TDS returns in 2026: e-Filing, Form 140 and TRACES explained

For the current Form 140 workflow, the official instructions do not tell the deductor to upload the new quarterly return directly on TRACES. The deductor prepares and validates the return using the current RPU/FVU process, logs in to the Income Tax e-Filing portal with the TAN, uploads the zipped FVU, and e-verifies the form. If validation succeeds, the accepted form is sent to TRACES for further processing. Income Tax Department — Form 140 User Manual

The Income Tax Department's transition FAQ distinguishes events on or before 31 March 2026 from events on or after 1 April 2026. Old-period corrections continue under the old Act framework, while new-period reporting uses the forms and section references under the Income Tax Act, 2025. The FAQ also says the utilities and TRACES support old and new formats during the transition. Income Tax Department — TDS Compliance FAQs

1. Confirm that Form 140 is the correct statement for the payment type and tax year.
2. Download the latest RPU and matching validation utility/version referenced by the official process.
3. Prepare the deductor, challan and deductee records; validate and create the FVU file.
4. Convert the FVU file to the required zip format.
5. Log in to the Income Tax e-Filing portal using the registered TAN.
6. Navigate to the TDS/TCS form area, choose Form 140, the correct tax year, quarter and upload type.
7. Upload the zip, proceed to e-verification and retain the acknowledgement.
8. Check whether the form is accepted or rejected; correct any stated validation error.
9. After acceptance and TRACES processing, reconcile the processed statement, defaults and certificates as applicable.

The official manual warns that the FVU version uploaded must match the version shown on the e-Filing form screen. It also lists wrong tax-year selection, regular/correction mismatch, TAN mismatch and invalid FVU data among possible rejection causes.

• Separate pre-April 2026 and post-April 2026 transactions before preparing returns.
• Use the governing Act's section references for the relevant event date.
• Do not convert an old-period correction into the new format merely because it is filed after 1 April 2026.
• Update accounting, payroll and ERP mappings for the new terminology and section numbering.
• Reconcile challans, deductee identifiers, tax-year selection and return format before upload.
• Keep evidence of accepted status and later processing; an upload attempt alone is not proof of successful processing.

TRACES remains part of TDS administration and downstream processing. Depending on the statement and current facility, deductors use it for processed-statement information, defaults, corrections or supporting files and certificates. Always follow the current portal instructions for the particular task rather than assuming that every step occurs on the same portal.

General-information disclaimer: Portal routes, forms and utilities can change. Confirm the latest Income Tax Department, e-Filing, Protean and TRACES instructions before filing or correcting a statement.