Introduction
From April 1, 2026, the Income Tax portal has undergone a significant transformation to align with the provisions of the Income Tax Act, 2025, while still retaining the utilities of the Income Tax Act, 1961. One of the most notable changes is the revamped process for TDS payments. The portal now distinctly separates payments for FY 2025-26 and earlier from those applicable to Tax Year 2026-27 onwards. This shift is designed to bring greater clarity, compliance accuracy, and user convenience. In this blog, we’ll walk through the step-by-step process for both timelines so that deductors can adapt smoothly to the new system.
TDS payment process for FY 2025-26 and previous years
Step 1: Login to incometax.gov.in using TAN credentials
Step 2: Go to E-file>> E-pay tax
Step 3: Select “Income Tax Act, 1961”:
Step 4: Click “New payment”:
Step 5: Select AY and click “Pay TDS/TCS”:
Step 6: Select section, major head, enter amount and make the payment.
TDS payment for FY 2026-27 and onwards
Step 1: Login to incometax.gov.in using TAN credentials
Step 2: Go to E-file>> E-pay tax
Step 3: Select “Income Tax Act, 2025”:
Step 4: Click “New payment”:
Step 5: Select TY and click “Pay TDS/TCS”:
Step 6: Select major head and residential status of deductee i.e. payee:
Step 7: Add description of the payments and amount of TDS. You can add multiple payment descriptions i.e. section codes in one challan:
Step 8: Enter other amounts such as interest, late fee:
Step 9: Check preview:
Step 10: Make the payment through your payment gateway.
Difference points in payment process
| Step | FY 2025-26 & Before (Act, 1961) | FY 2026-27 Onwards (Act, 2025) |
| Act Selection | Select Income Tax Act, 1961 | Select Income Tax Act, 2025 |
| Year Selection | Select Assessment Year (AY) | Select Tax Year (TY) |
| Residential status of deductee | Required | Not required |
| Payment Description | Single section per challan | Multiple payment descriptions (section codes) allowed in one challan |
| Additional Amounts | Enter Interest/late fee for each section separately amount only | Enter Interest/ late fee in total after sections selection |
Conclusion
The revamped TDS payment process marks a pivotal step in modernizing tax compliance. By introducing separate workflows for pre-2026 and post-2026 payments, the Income Tax portal ensures that users can navigate obligations under both the Income Tax Act, 1961 and the new Income Tax Act, 2025 with ease. While the changes may initially feel unfamiliar, the structured steps and enhanced features; such as multiple payment descriptions in a single challan; are designed to simplify compliance and reduce errors. Staying updated and adapting to these changes will empower deductors to manage their responsibilities confidently in the new tax era.
Blog By : Mittal & Co.