Introduction
From Tax Year 2026-27 onwards, TDS and TCS compliance has moved into the framework of the Income-tax Act, 2025 and Income-tax Rules, 2026. This means deductors and collectors must now use new form numbers, updated utilities and revised portal options while filing quarterly TDS and TCS statements.
The filing process is broadly similar to the earlier system, but the form numbers, section codes and portal path have changed. Therefore, before filing the first quarter TDS or TCS return for Tax Year 2026-27, deductors should carefully prepare challan details, deductee data, CSI file and the latest RPU utility.
For professional TDS return filing and compliance support, businesses may refer to TaxClear’s TDS return filing services.
New TDS and TCS Forms from Tax Year 2026-27
Under the new forms framework, the earlier TDS and TCS return forms have been renumbered. Deductors should not use old form numbers for Tax Year 2026-27 onwards.
| Earlier form | New form from TY 2026-27 | Purpose |
|---|---|---|
| Form 24Q | Form 138 | TDS on salary |
| Form 26Q | Form 140 | TDS other than salary |
| Form 27Q | Form 144 | TDS on payments to non-residents |
| Form 27EQ | Form 143 | TCS return |
The form selection is very important. If salary TDS is involved, Form 138 should be used. If TDS is deducted on non-salary payments such as professional fees, contractor payments, rent, commission or interest, Form 140 will generally apply. For non-resident payments, Form 144 should be selected. For tax collected at source, Form 143 is used.
Due Date for First Quarter Filing
For Tax Year 2026-27, the first quarter covers April to June 2026. The due date for filing the first quarter TDS/TCS return is 31 July 2026.
This due date applies to the new quarterly forms under the Income-tax Act, 2025 framework. Deductors should not wait until the last date because the first filing under the new system may require extra time for utility download, section-code mapping and validation.
Documents Required Before Filing TDS/TCS Return
Before opening the RPU utility, the deductor should keep all data ready. The return cannot be prepared correctly unless challan and deductee details are complete.
| Requirement | Why it is needed |
|---|---|
| Latest RPU utility | To prepare the TDS/TCS statement |
| CSI file | To validate challan payment details |
| Challan copies | To enter BSR code, challan number and date |
| TAN login access | To download payment and CSI data |
| Deductee PAN details | To report deductee-wise TDS |
| Payment/credit details | To map amount paid and tax deducted |
| Section codes | To classify nature of payment |
| Responsible person details | For statement and certificate generation |
Businesses should also reconcile their books, challans and TDS deduction data before filing. A mismatch between challan amount and deductee allocation can result in validation errors.
How to Download RPU Utility
The RPU utility is used to prepare the return file. For Tax Year 2026-27 onwards, deductors should download the utility meant for new forms and not the old financial year utility.
The utility version may change from time to time. Therefore, before every quarter, deductors should check whether a newer version is available.
The general process is:
Search for the latest RPU utility.
Select the utility applicable for Tax Year 2026-27 onwards.
Download and extract the utility.
Open the RPU executable file.
Ensure Java is installed on the system.
The utility generally works on Windows-based systems. Users should ensure that the system has the required Java environment and that the downloaded folder is properly extracted before running the utility.
Basic Details in the RPU Utility
After selecting the relevant form, the first section generally requires deductor details. These include:
TAN,
PAN, where required,
tax year,
quarter,
type of deductor,
name of deductor,
address,
email ID,
phone number, and
responsible person details.
The responsible person’s details are important because TDS certificates and return records are linked with this information. Companies, firms and organisations should ensure that the authorised person’s name, designation and contact details are correctly entered.
For end-to-end TDS filing support, businesses may use TaxClear.in for professional tax compliance services.
Challan Details and CSI File
The next important step is challan reporting. The deductor must enter challan details such as:
BSR code,
challan serial number,
date of deposit,
amount of TDS/TCS,
interest, if any,
fee, if any,
penalty, if any,
minor head or major head, and
section code.
These details are available from the challan downloaded from the income tax portal. The CSI file is also required for validation.
The CSI file contains challan information such as payment amount, payment date, section and type of tax. It is used to verify that the tax payment has been correctly accounted for while filing the TDS/TCS return.
How to Download Challan and CSI File
The deductor should log in to the income tax portal using TAN, not PAN. This is important because CSI files and TDS/TCS payment details are linked with TAN-based login.
The general path is:
Login using TAN.
Go to e-File.
Select e-Pay Tax.
Go to Payment History.
Download challan details.
Select challan status enquiry or CSI file option.
Choose the relevant date range.
Download the CSI file.
While selecting the date range, deductors should ensure the full quarter and relevant payment dates are covered. If the date range is too narrow, some challans may not appear in the CSI file, leading to validation errors.
Deductee Details in Annexure
After challan details are entered, deductee-wise details must be added in the annexure section. This includes:
deductee PAN,
deductee name,
section code,
date of payment or credit,
amount paid or credited,
amount of tax deducted,
rate of TDS,
date of deduction,
reason for lower or non-deduction, if applicable,
certificate number, if applicable, and
Form 121 identification number, if applicable.
If a deductee has submitted a valid declaration or lower deduction certificate, the details should be entered carefully. Wrong reporting may create mismatch for the deductor and deductee.
Many users maintain deductee data in Excel. If the format is prepared properly, data can be copied into the RPU utility, making the process faster and reducing manual entry errors.
Form 121 and Lower Deduction Reporting
Under the new framework, Form 121 is relevant where a person gives a declaration for receipt of certain income without deduction of tax. If Form 121 details are applicable, the utility may require the unique identification number of the form.
Similarly, where tax is deducted at a lower rate or not deducted because of a valid certificate, the relevant reason code and certificate number should be reported correctly.
This step is important because deductees rely on accurate TDS reporting for their own tax credit and return filing.
Generating the FVU File
Once deductor, challan and deductee details are entered, the file should be saved and validated.
During validation, the CSI file must be attached. If there is an error, the utility will generate an error report. The deductor must correct the error and validate again.
Common validation errors include:
wrong BSR code,
wrong challan date,
challan mismatch,
incorrect PAN,
wrong section code,
deductee amount mismatch,
invalid date format, and
unmatched challan allocation.
After successful validation, the FVU file is generated. This is the file used for uploading the return.
Uploading TDS/TCS Return on the Portal
After generating the FVU file, the deductor should log in to the income tax portal using TAN.
The broad filing path is:
E-File,
Income Tax Forms,
File Income Tax Forms,
Forms as per Income-tax Act, 2025,
Deduction and Collection of Tax at Source,
select the relevant form,
select tax year and quarter,
upload the FVU file, and
proceed to e-verification.
For first-time TDS/TCS return filing, offline submission may be required through an authorised TIN facilitation centre, along with the relevant control statement such as Form 27A. Regular filers can generally upload online using TAN login.
For TDS correction, revised return and compliance support, businesses can connect with TaxClear’s TDS return filing services.
Key Practical Points
The process remains similar to the earlier TDS/TCS return filing system, but form numbers and section codes have changed.
Always use the latest RPU utility.
Download the CSI file using TAN login.
Match challans before entering deductee details.
Use the correct new form number.
Use the correct section code for each payment.
Validate the file and clear all errors before upload.
Download acknowledgement after filing.
Maintain challans, workings and deductee data for future reference.
Conclusion
TDS and TCS return filing for Tax Year 2026-27 requires extra care because of the new Income-tax Act, 2025 framework. The main changes are in form numbers, section codes, portal selection and utility version. However, the core compliance process remains familiar: collect data, download challans and CSI file, prepare the return in RPU, validate the file and upload it on the income tax portal.
Businesses should not treat the first quarter filing casually. Incorrect form selection, wrong challan mapping or deductee mismatch can lead to notices, correction statements and tax credit issues for deductees.
For professional TDS/TCS return filing, correction statements, challan matching and compliance support, visit TaxClear.in.
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