Hi there! 
In our last edition, we spoke about the government clearing out decades-old income tax forms and introducing a new set under the Income-tax Act, 2025. If you’ve spent any time on Tax Q&A this week, you’ve likely come across our explainers on these new forms and how they affect your filing.
Think about how routine these filings are.
Whether you’re running payroll at a startup or a large corporation and deducting tax (TDS) from an employee’s salary, or you’re a business owner withholding TDS before paying contractors or professionals, these actions form the backbone of day-to-day compliance.
For individuals as well, common situations involving payments to non-residents (NRIs), such as rent or property purchases, require careful deduction and reporting. And in certain transactions, sellers also collect Tax Collected at Source (TCS) from buyers as part of this reporting framework.
Across each of these scenarios, the familiar return forms are being phased out and replaced with a new set of identities and filing structure.
We’ve handpicked threads on these topics in today’s edition.
TOP THREADS
What is Form 138, and how is it structured for filing TDS on salary payments?
If you’re deducting tax from employee salaries, Form 138 is the new return you’ll file to report those deductions. By filing it, you’re essentially telling the ITD how much salary you’ve paid and the TDS you’ve deducted for each employee. The form is structured in two parts: one is filed for your regular quarterly updates, and the other is filed specifically in…Continue Reading
What is Form 140, and when should businesses use it for non-salary payments?
Form 140 is the ‘everything else’ return for resident payments. Whether it’s professional fees, contractor bills, commissions, or office rent, this is where those deductions live. It forms the backbone of business-to-vendor compliance, but if you miss filing, it comes with a daily penalty of…Continue Reading
What is Form 144 for reporting TDS on payments to NRIs?
Whenever you send money across borders, be it for a property purchase, rent, or a consultancy fee to a non-resident, the TDS deducted must be reported through Form 144. To keep things organised, the form is divided into three sections covering deductor details, TDS and…Continue Reading
What is Form 143, and which transactions require filing a TCS return?
Form 143 applies to specific categories of goods and services where the government wants to track high-value or specific types of spending. These include foreign remittances, sale of alcoholic liquor, sale of motor vehicles above ₹10 lakhs and…Continue Reading
FAQs
Why has the government renumbered and reorganised these forms?
Over the years, every change in provisions led to new forms being added, often covering similar transactions. That created overlap and made it harder to track which form applied in which situation. The reorganisation aims to reduce this clutter by retiring older forms and moving to a more structured, streamlined system.
When do these new forms officially take effect?
The new forms will be effective from April 1, 2026, and will apply for Tax Year 2026–27 onwards. From that date onward, reporting will follow the new form structure.
Is there any change in due dates for filing these returns?
While the form numbers and reporting structure have been changed under the Income-tax Act, 2025, the due dates for filing TDS and TCS returns remain the same as before.
RESULTS FROM LAST DIGEST
Which form replaces Form 15G/H for nil-TDS declarations?
A) Form 121 (85%) 
B) Form 141 (15%)
C) Form 138 (0%)
D) Form 144 (0%)
85% of people chose the right answer. Well done!