{"id":10872,"date":"2026-07-27T18:43:47","date_gmt":"2026-07-27T18:43:47","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=10872"},"modified":"2026-07-27T19:00:06","modified_gmt":"2026-07-27T19:00:06","slug":"tds-tcs-significant-transformation-in-income-tax-act-2025","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/","title":{"rendered":"TDS\/TCS significant transformation in Income-tax Act, 2025"},"content":{"rendered":"<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-10868\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/07\/Transition-of-TDS-TCS-Provisions-from-Income-tax-act-1961-Vs-2025.-.png\" alt=\"Transition of TDS\/TCS Provisions from Income tax act 1961 Vs 2025\" width=\"1536\" height=\"800\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/07\/Transition-of-TDS-TCS-Provisions-from-Income-tax-act-1961-Vs-2025.-.png 1536w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/07\/Transition-of-TDS-TCS-Provisions-from-Income-tax-act-1961-Vs-2025.--300x156.png 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/07\/Transition-of-TDS-TCS-Provisions-from-Income-tax-act-1961-Vs-2025.--1024x533.png 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/07\/Transition-of-TDS-TCS-Provisions-from-Income-tax-act-1961-Vs-2025.--768x400.png 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/07\/Transition-of-TDS-TCS-Provisions-from-Income-tax-act-1961-Vs-2025.--800x417.png 800w\" sizes=\"(max-width: 1536px) 100vw, 1536px\" \/><\/h2>\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-6a67d665966ed\" 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-6a67d665966ed\"  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-tcs-significant-transformation-in-income-tax-act-2025\/#Latest_changes_TDSTCS_significant_transformation_Income_Tax_Act_2025\" title=\"Latest changes: TDS\/TCS significant transformation Income Tax Act, 2025\">Latest changes: TDS\/TCS significant transformation Income Tax Act, 2025<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Major_Structural_Changes_under_the_New_Framework\" title=\"Major Structural Changes under the New Framework\">Major Structural Changes under the New Framework<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Rule_218_%E2%80%93_Time_and_Mode_of_Tax_Payment\" title=\"Rule 218 \u2013 Time and Mode of Tax Payment\">Rule 218 \u2013 Time and Mode of Tax Payment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Major_Relief_TCS_Due_Date_Alignment\" title=\"Major Relief: TCS Due Date Alignment\">Major Relief: TCS Due Date Alignment<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Form_137_%E2%80%93_Replacement_of_Form_24G\" title=\"Form 137 \u2013 Replacement of Form 24G\">Form 137 \u2013 Replacement of Form 24G<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Rule_219_%E2%80%93_Quarterly_TDSTCS_Reporting_Framework\" title=\"Rule 219 \u2013 Quarterly TDS\/TCS Reporting Framework\">Rule 219 \u2013 Quarterly TDS\/TCS Reporting Framework<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#New_Quarterly_Forms\" title=\"New Quarterly Forms\">New Quarterly Forms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Quarterly_Due_Dates\" title=\"Quarterly Due Dates\">Quarterly Due Dates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#New_Tax_Year_Concept\" title=\"New Tax Year Concept\">New Tax Year Concept<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Form_138_%E2%80%93_Replacement_of_Form_24Q\" title=\"Form 138 \u2013 Replacement of Form 24Q: \">Form 138 \u2013 Replacement of Form 24Q: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Form_139_%E2%80%93_Refund_of_Excess_TDSTCS\" title=\"Form 139 \u2013 Refund of Excess TDS\/TCS: \">Form 139 \u2013 Refund of Excess TDS\/TCS: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Form_140_%E2%80%93_Replacement_of_Form_26Q\" title=\"Form 140 \u2013 Replacement of Form 26Q : \">Form 140 \u2013 Replacement of Form 26Q : <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Form_140_Flag_System\" title=\"Form 140 Flag System\">Form 140 Flag System<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Form_141_%E2%80%93_Single_Challan-Cum-Statement\" title=\"Form 141 \u2013 Single Challan-Cum-Statement\">Form 141 \u2013 Single Challan-Cum-Statement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Form_142_%E2%80%93_VDA_Reporting_Framework\" title=\"Form 142 \u2013 VDA Reporting Framework: \">Form 142 \u2013 VDA Reporting Framework: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Form_143_%E2%80%93_Replacement_of_Form_27EQ\" title=\"Form 143 \u2013 Replacement of Form 27EQ\">Form 143 \u2013 Replacement of Form 27EQ<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Form_144_%E2%80%93_Replacement_of_Form_27Q\" title=\"Form 144 \u2013 Replacement of Form 27Q\">Form 144 \u2013 Replacement of Form 27Q<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Rule_220_%E2%80%93_Foreign_Remittance_Reporting\" title=\"Rule 220 \u2013 Foreign Remittance Reporting: \">Rule 220 \u2013 Foreign Remittance Reporting: <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Additional_Improvements_TIN_capture_electronic_filing_ITBA_integration_and_a_7-day_withdrawal_facility\" title=\"Additional Improvements: TIN capture, electronic filing, ITBA integration, and a 7-day withdrawal facility. \">Additional Improvements: TIN capture, electronic filing, ITBA integration, and a 7-day withdrawal facility. <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#New_Compliance_Cycle_Under_the_2025_Framework\" title=\"New Compliance Cycle Under the 2025 Framework\">New Compliance Cycle Under the 2025 Framework<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#New_Form_Mapping\" title=\"New Form Mapping\">New Form Mapping<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#New_Section_Mapping_Under_the_Income_Tax_Act_2025\" title=\"New Section Mapping Under the Income Tax Act, 2025\">New Section Mapping Under the Income Tax Act, 2025<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#TCS_Rate_Chart_under_Income-tax_Act_2025_FY_2026-27\" title=\"TCS Rate Chart under Income-tax Act, 2025 (FY 2026-27)\">TCS Rate Chart under Income-tax Act, 2025 (FY 2026-27)<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.caindelhiindia.com\/blog\/tds-tcs-significant-transformation-in-income-tax-act-2025\/#Final_Thoughts\" title=\"Final Thoughts\">Final Thoughts<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Latest_changes_TDSTCS_significant_transformation_Income_Tax_Act_2025\"><\/span><span style=\"color: #000080;\">Latest changes: TDS\/TCS significant transformation Income Tax Act, 2025<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>India&#8217;s tax withholding regime has undergone its most significant transformation in decades with the introduction of the Income Tax Act, 2025, and the accompanying Income Tax Rules, 2026. The new framework is not merely a renumbering exercise\u2014it represents a shift toward digital compliance, automation, simplified reporting, and integrated tax administration.<\/p>\n<p>For chartered accountants, tax professionals, businesses, deductors, collectors, and ERP developers, understanding these changes is critical for ensuring seamless compliance from FY 2026-27 onwards.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Major_Structural_Changes_under_the_New_Framework\"><\/span><span style=\"color: #000080;\"><strong>Major Structural Changes under the New Framework<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The new law introduces a unified TDS\/TCS architecture, Single compliance framework for TDS and TCS returns, a new tax year concept, an automated filing ecosystem, a consolidated challan-cum-statement system, New forms for remittances and TDS\/TCS reporting and Enhanced API-enabled compliance mechanism. Updated section codes and return formats. The focus has shifted from fragmented compliance to an integrated digital ecosystem.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Rule_218_%E2%80%93_Time_and_Mode_of_Tax_Payment\"><\/span><span style=\"color: #000080;\"><strong>Rule 218 \u2013 Time and Mode of Tax Payment<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>One of the most operationally important provisions is Rule 218, which governs the timing and mode of depositing TDS and TCS.<\/li>\n<\/ul>\n<p><strong>Government Deductors<\/strong><\/p>\n<ul>\n<li>Without Challan : Tax must be deposited on the same day.<\/li>\n<li>With Challan : Deposit must be made within seven days from the end of the month.<\/li>\n<li>Non-Government Deductors : For March Due date: 30 April.<\/li>\n<li>For Other Months: Due date: 7th day of the following month.<\/li>\n<\/ul>\n<p>Special Transactions : The following transactions require payment and reporting within 30 days using Form 141 Property transactions, Rent payments by Individual\/HUF, Certain professional payments and Virtual Digital Asset (VDA) transactions.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Major_Relief_TCS_Due_Date_Alignment\"><\/span><span style=\"color: #000080;\"><strong>Major Relief: TCS Due Date Alignment<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Previously: March TCS had to be deposited by 7 April.<\/li>\n<li>Now: March TCS is due by 30 April, identical to March TDS.<\/li>\n<li>Benefits is Uniform compliance framework, Reduced interest exposure, Simplified year-end reconciliations, Fewer compliance mistakes.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Form_137_%E2%80%93_Replacement_of_Form_24G\"><\/span><span style=\"color: #000080;\"><strong>Form 137 \u2013 Replacement of Form 24G<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The old Form 24G has been replaced by Form 137. This form is primarily used by Government Departments for reporting TDS book transfers and TCS book transfers.<\/li>\n<li>Key Information Required : AIN (Account Office Identification Number) and DDO details, Transfer voucher information.<\/li>\n<li>Improvements over Form 24G : Better integration with new forms, Improved reporting architecture, Enhanced automation and More standardized compliance workflow.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Rule_219_%E2%80%93_Quarterly_TDSTCS_Reporting_Framework\"><\/span><span style=\"color: #000080;\"><strong>Rule 219 \u2013 Quarterly TDS\/TCS Reporting Framework<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One of the biggest structural reforms is the migration from separate reporting rules to a unified framework under Rule 219.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"New_Quarterly_Forms\"><\/span><span style=\"color: #000080;\"><strong>New Quarterly Forms<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 313px;\" width=\"860\">\n<tbody>\n<tr>\n<td><strong>Form<\/strong><\/td>\n<td><strong>Purpose<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Form 138<\/td>\n<td>Salary TDS<\/td>\n<\/tr>\n<tr>\n<td>Form 140<\/td>\n<td>Resident Non-Salary TDS<\/td>\n<\/tr>\n<tr>\n<td>Form 143<\/td>\n<td>TCS Return<\/td>\n<\/tr>\n<tr>\n<td>Form 144<\/td>\n<td>Non-Resident TDS<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"Quarterly_Due_Dates\"><\/span><span style=\"color: #000080;\"><strong>Quarterly Due Dates<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 315px;\" width=\"851\">\n<tbody>\n<tr>\n<td><strong>Quarter<\/strong><\/td>\n<td><strong>Due Date<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Q1<\/strong><\/td>\n<td><strong>31 July<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Q2<\/strong><\/td>\n<td><strong>31 October<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Q3<\/strong><\/td>\n<td><strong>31 January<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Q4<\/strong><\/td>\n<td><strong>31 May<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"New_Tax_Year_Concept\"><\/span><span style=\"color: #000080;\"><strong>New Tax Year Concept<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The traditional FY\/AY structure is gradually being replaced by the Tax Year concept for compliance and reporting purposes. This change impacts TDS returns, TCS returns, forms, certificates, and compliance software mapping.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form_138_%E2%80%93_Replacement_of_Form_24Q\"><\/span><span style=\"color: #000080;\"><strong>Form 138 \u2013 Replacement of Form 24Q: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Form 138 replaces Form 24Q for salary reporting. Coverage, Salary TDS, Specified Senior Citizen Scheme income reporting. specified senior citizen schemerting, Tax regime selection tracking, Enhanced validations, Advanced digital controls and Improveenhancements:readiness.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form_139_%E2%80%93_Refund_of_Excess_TDSTCS\"><\/span><span style=\"color: #000080;\"><strong>Form 139 \u2013 Refund of Excess TDS\/TCS: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Form 139 replaces the earlier refund application process. \u00a0Used In Cases Of Excess challan payments, Duplicate deposits, Wrong challan reporting and Excess TDS\/TCS remittance. \u00a0Major Improvements like Online filing through TRACES, Multi-challan refund capability, Auto-validation and Direct credit to bank account.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form_140_%E2%80%93_Replacement_of_Form_26Q\"><\/span><span style=\"color: #000080;\"><strong>Form 140 \u2013 Replacement of Form 26Q : <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Form 140 is now the quarterly TDS return for resident non-salary payments. \u00a0Important Features.<\/p>\n<p>Form 121 Integration :<\/p>\n<p>The return captures UIN of Form 121 declarations and declaration-based exemptions. Detailed Deductee Reporting : The Annexure captures PAN, amount paid, date of payment, rate of deduction, certificate details, and Form 121 references.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form_140_Flag_System\"><\/span><span style=\"color: #000080;\"><strong>Form 140 Flag System<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"color: #000080;\"><strong>The new return introduces compliance flags to identify exemption categories. <\/strong><\/span><\/p>\n<table style=\"height: 381px;\" width=\"816\">\n<tbody>\n<tr>\n<td><strong>Flag<\/strong><\/td>\n<td><strong>Meaning<\/strong><\/td>\n<\/tr>\n<tr>\n<td>A<\/td>\n<td>Lower deduction certificate<\/td>\n<\/tr>\n<tr>\n<td>B<\/td>\n<td>Form 121 declaration<\/td>\n<\/tr>\n<tr>\n<td>C<\/td>\n<td>No PAN<\/td>\n<\/tr>\n<tr>\n<td>Y<\/td>\n<td>Below Threshold<\/td>\n<\/tr>\n<tr>\n<td>T<\/td>\n<td>Transporter Exemption<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>These flags improve return-level transparency and analytic controls. <\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form_141_%E2%80%93_Single_Challan-Cum-Statement\"><\/span><span style=\"color: #000080;\"><strong>Form 141 \u2013 Single Challan-Cum-Statement<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Perhaps the most practical compliance change. Form 141 replaces Form 26QB, Form 26QC, Form 26QD and Form 26QE. \u00a0This creates a single consolidated reporting mechanism for various special TDS transactions.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Form_142_%E2%80%93_VDA_Reporting_Framework\"><\/span><span style=\"color: #000080;\"><strong>Form 142 \u2013 VDA Reporting Framework: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>India&#8217;s expanding digital asset ecosystem now gets a dedicated reporting form. Form 142 covers Crypto transfers, VDA transactions, In-kind settlements and Exchange-based reporting. Quarterly filing is mandatory for qualifying exchanges.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Form_143_%E2%80%93_Replacement_of_Form_27EQ\"><\/span><span style=\"color: #000080;\"><strong>Form 143 \u2013 Replacement of Form 27EQ<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Form 143 becomes the quarterly TCS return. Key features like tax year reporting, improved reconciliation, API integration, Analytics-driven compliance model and better traceability.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Form_144_%E2%80%93_Replacement_of_Form_27Q\"><\/span><span style=\"color: #000080;\"><strong>Form 144 \u2013 Replacement of Form 27Q<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Form 144 governs non-resident TDS reporting. Applicable for NRI payments, foreign company transactions and DTAA-based witforeigng cases. transactions, porting Requirements : Country code, DTAA rates, tax residency certificate (TRC), and Form 10F and Lower deduction certificate references.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Rule_220_%E2%80%93_Foreign_Remittance_Reporting\"><\/span><span style=\"color: #000080;\"><strong>Rule 220 \u2013 Foreign Remittance Reporting: <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cross-border remittance compliance has undergone substantial modernization. \u00a0Form Replacements<\/p>\n<table style=\"height: 216px;\" width=\"831\">\n<tbody>\n<tr>\n<td><strong>Old Form<\/strong><\/td>\n<td><strong>New Form<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Form 15CA<\/strong><\/td>\n<td><strong>Form 145<\/strong><\/td>\n<\/tr>\n<tr>\n<td><strong>Form 15CB<\/strong><\/td>\n<td><strong>Form 146<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Form 145 Structure<\/strong><\/p>\n<ul>\n<li>Part-A : Chargeable remittance up to INR 5 lakh.<\/li>\n<li>Part-B : Cases covered by AO Certificate.<\/li>\n<li>Part-C : Cases covered by CA Certificate.<\/li>\n<li>Part-D : Non-taxable remittances.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Additional_Improvements_TIN_capture_electronic_filing_ITBA_integration_and_a_7-day_withdrawal_facility\"><\/span><span style=\"color: #000080;\"><strong>Additional Improvements: TIN capture, electronic filing, ITBA integration, and a 7-day withdrawal facility. <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Form 146 \u2013 CA Remittance Certificate<\/li>\n<li>Income tax Form 146 replaces Form 15CB.<\/li>\n<\/ul>\n<p>Major new requirements are mandatory UDIN, Firm Registration Number (FRN), Remittee TIN, DTAA disclosure matrix and One-to-one linkage with Form 145. \u00a0This strengthens audit trails and professional accountability.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"New_Compliance_Cycle_Under_the_2025_Framework\"><\/span><span style=\"color: #000080;\"><strong>New Compliance Cycle Under the 2025 Framework<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-10877\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/07\/Screenshot-2026-07-28-002814.png\" alt=\"New Compliance Cycle Under the 2025 Framework\" width=\"997\" height=\"1283\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/07\/Screenshot-2026-07-28-002814.png 307w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2026\/07\/Screenshot-2026-07-28-002814-233x300.png 233w\" sizes=\"(max-width: 997px) 100vw, 997px\" \/><\/p>\n<p>Every deductor must ensure the following sequence: Obtain TAN, Deduct tax, Deposit tax, File TDS\/TCS returns and Issue certificates.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"New_Form_Mapping\"><\/span><span style=\"color: #000080;\"><strong>New Form Mapping<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 457px;\" width=\"826\">\n<tbody>\n<tr>\n<td><strong>Old Form<\/strong><\/td>\n<td><strong>New Form<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Form 24Q<\/td>\n<td>Form 138<\/td>\n<\/tr>\n<tr>\n<td>Form 26Q<\/td>\n<td>Form 140<\/td>\n<\/tr>\n<tr>\n<td>Form 27Q<\/td>\n<td>Form 144<\/td>\n<\/tr>\n<tr>\n<td>Form 27EQ<\/td>\n<td>Form 143<\/td>\n<\/tr>\n<tr>\n<td>Form 16<\/td>\n<td>Form 130<\/td>\n<\/tr>\n<tr>\n<td><strong>Form 16A<\/strong><\/td>\n<td><strong>Form 131<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"New_Section_Mapping_Under_the_Income_Tax_Act_2025\"><\/span><span style=\"color: #000080;\"><strong>New Section Mapping Under the Income Tax Act, 2025<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>One of the biggest implementation challenges will be section code migration. Pages 135-150 of the Rules provide the master mapping table.<\/p>\n<table style=\"height: 458px;\" width=\"862\">\n<tbody>\n<tr>\n<td><strong>Income-tax Act, 1961<\/strong><\/td>\n<td><strong>Income Tax Act, 2025<\/strong><\/td>\n<\/tr>\n<tr>\n<td>192<\/td>\n<td>392<\/td>\n<\/tr>\n<tr>\n<td>194A<\/td>\n<td>393 Table 1<\/td>\n<\/tr>\n<tr>\n<td>194C<\/td>\n<td>393 Table 1<\/td>\n<\/tr>\n<tr>\n<td>194J<\/td>\n<td>393 Table 1<\/td>\n<\/tr>\n<tr>\n<td>195<\/td>\n<td>393 Table 2<\/td>\n<\/tr>\n<tr>\n<td>206C<\/td>\n<td>394<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>These mappings are critical for ERP updates, payroll software, TDS return utilities, TRACES compliance, internal controls, and Tax automation projects.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"TCS_Rate_Chart_under_Income-tax_Act_2025_FY_2026-27\"><\/span><span style=\"color: #000080;\"><strong>TCS Rate Chart under Income-tax Act, 2025 (FY 2026-27)<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Budget 2026 TCS Reforms: Uniform 2% TCS Regime, Lower LRS Rates &amp; Major Relief for Overseas Tour Packages<\/p>\n<p>The Income Tax Act, 2025, read with the proposed Budget 2026 amendments, introduces a significant overhaul in the Tax Collected at Source (TCS) framework. The government&#8217;s objective is to simplify compliance, reduce classification disputes, and create a largely uniform TCS structure around a 2% rate for several categories. The biggest beneficiaries are Overseas tour package buyers and persons remitting funds abroad for education and medical treatment Tendu leaf traders<\/p>\n<p>At the same time, sectors such as scrap trading, mineral trading, and alcoholic liquor face a higher TCS burden due to rate rationalization.<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Nature of Receipt<\/strong><\/td>\n<td><strong>Old Section (1961)<\/strong><\/td>\n<td><strong>Income-tax Act, 2025<\/strong><\/td>\n<td><strong>Threshold Limit<\/strong><\/td>\n<td><strong>TCS Rate<\/strong><\/td>\n<td><strong>Budget 2026 Impact<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Alcoholic Liquor for Human Consumption<\/td>\n<td>206C(1)(i)<\/td>\n<td>Sec. 394 Item 1<\/td>\n<td>No threshold<\/td>\n<td>2%<\/td>\n<td>Increased from 1%<\/td>\n<\/tr>\n<tr>\n<td>Tendu Leaves<\/td>\n<td>206C(1)(ii)<\/td>\n<td>Sec. 394 Item 2<\/td>\n<td>No threshold<\/td>\n<td>2%<\/td>\n<td>Reduced from 5%<\/td>\n<\/tr>\n<tr>\n<td>Scrap<\/td>\n<td>206C(1)<\/td>\n<td>Sec. 394 Item 4<\/td>\n<td>No threshold<\/td>\n<td>2%<\/td>\n<td>Increased from 1%<\/td>\n<\/tr>\n<tr>\n<td>Minerals (Coal, Iron Ore, Lignite)<\/td>\n<td>206C(1)<\/td>\n<td>Sec. 394 Item 5<\/td>\n<td>No threshold<\/td>\n<td>2%<\/td>\n<td>Increased from 1%<\/td>\n<\/tr>\n<tr>\n<td>Motor Vehicles<\/td>\n<td>206C(1F)<\/td>\n<td>Sec. 394 Item 6<\/td>\n<td>Exceeding INR 10 lakh<\/td>\n<td>1%<\/td>\n<td>No change<\/td>\n<\/tr>\n<tr>\n<td>LRS \u2013 Education &amp; Medical Treatment<\/td>\n<td>206C(1G)<\/td>\n<td>Sec. 394 Item 7<\/td>\n<td>Above INR 10 lakh<\/td>\n<td>2%<\/td>\n<td>Reduced from 5%<\/td>\n<\/tr>\n<tr>\n<td>LRS \u2013 Other Purposes<\/td>\n<td>206C(1G)<\/td>\n<td>Sec. 394 Item 7<\/td>\n<td>Above INR 10 lakh<\/td>\n<td>20%<\/td>\n<td>No change<\/td>\n<\/tr>\n<tr>\n<td>Overseas Tour Programme Packages<\/td>\n<td>206C(1G)<\/td>\n<td>Sec. 394 Item 8<\/td>\n<td>No threshold<\/td>\n<td>2%<\/td>\n<td>Major reduction and simplification<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><b>Uniform<\/b> 2% TCS Strategy: One of the most important policy changes is the government&#8217;s move toward a uniform 2% TCS structure. Earlier, different sectors had different TCS rates 1%, 2.5%, 5%, 20%<\/p>\n<p>This led to classification disputes, accounting errors, TCS mismatch issues, System complexity. Under the new framework, most traditional TCS categories are standardized at 2%, making compliance easier for businesses and tax administrators.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><span style=\"color: #000080;\"><strong>Final Thoughts<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Income Tax Rules 2026 signal a paradigm shift in Indian tax compliance. The transition is not merely from old forms to new forms\u2014it is a move toward a fully digital, API-driven, consolidated withholding tax environment. The introduction of Form 138, 140, 143, 144, 145, 146, the unified Form 141, standardized return dates, Tax Year reporting, and integrated remittance compliance will fundamentally change the way professionals handle TDS and TCS obligations.<\/p>\n<p>For Chartered Accountants and tax professionals, early preparedness, ERP remapping, staff training, and process restructuring will be the key to a smooth migration from the Income-tax Act, 1961 framework to the new Income-tax Act, 2025 ecosystem<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Latest changes: TDS\/TCS significant transformation Income Tax Act, 2025 India&#8217;s tax withholding regime has undergone its most significant transformation in decades with the introduction of the Income Tax Act, 2025, and the accompanying Income Tax Rules, 2026. The new framework is not merely a renumbering exercise\u2014it represents a shift toward digital compliance, automation, simplified reporting, &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\/10872"}],"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=10872"}],"version-history":[{"count":5,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10872\/revisions"}],"predecessor-version":[{"id":10874,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/10872\/revisions\/10874"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=10872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=10872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=10872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}