Tax compliance upgrade: TDS rules to change from FY 2026. What salaried employees & SMEs must know

Filing taxes and declaring the correct income is not just a compliance formality — it is the cornerstone of financial transparency and smooth personal as well as business financial management. With every Budget and policy tweak, the government aims to make this process cleaner, more digital-friendly, and less prone to disputes. Now, starting April 1, 2026, India will witness one of the biggest overhauls of its Tax Deducted at Source (TDS) system. Advertisement

In a post on X (formerly Twitter), CA Nitin Kaushik explained, “India’s TDS Overhaul Is Coming (April 2026). If you’re salaried, a business owner, or run an SME — this will change how your income tax works.”

Currently, the TDS framework is riddled with challenges — wrong deductions, frequent mismatches, and endless reconciliation