for Tax Year 2026-27 onwards.”
livemint.com
Sources
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