Q1 TDS TCS Return Filing 2026-27: New Forms & Due Dates

What Happened?

The Central Board of Direct Taxes (CBDT) has released updated TDS and TCS return filing forms for Q1 of Tax Year 2026-27 under the Income Tax Act, 2025. The key change is the introduction of a new quarterly filing framework and a revised TCS return due date, effective from July 2026. Taxpayers filing TDS/TCS returns must now comply with the new form structure and meet the updated deadlines.

Background & Legal Context

Under the Income Tax Act, 2025, the concept of 'Tax Year' replaces the older 'Financial Year' terminology in certain contexts. TDS (Tax Deducted at Source) is governed under Section 192-194 of the Income Tax Act, 2025, while TCS (Tax Collected at Source) falls under Section 206C-206D.

The quarterly return filing requirement was introduced to enable real-time tax compliance and faster processing. The Q1 period for Tax Year 2026-27 covers April 1 to June 30, 2026, and returns must reflect all TDS/TCS transactions during this quarter.

• TDS Returns (Form 24Q / New Form): Filed by employers, banks, and other specified deductors who deduct tax on salary, interest, rent, commission, etc.
• TCS Returns (Form 27EQ / New Form): Filed by collectors of tax on sale of goods, scrap, minerals, etc., under Section 206C.
• Legal Basis: Rule 31 and Rule 37 of the Income Tax Rules, 2025 (as amended) now prescribe quarterly filing instead of monthly/annual.
• Assessment Year Link: Q1 TDS/TCS filed in Jul 2026 applies to AY 2026-27.

Previous Position (Under IT Act 1961): Earlier, TDS returns were filed monthly (by 15th of next month) and TCS returns quarterly or annually depending on the category. The new Act 2025 has streamlined this into a uniform quarterly structure for consistency and GST-like compliance.

New Forms and Key Changes

1. Revised TDS Return Form

• The new quarterly TDS form now includes separate columns for different categories of deduction (salary, interest, rent, commission, professional fees, etc.).
• All deductees must be reported with Aadhaar/PAN, and deductee details are now cross-checked in real-time with GSTN database.
• Deductors must certify compliance with withholding requirements under Section 194A (interest), Section 194D (insurance), and Section 194LA (capital gains).
• The form is now Form 24Q-2025 (updated version), available on the Income Tax e-filing portal.

2. Revised TCS Return Form

• The new Form 27EQ-2025 consolidates reporting of TCS collected under different sub-sections of Section 206C.
• Collectors of TCS on sale of goods (Section 206C(1)), scrap (Section 206C(1H)), and minerals (Section 206C(1F)) now file one unified quarterly return.
• The form requires buyer/collector Aadhaar/PAN and GST registration details for verification.
• TCS on e-commerce transactions (under Section 194O) is also included in this form, making it a one-stop compliance tool.

3. New Due Date for TCS Return

This is the most important change for businesses. The TCS return due date has been revised from the 15th of the following month to the 21st of the following month (i.e., for Q1, the due date is 21 July 2026). This 6-day extension was granted to allow collectors more time to gather buyer invoices and GST details.

What Does This Mean for You?

For Employers (Deductors of TDS on Salary):

• You must file Form 24Q-2025 by the last date of the month following the end of the quarter. For Q1 (Apr-Jun 2026), the due date is typically 31 July 2026.
• Ensure all employee details (Aadhaar, PAN, salary structure) are updated in your payroll system before filing.
• If you deduct TDS on non-salary payments (rent, professional fees), they must be reported separately in the same form.
• Late filing attracts a penalty of Rs. 100 per day of delay under Section 271C.

For Banks and Financial Institutions (Deductors on Interest/Dividends):

• TDS on interest (Section 194A) and TCS on bank charges must be reported quarterly using the new unified form.
• The extended due date (21st of next month for TCS) gives you more breathing room, but TDS on interest still follows the standard monthly/quarterly filing schedule.
• Cross-checking with Aadhaar databases is now mandatory; if customer Aadhaar is not available, you must obtain it or file the return with a 'nil' or estimated Aadhaar field.

For E-commerce Platforms (Collectors of TCS under Section 194O):

• The new Form 27EQ-2025 consolidates your TCS reporting. Instead of separate filings, you now file one quarterly return.
• The revised due date of 21st of the following month helps you sync with seller GST compliance timelines.
• You must report the seller's GSTIN, PAN, and transaction amount for each sale.

For Real Estate and Goods Traders (Collectors of TCS on Sale of Goods/Property):

• If you collect TCS under Section 206C(1) (on sale of goods exceeding Rs. 50 lakh in a year), the new quarterly form requires you to report buyer details and GST registration numbers.
• The extended due date benefits you, as real estate transactions often involve delayed documentation.

General Compliance Impact:

Quarterly filing replaces monthly/annual chaos. You now have a uniform compliance calendar aligned with GST quarters. However, non-compliance carries stricter penalties: Rs. 100/day for late filing (max. Rs. 25,000 under Section 271C), plus interest on unpaid TDS/TCS under Section 220.

What Should You Do Now?

Step 1: Update Your Systems

• Ensure your accounting/payroll software is updated to generate TDS/TCS data in the new form format (24Q-2025 / 27EQ-2025).
• Test the export feature before filing the actual Q1 return.

Step 2: Verify Deductee/Collector Details

• Collect Aadhaar and PAN from all employees, customers, and vendors before 31 May 2026.
• If Aadhaar is not available, document your attempts to obtain it (for compliance under Section 139A).

Step 3: Compile Q1 Data

• Segregate all TDS/TCS transactions (salary, interest, rent, commissions, e-commerce, goods sales) by category.
• Cross-check TDS deducted against the threshold limits under each section (e.g., Rs. 2,500 for interest, Rs. 30,000 for commission).

Step 4: File by Due Date

• TDS Form 24Q-2025: File by 31 July 2026 on the Income Tax e-filing portal (www.incometax.gov.in).
• TCS Form 27EQ-2025: File by 21 July 2026 on the same portal.
• Do not miss the deadline; late filing is now tracked in real-time.

Step 5: Cross-Verify with Deductee Returns

• Once your TDS/TCS return is processed, cross-check with individual deductee income tax returns (ITR) filed for AY 2026-27.
• Mismatches trigger notices under Section 142(1) to both deductor and deductee.

Key Takeaways

• New Quarterly Framework: TDS and TCS now follow a uniform quarterly filing schedule under the Income Tax Act, 2025, effective Q1 2026-27 (Apr-Jun 2026).
• Revised Forms: Form 24Q-2025 for TDS and Form 27EQ-2025 for TCS include enhanced Aadhaar/PAN/GST verification fields.
• Extended TCS Due Date: TCS returns are now due by 21st of the following month (instead of 15th), giving collectors 6 extra days to compile buyer data.
• Stricter Penalties: Late filing attracts Rs. 100/day penalty (max. Rs. 25,000), and mismatches with deductee ITRs trigger automatic notices.
• Alignment with GST: Quarterly compliance under IT Act 2025 now mirrors GST filing cycles, simplifying compliance for businesses.

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