New form numbers from tax year 2026-27: under the Income-tax Act, 2025, the quarterly TDS returns are Form 138 (salary, earlier 24Q), Form 140 (other payments to residents, earlier 26Q), Form 144 (non-residents, earlier 27Q) and Form 143 (TCS, earlier 27EQ). Returns and corrections for quarters up to March 2026 still use the old forms. Quarterly TDS due dates and the ₹200-a-day late fee are unchanged; TCS returns in Form 143 follow the due dates in the Income-tax Rules, 2026.
Two separate obligations: depositing and reporting
Deducting and depositing TDS is only half the compliance — the deductor also has to file a quarterly return reporting who the tax was deducted from, how much, and under which section, which is what generates the deductee's credit in their own Form 26AS. A business that deposits TDS correctly but files the return late, or incorrectly, still causes real problems for the people it deducted from, since their credit doesn't show up until the return is filed and processed.
This makes TDS return filing something that affects other people's compliance directly, not just the deductor's own — an employee's salary certificate (Form 130, earlier Form 16) and a vendor's TDS certificate (Form 131, earlier Form 16A) both depend on the deductor's return being filed correctly and on time.
Which TDS return form applies
| Form (from April 2026) | Earlier form | Covers |
|---|---|---|
| Form 138 | Form 24Q | TDS on salary payments to employees |
| Form 140 | Form 26Q | TDS on payments other than salary to residents — contractors, professionals, rent, interest, and others |
| Form 144 | Form 27Q | TDS on payments to non-residents |
| Form 143 | Form 27EQ | Tax collected at source (TCS), rather than deducted, on specified transactions |
Documents required each quarter
- Details of every payment made during the quarter that attracted TDS, with the deductee's PAN, the amount, and the applicable section.
- Challan details for the TDS actually deposited, to reconcile against what's being reported.
- Deductee details — name, PAN, and address for each person or entity TDS was deducted from.
- For salary TDS (Form 138, earlier Form 24Q): employee-wise salary breakup and any tax regime declaration made by the employee.
- Lower or nil deduction certificates, where a deductee has obtained one from the department.
The quarterly TDS return process
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Compiling deductions for the quarter
Every payment attracting TDS during the quarter is compiled, with the correct section, rate and deductee details confirmed against supporting invoices or payment records.
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Challan reconciliation
TDS actually deposited is reconciled against what's being reported in the return — a mismatch here is rejected at the filing stage or flagged in processing.
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Preparing and validating the return
The return is prepared in the prescribed format and validated using the department's utility before filing, which catches most structural errors before submission.
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Filing the return
The validated return is filed with the TIN facilitation centre or through the online portal, generating a token/acknowledgement number.
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Issuing TDS certificates
Once the return is processed, Form 130 (annually, for salary) or Form 131 (quarterly, for other payments) — earlier Forms 16 and 16A — is generated and issued to each deductee.
Due dates and penalties
| Quarter | Period | Due date |
|---|---|---|
| Q1 | April – June | 31 July |
| Q2 | July – September | 31 October |
| Q3 | October – December | 31 January |
| Q4 | January – March | 31 May |
| Default | Consequence |
|---|---|
| Late filing of a TDS return (the Section 234E fee) | ₹200 per day of delay, up to the amount of TDS deducted for that quarter |
| Failure to file at all, or a materially incorrect return (Section 271H of the 1961 Act) | Penalty of ₹10,000 up to ₹1,00,000, in addition to the Section 234E fee |
| Late deposit of TDS | Interest at 1.5% per month from the date of deduction to the date of deposit |
| Failure to deduct TDS at all | Interest at 1% per month from the date it should have been deducted, plus disallowance of the corresponding expense |
Practical notes from our engagements
- PAN errors in deductee details. An incorrect PAN means the TDS credit doesn't reflect in the right person's Form 26AS, which typically surfaces as a complaint from the deductee long after the return was filed.
- Challan and return not reconciled before filing. A return that reports TDS not actually matched to a deposited challan gets flagged during processing, delaying the credit for every deductee named in that return, not just the one causing the mismatch.
- TDS certificates not issued promptly after filing. Vendors and professionals rely on Form 131 (earlier Form 16A) for their own return filing — delaying its issue after the quarterly return is processed causes downstream problems for people who have no other way to know their TDS was actually deducted correctly.
- Section 194T and other recent TDS provisions not yet reflected in the return process. New or recently revised TDS sections — like the Section 194T obligation on partner payments — need to be built into the quarterly compilation, not treated as an afterthought once the return is already being prepared.
How we handle TDS return filing
We reconcile deposited challans against the return before filing, so processing isn't delayed by a mismatch that could have been caught earlier. PAN and deductee details are verified against supporting documents rather than taken from memory or a prior quarter's file, and TDS certificates are issued to deductees promptly once each return is processed.
Related services
Frequently asked questions
How often do I need to file a TDS return?
Quarterly — for the periods April-June, July-September, October-December and January-March, each with its own due date.
What's the difference between Form 138 and Form 140 (earlier 24Q and 26Q)?
Form 138 (earlier Form 24Q) covers TDS on salary paid to employees. Form 140 (earlier Form 26Q) covers TDS on other payments to residents — contractors, professionals, rent, and interest, among others.
What happens if I deposit TDS on time but file the return late?
A late fee of ₹200 per day applies under Section 234E, up to the TDS amount for that quarter, regardless of whether the tax itself was deposited on time.
When do I need to issue Form 130 or Form 131 (earlier Form 16 and 16A)?
Form 130 (earlier Form 16) is issued annually to employees after the fourth quarter's return is processed. Form 131 (earlier Form 16A) is issued quarterly to other deductees, after each quarter's return is filed and processed.
What if a deductee's PAN is entered incorrectly on the return?
The TDS credit won't reflect correctly in that person's Form 26AS, and a correction return needs to be filed to fix it — this is one of the most common sources of deductee complaints.
Is there a penalty for not deducting TDS at all, even if none was due to be deposited?
Yes — failing to deduct where required attracts interest from the date it should have been deducted, and the corresponding expense can be disallowed in the deductor's own tax computation.
Do I need to file a TDS return if I didn't deduct any tax in a quarter?
If you have a TAN and are registered as a deductor but had no deductions in a quarter, a declaration of non-filing can generally be made instead of a nil return, though this depends on your specific registration and history — worth confirming case by case.
Which forms apply to the quarter I'm filing now?
Quarters up to January–March 2026 (tax deducted in FY 2025-26) are filed, and corrected, on the old forms — 24Q, 26Q, 27Q and 27EQ. From the April–June 2026 quarter onward, tax deducted in tax year 2026-27 is reported in Forms 138, 140, 144 and 143.