Tax deducted at source (TDS) and tax collected at source (TCS) statements can now be filed directly online through the TRACES portal from Tax Year 2026-27, which commenced on 1 April 2026. According to reports from Mint, this change eliminates the earlier process of filing statements through the Income Tax portal and waiting for transfer to TRACES for processing. The facility represents a significant shift in how deductors submit quarterly compliance statements.
The new filing system introduces four major quarterly TDS/TCS forms that replace the previous framework. As reported by Mint, Form 138 replaces Form 24Q and covers employers and others deducting tax on salaries, pensions, and specified interest payments. Form 140 replaces Form 26Q for TDS on payments other than salaries to residents, including professional fees and commission. Form 144 replaces Form 27Q for TDS on specified payments to non-residents, while Form 143 replaces Form 27EQ for quarterly TCS statements by tax collectors. The quarterly filing deadlines remain unchanged, with statements due by 31 July, 31 October, 31 January and 31 May for first, second, third and fourth quarters respectively.
Eligible deductors must log into the TRACES portal and enter the compliance environment applicable to Tax Year 2026-27 onwards, as reported by Mint. The filing process requires selecting relevant statements and quarters, preparing accurate deductor and deductee details, and reconciling TDS deducted with relevant challans. The department has updated utilities and formats for the new forms, with deductors required to import or manually enter challan details, fill deductee information using bulk upload, and link each challan with relevant entries. The process concludes with e-verification using Aadhaar OTP or other available methods.
According to Siddharth Maurya, Founder and Managing Director of Vibhvangal Anukulara, reported by Mint, this change aligns the TRACES ecosystem with the Income-tax Act, 2025 and new Income-tax Rules, 2026. The framework particularly benefits employers, payroll teams, tax practitioners, and other deductors by streamlining regular TDS compliance. For taxpayers from whose income TDS is deducted, timely and accurate reporting ensures correct TDS credit reflection in records and alignment with income reported.
