TDS statements can be filed directly through TRACES portal: What changed from tax year 2026–27? Expert explains

TDS and TCS compliance has moved to an online filing setup from Tax Year 2026-27 onwards, changing how deductors submit quarterly statements. The process brings fresh forms, a separate compliance environment, and updated filing steps. Here’s what deductors need to know.

Tax deducted at source (TDS) and tax collected at source (TCS) statements can now be filed directly online through the TRACES portal from Tax Year 2026-27, which started on 1 April 2026.

A deductor is a person or entity that deducts TDS from a payment before making it to the recipient.

The facility eliminates the earlier process of filing the statement through the Income Tax portal and waiting for it to be transferred to TRACES for further processing. Here's what you need to know.

What has changed with online TDS statement filing facility on TRACES?

Siddharth Maurya, Founder and Managing Director, Vibhvangal Anukulara, said the change is part of the alignment of the TRACES ecosystem with the Income-tax Act, 2025 and the new Income-tax Rules, 2026.

According to him, deductors now have a separate compliance environment on TRACES, where they can electronically file their TDS and TCS statements. The earlier framework used Forms 24Q, 26Q, 27Q and 27EQ. These have now been replaced by Forms 138, 140, 144 and 143, respectively.

“The TRACES portal already directs users to a separate compliance environment for Tax Year 2026-27 onwards,” he added.

Which TDS and TCS forms can be filed directly through TRACES?

Maurya said the four major quarterly TDS/TCS statements from Tax Year 2026-27 are: