Income Tax News: The Income Tax Department has announced a significant update in tax compliance procedures, replacing the existing TDS forms 24Q and 26Q with new Forms 138 and 140 as part of reforms under the Income Tax Act, 2025.
Income Tax News: Quarterly TDS Forms Explained
As per the latest update shared by Income Tax Department, the newly introduced forms will be used for filing quarterly Tax Deducted at Source (TDS) statements:
DON'T MISS
- Form 138: To be filed by employers for salary payments
- Form 140: To be filed by deductors for non-salary or other payments
These forms replace the earlier system where:
- Form 24Q was used for salary-related TDS
- Form 26Q was used for TDS on other payments
Aim Behind the Change
The move is part of the government’s broader initiative to simplify tax procedures under the campaign “Saral Kanoon, Sashakt Bharat.” The revised forms are expected to streamline filing, improve clarity, and enhance compliance efficiency for taxpayers and businesses.
Government Push for Simplified Tax Compliance
The development comes under the supervision of the Finance Ministry, led by Nirmala Sitharaman, aiming to modernize and simplify India’s tax structure.
Tax experts believe that the transition to new forms may require initial adaptation by employers and deductors, but will ultimately lead to a more structured and user-friendly compliance system.
What Taxpayers and Businesses Should Do
Employers, companies, and other deductors are advised to familiarize themselves with the new forms and ensure timely compliance in upcoming TDS filings to avoid penalties.
The Income Tax Department has also encouraged users to stay updated through official notifications and guidelines as the new system rolls out.
Experts also note that the transition may require updates in payroll software and accounting systems, as well as training for finance teams to ensure accurate and timely filing under the revised TDS framework.
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