TDS / TCS Compliance & Returns

TDS / TCS COMPLIANCE & RETURNS

TDS & TCS Compliance — Stay Aligned With the 2026 Tax Framework

TDS and TCS compliance is more than depositing tax on time. Correct applicability, deduction or collection, reporting, reconciliation and documentation help businesses avoid interest, fees, notices and unnecessary compliance issues.

What We Help With

• TDS applicability and transaction review
• TDS deduction and payment support
• Periodic TDS return preparation and filing
• TDS certificate and reporting support
• TAN-related compliance support
• TCS applicability and collection review
• TCS return and statement compliance
• TDS/TCS reconciliation and mismatch review
• Correction and default-resolution support
• Lower / nil deduction or collection matters, where applicable

2026–27: What Has Changed?

For transactions governed by the Income-tax Act, 2025, the TDS/TCS framework uses the new statutory references rather than relying on the older section numbering of the Income-tax Act, 1961.

• Section 392 — TDS relating to salary.
• Section 393 — TDS on specified payments and transactions.
• Section 394 — TCS provisions.

We review the relevant tax year and transaction date before determining the applicable provision, rate, reporting requirement and form.

New Form 141 — Important 2026 Update

Under the Income-tax Act, 2025, Form 141 is the consolidated challan-cum-statement for specified TDS transactions under Section 393(1). It brings together specified transactions that were previously reported through separate forms.

• TDS on rent paid by an Individual/HUF
• TDS on transfer of immovable property
• TDS on payments by an Individual/HUF to contractors or professionals
• TDS on transfer of Virtual Digital Assets (VDA) by an Individual/HUF

Our TDS / TCS Compliance Process

1. Understand your business, transactions and payment patterns.
2. Identify the applicable TDS/TCS provisions for the relevant tax year.
3. Review PAN, TAN, deductee/collectee details and supporting documents.
4. Check deduction or collection amounts and applicable rates.
5. Prepare payments, statements, certificates or applicable forms.
6. Reconcile reported data with challans and available records.
7. Identify mismatches, defaults or corrections requiring attention.
8. Maintain a clear compliance trail for future reference.

What You Should Keep Ready

• PAN and TAN details, where applicable
• Deductee / collectee PAN and basic details
• Nature and amount of payments or receipts
• Invoices, agreements and supporting documents
• Previous TDS/TCS statements and challans
• Lower / nil deduction or collection certificates, where applicable
• Relevant reconciliation or notice details, if any

Important 2026 Note

Tax treatment is period-specific. For transactions governed by the Income-tax Act, 1961, the earlier framework may continue to be relevant; for transactions governed by the Income-tax Act, 2025, the new provisions and forms apply. We verify the applicable framework before preparing or filing the compliance.