Do I still need the FVU utility to file a TDS return?

Not for the online TRACES route. The return is validated on TRACES itself. The FVU route remains for returns prepared in utilities or software. [VERIFY]

How do I e-verify a TDS return on TRACES?

After validation, TRACES lets you e-verify using Aadhaar OTP or the Digital Signature Certificate (DSC) of the authorised person.

Can I upload many deductee entries at once?

Yes. TRACES offers a Bulk Upload option. Download the deductee template, fill it in and upload it as a CSV file.

Which TDS forms can be filed online on TRACES?

Form No. 138 (salary, earlier 24Q), Form No. 140 (non-salary, earlier 26Q), Form No. 144 (non-residents, earlier 27Q) and Form No. 143 (TCS, earlier 27EQ), from Tax Year 2026-27.

TDS Return Online Filing on TRACES from Q2 2026-27

TDS return online filing on TRACES for Forms 138, 140, 143 and 144 from Q2 Tax Year 2026-27

TDS return filing has changed from Q2 of Tax Year 2026-27. Deductors can now prepare and file quarterly TDS/TCS returns directly online on the TRACES portal. Earlier, a TDS return had to be prepared in a utility, validated through the File Validation Utility (FVU), uploaded on the income tax e-filing portal, and then transferred to TRACES for processing. The new "Prepare & File Online" facility removes these steps: the return is prepared, validated and e-verified on TRACES itself.

Which TDS returns can be filed online on TRACES

Form under Income-tax Act, 2025	Earlier form	Used for
Form No. 138	Form 24Q	TDS on salary
Form No. 140	Form 26Q	TDS on payments other than salary to residents
Form No. 144	Form 27Q	TDS on payments to non-residents
Form No. 143	Form 27EQ	TCS (tax collected at source)

According to the note shown on TRACES, these statements can be prepared and submitted online from Tax Year 2026-27. Users have already filed Form No. 140 for Q2 (July to September 2026) through this route.

Old process vs new online process

Step	Old process	New TRACES online filing
Preparation	Return Preparation Utility (RPU) or third-party software	Online form on TRACES
Validation	File Validation Utility (FVU)	Validation on TRACES before submission
Submission	Upload on the e-filing portal or at a TIN facilitation centre	Submitted on TRACES itself
Challans	Typed in from challan receipts	Unconsumed challans imported from TRACES; can also be added manually
Verification	DSC or EVC on the e-filing portal	Aadhaar OTP or DSC of the authorised person on TRACES
Processing	After the statement is transferred from the e-filing portal to TRACES	Directly on TRACES

How to file a TDS return online on TRACES: step by step

Step 1: Open the filing section and select Form 140

1. Log in to TRACES and go to e-file & View → File TDS/TCS Forms & Statements.

TRACES Form 140 – e-file & View menu with File TDS/TCS Forms & Statements option

2. Under File New Form, click File Now on Form No. 140.

TRACES Form 140 – File Now option for Form No. 140 under File New Form

Step 2: Select tax year, quarter and filing type

3. Pick the Tax Year (2026-27) from the dropdown.

TRACES Form 140 – selecting tax year 2026-27

4. Choose Quarter (Q2), Filing Type (Regular) and Prepare & File Online, then click Proceed. You can prepare up to 200 records online.

TRACES Form 140 – selecting quarter Q2, regular filing type and Prepare & File Online

Step 3: Fill in statement, deductor and responsible person details

5. Check the auto-filled particulars and choose the Deductor Type.

TRACES Form 140 – particulars of statement and deductor type dropdown

6. If you see the "Responsible Person details are mandatory" error, click Edit Details.

TRACES Form 140 – Responsible Person details mandatory error with Edit Details button

7. Click Fetch Profile Details, or Go to Profile to update them, then Save & Continue.

Step 4: Add challan details

8. On the Challan Details tab, choose View & Import Unconsumed Challans/BINs or Add Challan.

TRACES Form 140 – Challan Details tab with View & Import and Add Challan options

9. To import, select the tax year and click Show. Unconsumed challans with minor head 200/400 are listed here. BINs can only be imported, not added manually.

10. To add one manually, enter the tax, interest, fee, BSR code, challan serial number, deposit date and minor head, then click Add Challan.

TRACES Form 140 – Add Challan form with tax, BSR code, challan serial number and deposit date

11. You'll see a success message. Click Add Deductee Details.

TRACES Form 140 – challan added successfully message

Step 5: Add deductee details in Annexure 1

12. Choose Add Bulk Deductee Details or Add Deductee Details.

TRACES Form 140 – Annexure 1 deductee details with bulk and single entry options

13. For bulk upload, download the template and help file, fill them in, and upload the CSV (max 5 MB).

14. For a single entry, enter PAN, name, section code, amount, TDS and dates, then click Add Deductee Details.

TRACES Form 140 – Enter Deductee Details form with PAN, section code and TDS amount

15. The deductee appears in the list. Click Challan Mapping.

Step 6: Map challans to deductees and validate

16. Click Challan Mapping against the challan.

TRACES Form 140 – Challan Mapping link against the added challan

17. Tick the deductee records you want to map.

TRACES Form 140 – Deductee Mapping screen to select deductee records

18. Check that the Difference Amount is ₹0.00, then click Save.

TRACES Form 140 – Deductee Mapping with difference amount ₹0.00 and Save button

19. Mapped Amount now equals Challan Amount. Click Validate Statement.

20. Validation runs in the background. Click Refresh later to check the status.

TRACES Form 140 – Validating Statement message with Refresh button

Step 7: Submit and e-verify

21. Confirm the statement and proceed to e-verification.

TRACES Form 140 – statement confirmation before e-verification

22. Choose Aadhaar OTP or DSC to e-verify.

TRACES Form 140 – e-verification options Aadhaar OTP or DSC

23. If you chose Aadhaar OTP, click Proceed and enter the OTP sent to the mobile number linked with Aadhaar. Once verified, the statement is submitted, and you can track its status under e-file & View → View Filed Forms & Statements.

TRACES Form 140 – Aadhaar OTP verification to submit the statement

What this means for deductors and CA firms

Small returns with a few deductees can be filed in minutes without RPU, FVU or the e-filing portal.
Challans are imported from TRACES, which reduces typing mistakes in BSR code, date and serial number.
Errors such as invalid PANs or unmapped amounts show up before submission instead of after processing.
Returns with hundreds of deductee rows will still be easier to prepare in TDS software and upload in bulk.

For CA firms that file returns for many TANs, the online route is useful for quick, low-volume returns. For high-volume deductors, TaxCPC prepares and validates Forms 138, 140, 144 and 143 in bulk, maps old sections to the new section codes, and generates TDS certificates.

Due date for Q2 is 31 October 2026

The quarterly TDS statement for July to September 2026 is due by 31 October 2026. CBDT and CPC-TDS have not yet issued a formal notice on online filing, and the TRACES home page still lists it as coming soon, so check the TRACES e-tutorial before filing. We will update this post when official guidance is released.

Frequently Asked Questions

Yes. From Q2 of Tax Year 2026-27, deductors can prepare, validate and e-verify Forms 138, 140, 143 and 144 directly on TRACES using the Prepare & File Online option.

About the author

Mukul Thukral

Squad Lead

CA Finalist with nearly eight years of professional experience in taxation, compliance, and financial reconciliation. His expertise spans direct tax compliance, TDS matters, statutory reporting, tax audit support, and reconciliation projects, complemented by approximately four years of experience in GST and indirect tax compliance. His role now also encompasses marketing, sales, and business development, combining his technical expertise with a practical understanding of business requirements and client needs. Through his blogs, Mukul shares clear, practical perspectives on taxation, regulatory developments, and technology-enabled compliance to help businesses and professionals navigate complex requirements with confidence.

All articles by Mukul Thukral

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TDS Returns Can Now Be Filed Online on TRACES from Q2 of Tax Year 2026-27