{"id":10272,"date":"2026-04-05T17:54:47","date_gmt":"2026-04-05T17:54:47","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=10272"},"modified":"2026-04-05T19:15:46","modified_gmt":"2026-04-05T19:15:46","slug":"tds-compliance-reform","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/","title":{"rendered":"All about TDS Compliance Reform Effective from 1.04.2026"},"content":{"rendered":"<p><strong><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-6480\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/11\/TDS.png\" alt=\"TDS\" width=\"1008\" height=\"552\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/11\/TDS.png 800w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/11\/TDS-300x164.png 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2023\/11\/TDS-768x420.png 768w\" sizes=\"(max-width: 1008px) 100vw, 1008px\" \/>\u00a0<\/strong><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d2ce88c0029\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d2ce88c0029\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Understanding_about_Tax_Deducted_at_Source_Compliance_Reform_Effective_from_1st_April_2026\" title=\"Understanding about Tax Deducted at Source Compliance Reform Effective from 1st April 2026\">Understanding about Tax Deducted at Source Compliance Reform Effective from 1st April 2026<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#What_Has_Changed_Big_Picture\" title=\"What Has Changed? (Big Picture)\">What Has Changed? (Big Picture)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Practical_Impact_on_TDS_Tax_Compliance_Reform\" title=\"Practical Impact on TDS Tax Compliance Reform\">Practical Impact on TDS Tax Compliance Reform<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#New_Tax_Deducted_at_Source_Certificates\" title=\"New Tax Deducted at Source Certificates:\">New Tax Deducted at Source Certificates:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Key_TDS_Rate_Comparison%E2%80%94Tax_Deducted_at_Source_rates_Old_vs_New_provisions\" title=\"Key TDS Rate Comparison\u2014Tax\u00a0Deducted at Source rates (Old vs New provisions) \">Key TDS Rate Comparison\u2014Tax\u00a0Deducted at Source rates (Old vs New provisions) <\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-compliance-reform\/#Action_Point_of_Key_Tax_Compliance_Reform\" title=\"Action Point of Key Tax Compliance Reform \">Action Point of Key Tax Compliance Reform <\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Understanding_about_Tax_Deducted_at_Source_Compliance_Reform_Effective_from_1st_April_2026\"><\/span><span style=\"color: #000080;\"><strong>Understanding about <\/strong><strong>Tax Deducted at Source<\/strong><strong> Compliance Reform Effective from 1st April 2026<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The TDS (Tax Deducted at Source) framework has undergone a structural overhaul with the introduction of the Income Tax Act, 2025 and Income Tax Rules, 2026. This is not just a change in sections; it is a shift towards real-time, technology-driven tax compliance.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_Has_Changed_Big_Picture\"><\/span><span style=\"color: #000080;\"><strong>What Has Changed? (Big Picture)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>India\u2019s tax reporting framework is poised for a significant transformation with the proposed implementation of the Income\u2011tax Act, 2025, effective from FY 2026\u201127. The following are the big picture of change:<\/p>\n<ul>\n<li>Transition from old law \u2192 new Act with renumbered sections &amp; simplified structure<\/li>\n<li>Focus on automation, transparency, and reduced disputes<\/li>\n<li>Movement from year-end adjustments \u2192 real-time TDS accuracy<\/li>\n<\/ul>\n<p>Below are the key Tax Deducted at Source-related changes every tax professional, employer, and business should be aware of New TDS Return Forms: Under the new Act, existing Tax Deducted at Source return forms are proposed to be renumbered as follows:<\/p>\n<ul>\n<li>Salary Tax Deducted at Source Return: Form 24Q \u279d Form 138<\/li>\n<li>Non\u2011Salary Tax Deducted at Source Return: Form 26Q \u279d Form 140<\/li>\n<li>Non\u2011Resident Tax Deducted at Source Return: Form 27Q \u279d Form 144<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Practical_Impact_on_TDS_Tax_Compliance_Reform\"><\/span><span style=\"color: #000080;\"><strong>Practical Impact on TDS Tax Compliance Reform<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10273\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-1.jpeg\" alt=\"\" width=\"967\" height=\"591\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-1.jpeg 800w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-1-300x183.jpeg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-1-768x469.jpeg 768w\" sizes=\"(max-width: 967px) 100vw, 967px\" \/> <img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10274\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/rds-2.jpeg\" alt=\"\" width=\"995\" height=\"596\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/rds-2.jpeg 800w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/rds-2-300x180.jpeg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/rds-2-768x460.jpeg 768w\" sizes=\"(max-width: 995px) 100vw, 995px\" \/><\/p>\n<p><span style=\"color: #000080;\"><strong>Practical Impact on Tax Deducted at Source Compliance Reform on Taxpayers &amp; Businesses are as follows: <\/strong><\/span><\/p>\n<ul>\n<li>Increased compliance responsibility on deductees<\/li>\n<li>Higher penalties for incorrect \/ delayed Tax Deducted at Source<\/li>\n<li>Greater data matching with AIS \/ system analytics<\/li>\n<li>Impact on cash flows &amp; take-home salary<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"New_Tax_Deducted_at_Source_Certificates\"><\/span><span style=\"color: #000080;\"><strong>New Tax Deducted at Source Certificates:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10275\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-3.jpeg\" alt=\"\" width=\"939\" height=\"987\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-3.jpeg 788w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-3-286x300.jpeg 286w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/04\/tds-3-768x807.jpeg 768w\" sizes=\"(max-width: 939px) 100vw, 939px\" \/><\/p>\n<p>Corresponding changes are also proposed in Tax Deducted at Source certificates:<\/p>\n<ul>\n<li>Form 16 \u279d Form 130<\/li>\n<li>Form 16A \u279d Form 131<\/li>\n<\/ul>\n<p><em>A detailed section\u2011wise comparison of <\/em>Tax Deducted at Source<em> rates (Old vs New provisions) and Forms (existing vs proposed) is provided in the reference images. <\/em>This Means for Taxpayers &amp; organizations a streamlined and modernized compliance framework, Improved reporting clarity and standardization and Alignment with the simplified structure of the new Act<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Key_TDS_Rate_Comparison%E2%80%94Tax_Deducted_at_Source_rates_Old_vs_New_provisions\"><\/span><span style=\"color: #000080;\"><strong>Key TDS Rate Comparison\u2014Tax\u00a0Deducted at Source<em> rates (Old vs New provisions) <\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table>\n<thead>\n<tr>\n<td><strong>Nature of Payment<\/strong><\/td>\n<td><strong>Old Provision (1961 Act)<\/strong><\/td>\n<td><strong>TDS Rate<\/strong><\/td>\n<td><strong>New Provision (2025 Act)<\/strong><\/td>\n<td><strong>TDS Rate<\/strong><\/td>\n<td><strong>Key Change<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Salary<\/td>\n<td>Sec 192<\/td>\n<td>Slab rates<\/td>\n<td>Corresponding section<\/td>\n<td>Slab rates<\/td>\n<td>No change (better reporting)<\/td>\n<\/tr>\n<tr>\n<td>Interest (other than securities)<\/td>\n<td>Sec 194A<\/td>\n<td>10%<\/td>\n<td>Rationalised section<\/td>\n<td>10%<\/td>\n<td>Thresholds streamlined<\/td>\n<\/tr>\n<tr>\n<td>Contractor Payments<\/td>\n<td>Sec 194C<\/td>\n<td>1% \/ 2%<\/td>\n<td>Simplified contractor provision<\/td>\n<td>1% \/ 2%<\/td>\n<td>Classification clarity<\/td>\n<\/tr>\n<tr>\n<td>Professional Fees<\/td>\n<td>Sec 194J<\/td>\n<td>10%<\/td>\n<td>Merged \/ simplified provision<\/td>\n<td>10%<\/td>\n<td>Reduced disputes<\/td>\n<\/tr>\n<tr>\n<td>Commission \/ Brokerage<\/td>\n<td>Sec 194H<\/td>\n<td>5%<\/td>\n<td>Rationalised section<\/td>\n<td>5%<\/td>\n<td>Structural simplification<\/td>\n<\/tr>\n<tr>\n<td>Rent (Land\/Building)<\/td>\n<td>Sec 194I<\/td>\n<td>10%<\/td>\n<td>Simplified rent provision<\/td>\n<td>10%<\/td>\n<td>Uniformity improved<\/td>\n<\/tr>\n<tr>\n<td>Rent (Plant &amp; Machinery)<\/td>\n<td>Sec 194I<\/td>\n<td>2%<\/td>\n<td>Same concept retained<\/td>\n<td>2%<\/td>\n<td>No major change<\/td>\n<\/tr>\n<tr>\n<td>Purchase of Goods<\/td>\n<td>Sec 194Q<\/td>\n<td>0.1%<\/td>\n<td>Continued with simplification<\/td>\n<td>0.1%<\/td>\n<td>Compliance ease<\/td>\n<\/tr>\n<tr>\n<td>Sale of Property<\/td>\n<td>Sec 194IA<\/td>\n<td>1%<\/td>\n<td>PAN-based simplified system<\/td>\n<td>1%<\/td>\n<td>Process simplified<\/td>\n<\/tr>\n<tr>\n<td>Cash Withdrawal<\/td>\n<td>Sec 194N<\/td>\n<td>2% \/ 5%<\/td>\n<td>Continued<\/td>\n<td>2% \/ 5%<\/td>\n<td>Monitoring strengthened<\/td>\n<\/tr>\n<tr>\n<td>Dividend<\/td>\n<td>Sec 194<\/td>\n<td>10%<\/td>\n<td>Rationalised<\/td>\n<td>10%<\/td>\n<td>No rate change<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Action_Point_of_Key_Tax_Compliance_Reform\"><\/span><span style=\"color: #000080;\"><strong>Action Point of Key Tax Compliance Reform <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Organizations should proactively update their payroll systems, compliance software, SOPs, and documentation to ensure a smooth transition once the new provisions are notified. <em>These changes are based on the proposed Income\u2011tax Act, 2025 and will be applicable subject to final enactment and official notifications.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Understanding about Tax Deducted at Source Compliance Reform Effective from 1st April 2026 The TDS (Tax Deducted at Source) framework has undergone a structural overhaul with the introduction of the Income Tax Act, 2025 and Income Tax Rules, 2026. This is not just a change in sections; it is a shift towards real-time, technology-driven &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1285],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10272"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=10272"}],"version-history":[{"count":2,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10272\/revisions"}],"predecessor-version":[{"id":10277,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10272\/revisions\/10277"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=10272"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=10272"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=10272"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}