S K and Associates

Key Recent TDS Updates & Deadlines

Key Recent TDS Updates & Deadlines

Urgent TDS/TCS
Correction Warning: The
CBDT warned that the deadline for filing TDS/TCS corrections for several past
financial years (FY 2018-19 to 2023-24) is March 31, 2026, due to the new
Income Tax Act, 2025 transition.

TDS on Rent
(Section 194-IB): Tenants
paying over ₹50,000 monthly must deduct 2% TDS on annual rent in March, with a
20% penalty if the landlord's PAN is not provided

.

New Tax
Calculators: The Income Tax
Department has introduced online calculators for TDS/TCS to help with
compliance under the new 2025 regulations.

New Form 130
(Form 16 Replacement): From
April 1, 2026, employers will use the TRACES portal to issue Form 130 instead
of Form 16, offering detailed, system-based salary reporting.

Reduced Rate
(Section 194H): Effective
October 1, 2024, the TDS rate on commission/brokerage (excluding insurance) was
reduced from 5% to 2%.

SK and Associates

Key Recent TDS Updates & Deadlines

Key Recent TDS Updates & Deadlines Urgent TDS/TCS Correction Warning: The CBDT warned that the deadline for filing TDS/TCS correc...

KEY 2026 INCOME TAX CHANGES

KEY 2026
INCOME TAX CHANGES

<ul style="margin-top: 0cm;" type="disc"><li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; tab-stops: list 36.0pt;">New Tax Rules 2026: The Income-tax Rules, 2026,
 create a single "Tax Year" (April–March), eliminating the old
 Assessment Year terminology. </li></ul>

<ul style="margin-top: 0cm;" type="disc"><li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; tab-stops: list 36.0pt;"> Form 130: Form 16 will be replaced by
 Form 130, requiring more detailed and systemic reporting from employers.</li></ul>

<ul style="margin-top: 0cm;" type="disc"><li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; tab-stops: list 36.0pt;">HRA Scrutiny: Employees must submit Form
 124 for HRA claims; landlords' PAN is mandatory for rent over ₹1 lakh.</li></ul>

<ul style="margin-top: 0cm;" type="disc"><li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; tab-stops: list 36.0pt;">Digital Currency: The RBI’s Digital Rupee
 (e₹) is now an official, prescribed mode of electronic payment for tax deductions.</li></ul>

<ul style="margin-top: 0cm;" type="disc"><li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; tab-stops: list 36.0pt;">SFT Thresholds Reduced: Reporting for insurance
 premiums (SFT) has been lowered to ₹5 lakh (with PAN) and ₹2.5 lakh
 (without PAN).</li></ul>

<ul style="margin-top: 0cm;" type="disc"><li class="MsoNormal" style="line-height: normal; mso-list: l0 level1 lfo1; mso-margin-bottom-alt: auto; tab-stops: list 36.0pt;">Exemptions: Free education perquisites in employer-owned
 schools increased to ₹3,000 per month per child. </li></ul>

KEY 2026 INCOME TAX CHANGES

KEY 2026 INCOME TAX CHANGES New Tax Rules 2026: The Income-tax Rules, 2026, create a single "Tax Year" (April–Ma...

CBDT Draft Form 138 – Quarterly TDS Reporting.

·        
Central Board of
Direct Taxes (CBDT) has proposed a new
Draft Form 138 for quarterly TDS reporting.

·        
It will replace
Form 24Q used for salary TDS
returns.

·        
The form must be filed every quarter by employers
and banks paying income to senior citizens.

·        
It will include salary details, deductions, tax calculation, TDS deducted, and
challan details.

·        
Purpose: more
transparent and detailed TDS reporting under the new Income Tax rules.

✅
In simple words: Form 138 is a new quarterly TDS return
format for salary income replacing Form 24Q.

CBDT Draft Form 138 – Quarterly TDS Reporting.

· Central Board of Direct Taxes (CBDT) has proposed a new Draft Form 138 for quarterly TDS reporting . · It will...

S K and Associates

Key Recent TDS Updates & Deadlines

Key Recent TDS Updates & Deadlines

KEY 2026 INCOME TAX CHANGES

CBDT Draft Form 138 – Quarterly TDS Reporting.

Popular Posts

Contact Form