TDS Return Filing (24Q, 26Q, 27Q and the New Forms 138, 140, 144)
Every business that deducts tax at source must report it each quarter in a TDS statement. From tax year 2026-27, Forms 24Q, 26Q and 27Q have become Forms 138, 140 and 144. The return for July to September 2026 is due on 31 October 2026.
What it is
When you pay salary, rent, professional fees, contract charges or interest above set limits, you deduct tax before paying and deposit it with the government. That is TDS. Depositing the money is only half the job. Each quarter you must also file a statement listing every deductee, their PAN, the amount paid and the tax deducted.
The statement is what credits the tax to each deductee’s PAN. Without it, the money stays against your TAN and never reaches their PAN. Your employee sees it in their annual tax statement, your vendor claims it in their return, and you issue TDS certificates from it. If the statement is late or wrong, the credit does not reach them.
For transactions up to 31 March 2026, statements are filed in the old Forms 24Q, 26Q and 27Q under the Income-tax Act, 1961. From 1 April 2026, the Income-tax Act, 2025 and Rule 219 of the Income-tax Rules, 2026 apply, and the forms have new numbers. Statements are prepared with the free utilities, validated with the File Validation Utility (FVU) and filed through the Income Tax e-filing portal.
Old and new TDS forms
| Statement for | Up to 31 March 2026 | From tax year 2026-27 |
|---|---|---|
| TDS on salary | Form 24Q | Form 138 |
| TDS on other payments to residents (rent, fees, contracts, interest) | Form 26Q | Form 140 |
| TDS on payments to non-residents | Form 27Q | Form 144 |
| Tax collected at source (TCS) | Form 27EQ | Form 143 |
| Salary TDS certificate | Form 16 | Form 130 |
| Non-salary TDS certificate | Form 16A | Form 131 |
A late statement for January to March 2026 is still filed in the old form. Anything from April 2026 onwards goes in the new one.
Who it applies to
Employers deducting from salary
Companies, LLPs, firms and others who deduct TDS from salaries file Form 138 each quarter. The salary annexures with full-year details are added in the fourth quarter, which is why it ties closely to monthly payroll compliance.
Businesses paying vendors and landlords
Anyone with a TAN who deducts tax on rent, professional fees, commission, contract payments or interest to residents files Form 140.
Payers to non-residents
Payments to non-residents need TDS and a quarterly Form 144. Think of a Faridabad export unit paying a software consultant abroad, or a family buying a flat from a relative who lives in Dubai.
Why it matters
Get your payees their credit
Employees and vendors see TDS in their annual tax statement only after you file. Late statements cause mismatches when they sit down for their own income tax return.
Keep the expense deductible
Under the 1961 Act, 30% of an expense can be disallowed under Section 40(a)(ia) if TDS on it is not deducted or paid. Correct TDS keeps that cost off your tax bill.
Avoid a fee nobody warns you about
The ₹200-a-day fee is charged when the statement is processed. Nobody needs to issue a notice for it to apply.
Documents required
Deductor details
- TAN and PAN of the deductor
- Login for the Income Tax e-filing portal and TRACES
- Responsible person’s name, PAN and DSC or EVC access
Payment and challan data
- Challan details for every deposit: BSR code, date, challan serial number
- Ledger of payments where TDS was deducted
- Lower or nil deduction certificates, if any
Deductee data
- PAN of every employee, vendor or landlord
- Salary breakup and declared deductions for the year (for Form 138)
- For non-residents: tax residency certificate and treaty details, where relied on
How it works
Reconcile deductions with challans
We match every deduction in your books with the challan that paid it. Here is the catch: one wrong section code on a challan, say contractor TDS paid under the code for professional fees, and the statement will show a short payment even though the money is with the government. Unmatched or short-paid amounts are caught here, not by the department later. If your books are kept up to date, this takes hours, not days.
Verify deductee PANs
An invalid PAN pushes the deduction to a higher rate and blocks the payee’s credit. We check PANs before the statement is built.
Prepare and validate the statement
We prepare Form 138, 140 or 144 for the quarter and run it through the FVU. Errors are fixed until the file passes.
File and keep the token
The validated file is uploaded on the e-filing portal with DSC or EVC. You get a token number, which is needed for any correction later.
Issue the certificates
Once processed, we download the certificates from TRACES: Form 130 for employees and Form 131 for other payees.
Timelines
Deposit TDS
By the 7th of the following month. Tax deducted in March is due by 30 April.
File quarterly statements
April–June: 31 July. July–September: 31 October. October–December: 31 January. January–March: 31 May.
Issue certificates
Form 16 for FY 2025-26 was due by 15 June 2026. From tax year 2026-27 the salary certificate is Form 130 and the non-salary certificate is Form 131.
What happens if you file late
Late fee of ₹200 a day
Section 234E charges ₹200 for every day of delay. The total is capped at the TDS in that statement, and the same fee applies to the new forms.
Penalty of ₹10,000 to ₹1,00,000
Section 271H allows this penalty for late or incorrect statements. It is not levied if you pay the TDS, fee and interest and file within one month of the due date.
Interest on late deduction or deposit
Section 201(1A): 1% a month from the date tax was deductible until deducted, and 1.5% a month from deduction until deposit. Part of a month counts as a full month.
Frequently asked questions
Has Form 24Q been replaced by Form 138?
Yes, for tax year 2026-27 onwards. Under the Income-tax Rules, 2026, salary TDS is reported in Form 138, non-salary TDS for residents in Form 140 and TDS on non-residents in Form 144. Form 24Q, 26Q and 27Q are still used for statements about transactions up to 31 March 2026, such as a late January–March 2026 return. The data you collect is much the same; what changes is the form and the utility version.
What is the due date for the July–September 2026 TDS return?
The due date is 31 October 2026. The quarterly due dates are 31 July, 31 October, 31 January and 31 May for the four quarters of the year. The tax itself should already have been deposited by the 7th of each following month. If you are reading this before 31 October, there is still time to reconcile challans and file without any late fee.
What is the late fee for a delayed TDS return?
The late fee is ₹200 for every day of delay, under Section 234E, capped at the total tax deducted in that statement. It is charged automatically when the statement is processed and must be paid before or along with filing. A statement that is a week late costs ₹1,400 in fee. Filing quickly once you notice the delay keeps the amount small and avoids the separate Section 271H penalty.
Do I have to file a TDS return if I deducted nothing in a quarter?
If no tax was deducted in a quarter, there is no deductee data to report, but you should file a declaration of non-filing on TRACES so the quarter is not flagged as a default. Where even one deduction was made, the full statement is due by the normal date. We check your ledgers each quarter and tell you clearly whether a filing is needed.
What happens if a deductee’s PAN is wrong in the statement?
The tax does not reach that person’s tax statement, so they cannot claim it in their return. A missing or invalid PAN can also make the deduction liable to a higher rate. The fix is a correction statement filed through TRACES against the original token number, within six years from the end of the relevant financial year. Once the correction is processed, the credit flows to the right PAN.
How long do I have to correct a filed TDS statement?
Six years from the end of the financial year in which the statement was due. The Finance (No. 2) Act, 2024 brought in this limit; older statements had to be corrected by 31 March 2025. Corrections are made by downloading the consolidated file from TRACES, editing it and uploading it against the original token. Within that window, a mistake can be put right.
Is interest on late TDS deposit different from the late fee?
Yes, they are separate charges. Interest under Section 201(1A) is 1% a month for late deduction and 1.5% a month for late deposit, with part of a month counted as a full month. The ₹200-a-day fee is for filing the statement late. You can owe both. Paying interest along with the TDS before filing keeps the statement clean and avoids a demand later.
When do employees get Form 16, now Form 130?
Form 16 for FY 2025-26 was due by 15 June 2026. From tax year 2026-27, the salary TDS certificate is Form 130, and Form 131 replaces Form 16A for other payees. Part A is generated on TRACES after the fourth-quarter salary statement is processed, which is why filing that statement on time matters. Employees can then file their returns with the right TDS figure.
Can a small business file TDS returns itself?
Yes, it can. The return preparation utility and FVU are free, and filing on the Income Tax e-filing portal needs only DSC or EVC. In practice, most errors come from mismatched challans and PANs, not from the software. You can also hand the quarterly reconciliation to us and simply approve the statement before it is filed.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Filing a TDS statement on time carries no government fee. A late statement attracts the ₹200-a-day fee under Section 234E, and late deduction or deposit carries interest at 1% or 1.5% a month.
Ready to begin?
Share your TAN and last quarter’s challans, and we will have your next TDS statement reconciled and filed before the due date.