3705622 - Clarification on Withholding Tax Return Updates for Income Tax Act 2025 in SAP S/4HANA Cloud Public Edition

The Income-tax Act, 2025, effective April 1, 2026, introduces a unified framework for TDS and TCS.

SAP S/4HANA Cloud Public Edition

The Income Tax Act 2025 introduces consolidated amendments to income tax laws, effective from April 1, 2026.

Current Status and Dependencies: The Income Tax department published the File Validation Utility (FVU) data structures for the newly introduced quarterly return forms on June 19, 2026, and updated the file structure on June 30, 2026. The changes have been available in the Cloud Customer environment since July 20th.

Complete the following steps as suggested:

• Apply the mandatory public cloud relevant configuration changes as detailed in SAP Note 3773580.  

Refer to Regulatory Change Manager for further updates and changes related to The Income-tax Act, 2025.

Note: If you have a requirement to file TDS and TCS quarterly returns outside of the SAP ERP system, you can follow the instructions provided 3774399 to download the transactional data required for preparing and filing the quarterly returns manually.

3702151 - Impact of Indian Income Tax Act 2025 Amendments on Official Withholding Tax Keys - SAP for Me

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