{"id":1340,"date":"2026-03-24T21:45:53","date_gmt":"2026-03-24T17:15:53","guid":{"rendered":"https:\/\/caalokkumar.com\/my-writing\/?p=1340"},"modified":"2026-03-24T21:48:52","modified_gmt":"2026-03-24T17:18:52","slug":"tds-compliance-under-income-tax-act-2025","status":"publish","type":"post","link":"https:\/\/caalokkumar.com\/my-writing\/tds-compliance-under-income-tax-act-2025\/","title":{"rendered":"TDS Compliance in Income Tax Act 2025: What Changes, What Continues, What to Watch &#8211; TDS Compliance Guide 2026"},"content":{"rendered":"\n<h1 class=\"wp-block-heading\"><a><\/a><a><\/a><a><\/a>TDS Compliance During the Transition to the Income\u2011tax Act&nbsp;2025<\/h1>\n\n\n\n<p>The enactment of the Income\u2011tax Act&nbsp;2025, effective from <strong>1&nbsp;April&nbsp;2026<\/strong>, does not introduce new taxes but reorganises and consolidates existing provisions. For businesses and employees, the shift affects <strong>tax deducted at source (TDS)<\/strong> obligations. This guide summarises the transitional rules from both <strong>deductor<\/strong> (payer) and <strong>deductee<\/strong> (payee) perspectives, drawing on the Central Board of Direct Taxes (CBDT) FAQs and the text of the new law.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a>Which Act Governs TDS During the Transition?<\/a><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Timing of credit or payment determines the applicable Act<\/a><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Trigger date<\/strong>\u00a0\u2013 TDS liability is tied to the <strong>earlier of credit or payment<\/strong>. If that event falls <strong>on or before 31\u00a0March\u00a02026<\/strong>, the Income\u2011tax Act\u00a01961 governs; if it occurs <strong>on or after 1\u00a0April\u00a02026<\/strong>, the Income\u2011tax Act\u00a02025 applies.<\/li>\n\n\n\n<li><strong>Example\u00a01<\/strong>\u00a0\u2013 Professional fees credited in March\u00a02026 but paid in April\u00a02026: the credit date triggers TDS under the 1961 Act.<\/li>\n\n\n\n<li><strong>Example\u00a02<\/strong>\u00a0\u2013 Advance payment made in March\u00a02026 but credited in books in April\u00a02026: the advance payment triggers TDS under the 1961 Act.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Ongoing contracts<\/a><\/h3>\n\n\n\n<p>A contract continuing across 31\u00a0March\u00a02026 does not need to be renegotiated. The deductor applies the 1961 Act for payments or credits up to 31\u00a0March\u00a02026 and the 2025 Act thereafter. For instance, a monthly housekeeping contract: TDS for March\u00a02026 is governed by section\u00a0194C of the old Income Tax Act 1961 , while April\u00a02026 payments fall under <a href=\"http:\/\/caalokkumar.com\" target=\"_blank\" rel=\"noreferrer noopener\">Section\u00a0393(1) of the new Income Tax Act 2025<\/a>. The rates and thresholds remain identical.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Continuity of rates and section references<\/a><\/h3>\n\n\n\n<p>The new Act <strong>does not change TDS rates or monetary thresholds<\/strong>. However, section numbers have been consolidated into a simplified table under section&nbsp;393. Deductors must update their ERP\/payroll systems to reflect the new numbering and reporting requirements. Quoting an obsolete section (e.g., 194C instead of 393) may cause processing errors and necessitate a correction statement.<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p>This article explains new <strong>TDS rules 2026, Income-tax Rules 2026, Form 138, Form 140, Form 141, Form 168, AIS reporting, salary TDS, non-salary TDS<\/strong>, and practical compliance steps for businesses during the transition period.<\/p>\n\n\n\n<p>Businesses, employers, accountants, and tax professionals should focus on correct TDS deduction, timely deposit, accurate quarterly statements, proper certificate issuance, and reconciliation of TDS credit to avoid defaults, penalties, and mismatch issues. TDS compliance, Income-tax Act 2025, TDS transition rules, TDS due dates 2026, quarterly TDS return filing, TDS certificates, deductor compliance, deductee TDS credit, and business tax compliance are now important areas for every business to understand and implement correctly.<\/p>\n<\/div><\/div>\n<\/blockquote>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><a>Deposit of TDS \u2013 Timelines and Compliance<\/a><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Due dates for non\u2011government deductors<\/a><\/h3>\n\n\n\n<p>For <strong>FY\u00a02026\u201127<\/strong>, due dates mirror the existing schedule under Rule\u00a030 (old Act) and <a href=\"https:\/\/caalokkumar.com\/itr-filing.html\" target=\"_blank\" rel=\"noreferrer noopener\">Rule\u00a0218 of Income Tax Act 2025<\/a> <a href=\"http:\/\/caindwarka.com\" target=\"_blank\" rel=\"noreferrer noopener\">(New Income Tax Act 2025<\/a>). Key timelines are:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td>Period of deduction<\/td><td>Due date for deposit<\/td><td>Governing law<\/td><\/tr><\/thead><tbody><tr><td>January\u2013February&nbsp;2026<\/td><td>7th of the following month<\/td><td>Income\u2011tax Act&nbsp;1961 (Rule&nbsp;30)<\/td><\/tr><tr><td>March&nbsp;2026<\/td><td>30&nbsp;April&nbsp;2026<\/td><td>Income\u2011tax Act&nbsp;1961 (Rule&nbsp;30)<\/td><\/tr><tr><td>April&nbsp;2026 onwards<\/td><td>7th of the following month<\/td><td>Income\u2011tax Act&nbsp;2025 (Rule&nbsp;218 of Income\u2011tax Rules&nbsp;2026)<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Late deposit attracts interest at <strong>1.5&nbsp;% per month<\/strong> from the date of deduction until payment. For example, if tax deducted in March&nbsp;2026 is deposited in May&nbsp;2026, the deductor is liable for interest from 31&nbsp;March&nbsp;2026 until the payment date.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Due dates for government deductors<\/a><\/h3>\n\n\n\n<p>Government offices follow similar timelines but must deposit TDS <strong>without challan<\/strong> on the same day of deduction; where a challan is required, the deposit is due by the <strong>7th of the next month<\/strong>. The rules apply identically under both Acts.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Challan\u2011cum\u2011TDS statements<\/a><\/h3>\n\n\n\n<p>Certain transactions require a combined payment\u2011cum\u2011statement instead of a quarterly return. Under the 1961 Act this applied to Forms&nbsp;26QB (purchase of immovable property), 26QC (rent by individual\/HUF), 26QD (payments by individuals\/HUFs to contractors\/professionals) and 26QE (transfer of virtual digital assets). For events occurring <strong>on or before 31&nbsp;March&nbsp;2026<\/strong> these forms remain valid. For events <strong>on or after 1&nbsp;April&nbsp;2026<\/strong>, the Income\u2011tax Rules&nbsp;2026 prescribe a <strong>common Form&nbsp;141<\/strong> applicable to all four types.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a>Filing TDS Returns and Statements<\/a><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Quarterly returns during FY&nbsp;2026\u201127<\/a><\/h3>\n\n\n\n<p>Deductors may need to file returns under <strong>both Acts<\/strong> in FY&nbsp;2026\u201127. The relevant forms and deadlines are summarised below:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td>Quarter &amp; period<\/td><td>Governing Act<\/td><td>Form(s)<\/td><td>Due date<\/td><\/tr><\/thead><tbody><tr><td>Q4 of FY&nbsp;2025\u201126 (Jan\u2013Mar&nbsp;2026)<\/td><td>Income\u2011tax Act&nbsp;1961<\/td><td>Forms&nbsp;24Q\/26Q\/27Q\/27EQ<\/td><td>31&nbsp;May&nbsp;2026<\/td><\/tr><tr><td>Q1 of TY&nbsp;2026\u201127 (Apr\u2013Jun&nbsp;2026)<\/td><td>Income\u2011tax Act&nbsp;2025<\/td><td><strong>Form&nbsp;138<\/strong> (salary TDS), <strong>Form&nbsp;140<\/strong> (non\u2011salary TDS), <strong>Form&nbsp;144<\/strong> (non\u2011resident TDS) and <strong>Form&nbsp;143<\/strong> (TCS)<\/td><td>31&nbsp;July&nbsp;2026<\/td><\/tr><tr><td>Q2 of TY&nbsp;2026\u201127 (Jul\u2013Sep&nbsp;2026)<\/td><td>Income\u2011tax Act&nbsp;2025<\/td><td>Same forms (138\/140\/144\/143)<\/td><td>31&nbsp;October&nbsp;2026<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Correction statements for periods up to March&nbsp;2026 must continue under the old Act (using the old forms) even after the new Act comes into force.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Support for return preparation utilities<\/a><\/h3>\n\n\n\n<p>The CBDT has clarified that the <strong>e\u2011TDS\/TCS return preparation utility (RPU)<\/strong> and the TRACES portal will support both old and new formats during the transition.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a>Issuance of TDS Certificates<\/a><\/h2>\n\n\n\n<p>Deductors must issue certificates to deductees within specified timelines. During the transition there are different formats depending on the period:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><td>Description<\/td><td>Period covered<\/td><td>Governing Act &amp; form<\/td><td>Due date<\/td><\/tr><\/thead><tbody><tr><td>TDS on salary<\/td><td>FY&nbsp;2025\u201126<\/td><td>Form&nbsp;16 (old Act)<\/td><td>15&nbsp;June&nbsp;2026<\/td><\/tr><tr><td>TDS on payments other than salary<\/td><td>Jan\u2013Mar&nbsp;2026<\/td><td>Form&nbsp;16A (old Act)<\/td><td>15&nbsp;June&nbsp;2026 (15&nbsp;days from due date of return)<\/td><\/tr><tr><td>TDS on salary<\/td><td>TY&nbsp;2026\u201127<\/td><td>Form&nbsp;130 (new Act)<\/td><td>15&nbsp;June&nbsp;2027<\/td><\/tr><tr><td>TDS on payments other than salary<\/td><td>Apr\u2013Jun&nbsp;2026<\/td><td>Form&nbsp;131 (new Act)<\/td><td>15&nbsp;August&nbsp;2026<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Failure to issue the certificate on time attracts a penalty of <strong>Rs&nbsp;500 per day<\/strong> under section&nbsp;272A(2)(g) of the 1961 Act.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a>Consequences of Non\u2011compliance \u2013 Deductor<\/a><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Assessee\u2011in\u2011default<\/a><\/h3>\n\n\n\n<p>If a deductor fails to deduct TDS on payments or credits made <strong>before 31&nbsp;March&nbsp;2026<\/strong>, they are treated as an <strong>assessee in default<\/strong> under section&nbsp;201(1) of the 1961 Act. Consequences include recovery of the tax, interest at 1&nbsp;% per month for failure to deduct and 1.5&nbsp;% per month for failure to deposit, and a penalty equal to the tax not deducted. These proceedings can be initiated even after 1&nbsp;April&nbsp;2026 by virtue of section&nbsp;536(2)(c)\u2013(d) of the 2025 Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Time limit for passing orders<\/a><\/h3>\n\n\n\n<p>Under the 2025 Act, orders deeming the deductor as assessee\u2011in\u2011default must be made within <strong>six years from the end of the tax year in which tax was deductible<\/strong> or <strong>two years from the end of the tax year in which a correction statement is delivered<\/strong>, whichever is later. This is similar to the old Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>When the deductee has paid tax directly<\/a><\/h3>\n\n\n\n<p>If the deductee has included the income in their return, paid tax on it and furnished the prescribed certificate (Form&nbsp;26A), the deductor is <strong>not deemed to be an assessee in default<\/strong>, but remains liable for interest for the period of delay.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>Penalties and disallowances<\/a><\/h3>\n\n\n\n<p>Non\u2011deduction or non\u2011deposit of TDS can result in multiple consequences under the new Act: (1) recovery of tax and interest; (2) penalty and possible prosecution for wilful failure; and (3) <strong>disallowance of 30&nbsp;% of the expenditure<\/strong> when computing business income under section&nbsp;35(b) of the 2025 Act (equivalent to section&nbsp;40(a)(ia) of the old Act). For example, failure to deduct TDS on a professional fee of Rs&nbsp;5&nbsp;lakh in TY&nbsp;2026\u201127 results in disallowance of Rs&nbsp;1.5&nbsp;lakh.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>TCS provisions<\/a><\/h3>\n\n\n\n<p>Tax collected at source (TCS) is consolidated under section&nbsp;394 of the 2025 Act. The same transition rules\u2014credit\/payment trigger and continuity of rates\u2014apply.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><a>TDS on Salary \u2013 Specific Transition Issues<\/a><\/h2>\n\n\n\n<p>Salary TDS is governed by the date of <strong>payment<\/strong>, not credit. Thus:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Salary for March\u00a02026 paid on <strong>31\u00a0March\u00a02026<\/strong> is governed by the 1961 Act.<\/li>\n\n\n\n<li>Salary for April\u00a02026 paid on <strong>30\u00a0April\u00a02026<\/strong> is governed by the 2025 Act.<\/li>\n<\/ul>\n\n\n\n<p>Employers should:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Apply section\u00a0192 of the old Act for salary relating to FY\u00a02025\u201126 paid up to March\u00a02026.<\/li>\n\n\n\n<li>From 1\u00a0April\u00a02026, reset TDS computations under section\u00a0392 of the new Act for Tax Year\u00a02026\u201127, considering projected income, deductions and the chosen tax regime.<\/li>\n\n\n\n<li>Update payroll software to reflect new section references (e.g., Schedule\u00a0XV read with section\u00a0123 for deduction equivalents to section\u00a080C).<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><a>Claiming TDS Credit \u2013 Deductee Perspective<\/a><\/h2>\n\n\n\n<p>Deductees should be proactive during the transition to ensure correct credit:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Claiming credit for FY\u00a02025\u201126<\/strong>\u00a0\u2013 TDS on income pertaining to FY\u00a02025\u201126 will appear in the <strong>Annual Information Statement (AIS) for AY\u00a02026\u201127<\/strong> and should be claimed under the old Act.<\/li>\n\n\n\n<li><strong>Deposit made after 1\u00a0April\u00a02026<\/strong>\u00a0\u2013 If tax deducted in March\u00a02026 is deposited after 1\u00a0April\u00a02026, credit still belongs to AY\u00a02026\u201127 provided the deductor files the Q4 return correctly.<\/li>\n\n\n\n<li><strong>Credits from both Acts<\/strong>\u00a0\u2013 Where tax is deducted in both March\u00a02026 and April\u00a02026, the credit will be segregated between AY\u00a02026\u201127 (old Act) and Tax\u00a0Year\u00a02026\u201127 (new Act) in the AIS and Form\u00a0168.<\/li>\n\n\n\n<li><strong>Separate AIS statements<\/strong>\u00a0\u2013 There will be distinct AIS statements: one for AY\u00a02026\u201127 (old Act) and another <strong>Form\u00a0168<\/strong> for TY\u00a02026\u201127 (new Act).<\/li>\n\n\n\n<li><strong>Mismatches<\/strong>\u00a0\u2013 If there is a mismatch between TDS credit claimed and the AIS, the deductee should promptly contact the deductor to file a revised return.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><a>Practical Steps for Businesses to Ensure Correct TDS Compliance<\/a><\/h2>\n\n\n\n<p>The transition requires both <strong>payers<\/strong> and <strong>payees<\/strong> to coordinate their systems and processes. Key action points include:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Identify the trigger date<\/strong>: Determine whether the payment\/credit event occurs before or after <strong>1\u00a0April\u00a02026<\/strong> to ascertain which Act applies.<\/li>\n\n\n\n<li><strong>Update contracts and internal documentation<\/strong>: While existing contracts need not be amended solely due to the new Act, ensure that accounting and payroll systems can capture the relevant date and apply the correct section number.<\/li>\n\n\n\n<li><strong>Revamp ERP\/payroll systems<\/strong>: Incorporate the <strong>consolidated section\u00a0393<\/strong> and other new sections; map old section numbers to the new ones; update forms and labels for returns and certificates.<\/li>\n\n\n\n<li><strong>Adhere to deposit deadlines<\/strong>: Mark calendar reminders for due dates; apply the correct rule (Rule\u00a030 or Rule\u00a0218) depending on the period.<\/li>\n\n\n\n<li><strong>File timely quarterly returns<\/strong>: Recognise that FY\u00a02026\u201127 will involve filing returns under both Acts; ensure use of the correct forms and due dates.<\/li>\n\n\n\n<li><strong>Issue TDS certificates promptly<\/strong>: Track due dates for Form\u00a016\/16A (old Act) and Forms\u00a0130\/131 (new Act) to avoid penalties.<\/li>\n\n\n\n<li><strong>Monitor non\u2011compliance risks<\/strong>: Understand the consequences of being deemed assessee\u2011in\u2011default, including recovery of tax, interest, penalty and disallowance of expenditure.<\/li>\n\n\n\n<li><strong>Educate employees<\/strong>: Provide clarity to staff on the new section references (e.g., investment declarations referencing Schedule\u00a0XV instead of section\u00a080C).<\/li>\n\n\n\n<li><strong>Reconcile AIS\/Form\u00a0168 data<\/strong>: Deductees should match TDS credits with AIS statements and report discrepancies promptly.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><a>Frequently Asked Questions (FAQs)<\/a><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><a>1. What rule determines whether the old or new Act applies to a payment?<\/a><\/h3>\n\n\n\n<p>The applicable Act depends on the <strong>earlier of credit or payment<\/strong>. Events up to 31&nbsp;March&nbsp;2026 fall under the Income\u2011tax Act&nbsp;1961, while events on or after 1&nbsp;April&nbsp;2026 are governed by the Income\u2011tax Act&nbsp;2025.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>2. Do TDS rates change under the new Act?<\/a><\/h3>\n\n\n\n<p>No. The 2025 Act consolidates TDS provisions under section&nbsp;393 but <strong>retains existing rates and monetary thresholds<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>3. Are contracts required to be amended because of the new Act?<\/a><\/h3>\n\n\n\n<p>No. Contracts can continue; the deductor simply applies the old Act up to 31&nbsp;March&nbsp;2026 and the new Act thereafter.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>4. What are the due dates for depositing TDS during FY&nbsp;2026\u201127?<\/a><\/h3>\n\n\n\n<p>For non\u2011government deductors, TDS deducted up to February&nbsp;2026 must be deposited by the <strong>7th of the next month<\/strong>, March&nbsp;2026 TDS by <strong>30&nbsp;April&nbsp;2026<\/strong>, and TDS from April&nbsp;2026 onwards by the <strong>7th of the next month<\/strong>. Government deductors deposit TDS on the same day without challan or by the 7th of the next month when a challan is used.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>5. Which TDS returns must be filed during the transition year?<\/a><\/h3>\n\n\n\n<p>The Q4 return for FY&nbsp;2025\u201126 (Jan\u2013Mar&nbsp;2026) is filed under the old Act using Forms&nbsp;24Q\/26Q\/27Q\/27EQ. Returns for quarters falling in Tax Year&nbsp;2026\u201127 are filed under the new Act using Forms&nbsp;138 (salary), 140 (non\u2011salary), 144 (non\u2011resident) and 143 (TCS).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>6. Is a common form available for property purchase, rent, contractor payments and virtual digital asset transfers?<\/a><\/h3>\n\n\n\n<p>Yes. For events on or after 1&nbsp;April&nbsp;2026, the <strong>Income\u2011tax Rules&nbsp;2026<\/strong> prescribe <strong>Form&nbsp;141<\/strong> as a common challan\u2011cum\u2011TDS statement for these transactions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>7. When must TDS certificates be issued and under which forms?<\/a><\/h3>\n\n\n\n<p>Certificates for salary and other payments relating to FY&nbsp;2025\u201126 are issued in Form&nbsp;16 and Form&nbsp;16A respectively by <strong>15&nbsp;June&nbsp;2026<\/strong>. For payments under the new Act, salary certificates (Form&nbsp;130) are due by 15&nbsp;June&nbsp;2027 and non\u2011salary certificates (Form&nbsp;131) for Apr\u2013Jun&nbsp;2026 are due by 15&nbsp;August&nbsp;2026.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>8. What happens if a deductor does not deduct TDS or deposits it late?<\/a><\/h3>\n\n\n\n<p>They may be treated as an <strong>assessee in default<\/strong>, leading to recovery of tax, interest (1&nbsp;% for non\u2011deduction; 1.5&nbsp;% for late deposit) and penalties. Non\u2011compliance can also result in disallowance of 30&nbsp;% of the expenditure under section&nbsp;35(b) of the new Act.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>9. How can a deductee claim TDS credit during the transition?<\/a><\/h3>\n\n\n\n<p>Credits deducted up to March&nbsp;2026 appear in the AIS for AY&nbsp;2026\u201127 and should be claimed in the return filed under the old Act. Credits deducted from April&nbsp;2026 onwards appear in Form&nbsp;168 for TY&nbsp;2026\u201127. Deductees should reconcile these statements and inform the deductor of any mismatch.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><a>10. Are there separate AIS statements for AY&nbsp;2026\u201127 and TY&nbsp;2026\u201127?<\/a><\/h3>\n\n\n\n<p>Yes. The AIS for AY&nbsp;2026\u201127 covers income and TDS\/TCS under the old Act, while <strong>Form&nbsp;168<\/strong> serves as the Annual Information Statement for Tax Year&nbsp;2026\u201127 under the new Act.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><a href=\"http:\/\/caalokkumar.com\" target=\"_blank\" rel=\"noreferrer noopener\">TDS Under the Income-tax Act, 2025: Business Compliance Made Simple<\/a><br><a href=\"http:\/\/wealth4india.com\" target=\"_blank\" rel=\"noreferrer noopener\">Business TDS Compliance Checklist Under the New Income-tax Act, 2025<br><\/a><\/p>\n\n\n\n<p>#TDSCompliance #IncomeTaxAct2025 #TDSReturnFiling #TaxCompliance #BusinessCompliance #TDSDueDates #DeductorCompliance #DeducteeCredit #IncomeTaxRules2026 #CAAlokKumar #IndianTaxLaw #TDSUpdate #QuarterlyTDSReturn #TDSCertificates #AISMismatch #Form138 #Form140 #Form141 #Form168 #PayrollCompliance #BusinessTaxCompliance #TaxUpdate #CharteredAccountant #IndiaTaxGuide<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TDS Compliance During the Transition to the Income\u2011tax Act&nbsp;2025 The enactment of the Income\u2011tax Act&nbsp;2025, effective from 1&nbsp;April&nbsp;2026, does not introduce new taxes but reorganises and consolidates existing provisions. For&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-1340","post","type-post","status-publish","format-standard","hentry","category-income-tax-act-1961"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>TDS Compliance in Income Tax Act 2025: What Changes, What Continues, What to Watch - TDS Compliance Guide 2026 - CA ALOK KUMAR<\/title>\n<meta name=\"description\" content=\"Know how businesses should manage TDS compliance after 1 April 2026. A practical guide on TDS compliance transition under the Income-tax Act, 2025 for businesses. 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