Under the Income-tax Rules, 2026 (Notification No. 22/2026), quarterly TDS return forms are renumbered for FY 2026-27: Form 24Q becomes Form 138, Form 26Q becomes Form 140, Form 27Q becomes Form 144, and Form 27EQ becomes Form 143.
Statutory Framework: Renumbering Quarterly TDS/TCS Statements
The Central Board of Direct Taxes (CBDT) issued Notification No. 22/2026 (G.S.R. 198(E)) on 20 March 2026, establishing the Income-tax Rules, 2026 with effect from 1 April 2026. This comprehensive reform streamlined all quarterly tax deduction and collection returns into a logical 130–145 series.
Tax deductors and corporate tax managers filing quarterly statements for payments executed during FY 2026-27 (Q1 starting April 2026) must adopt the new form designations across ERP systems, NSDL/TRACES software, and e-Filing portals.
Master Mapping Table: Old TDS Return Forms vs New 2026 Forms
| Legacy Form (1962 Rules) | New Form (2026 Rules) | Tax Deduction / Collection Nature | Statutory Rule Reference | Quarterly Due Date |
|---|---|---|---|---|
| Form 24Q | Form 138 | Quarterly Statement of TDS on Salary (Sec 192) | Rule 31A(1)(a) | 31 July, 31 Oct, 31 Jan, 31 May |
| Form 26Q | Form 140 | Quarterly Statement of Non-Salary Domestic TDS | Rule 31A(1)(b) | 31 July, 31 Oct, 31 Jan, 31 May |
| Form 27Q | Form 144 | Quarterly Statement of Non-Resident TDS (Sec 195) | Rule 31A(1)(c) | 31 July, 31 Oct, 31 Jan, 31 May |
| Form 27EQ | Form 143 | Quarterly Statement of TCS (Sec 206C) | Rule 31AA(1) | 15 July, 15 Oct, 15 Jan, 15 May |
Detailed Section Coverage in Form 140 (Formerly Form 26Q)
Form 140 serves as the primary quarterly return for all domestic non-salary tax deductions. Deductors must report payments and TDS breakdown under the following key statutory sections:
- Section 194C (Payments to Contractors): 1% for Individual/HUF contractors, 2% for corporate contractors. Threshold: ₹30,000 single transaction / ₹1,00,000 annual aggregate.
- Section 194J (Professional & Technical Fees): 2% for technical services and royalty, 10% for professional services and director fees. Threshold: ₹30,000.
- Section 194I (Rent): 2% for plant & machinery, 10% for land & building. Threshold: ₹2,40,000 per annum.
- Section 194H (Commission & Brokerage): 2% (reduced from 5% by Finance Act 2024). Threshold: ₹15,000.
- Section 194Q (Payment for Purchase of Goods): 0.1% on purchase value exceeding ₹50 Lakhs for buyers with turnover > ₹10 Crore.
- Section 194R (Benefits or Perquisites in Business): 10% on business benefits exceeding ₹20,000.
Form 138 (Salary TDS Return) & Annexure II Reporting
Form 138 (formerly Form 24Q) covers tax deducted from employee salaries under Section 192. In Quarter 4 (Q4), deductors must furnish Annexure II, which contains detailed breakup of employee gross salary, perquisites, exempt allowances under Section 10, deductions under Chapter VI-A (80C, 80D, 80CCD), and tax regime election (New Regime Section 202 vs Old Regime).
Accurate reporting in Form 138 Annexure II is crucial because the Income Tax Department automatically pre-fills employee Income Tax Returns (ITR-1 / ITR-2) based on the Annexure II data processed by TRACES.
PAN Validation & Non-Filer Higher TDS Rules (Sections 206AA & 206AB)
Prior to submitting Form 140 or Form 144, deductors must validate payee PANs against the official Income Tax portal. The 2026 Rules retain strict statutory enforcement mechanisms:
- Section 206AA (No PAN / Invalid PAN): Mandatory 20% floor rate (5% for Section 194Q) if the payee fails to furnish a valid PAN.
- Section 206AB (Higher TDS for Non-Filers): Applies to specified persons who have not filed income tax returns for the preceding financial year and whose aggregate TDS/TCS exceeded ₹50,000. Rate is higher of twice the statutory rate or 5%.
Unchanged Quarterly Return Filing Due Dates
While form numbers have changed, the statutory deadlines for filing quarterly returns remain unadjusted:
- Quarter 1 (April to June): Due on or before 31st July (15th July for TCS Form 143).
- Quarter 2 (July to September): Due on or before 31st October (15th October for TCS Form 143).
- Quarter 3 (October to December): Due on or before 31st January (15th January for TCS Form 143).
- Quarter 4 (January to March): Due on or before 31st May (15th May for TCS Form 143).
Transitional Compliance: Managing FY 2025-26 Q4 vs FY 2026-27 Q1
Deductors closing their accounts in April and May 2026 face a dual-system requirement:
- Q4 FY 2025-26 Returns (Filed in May 2026): Must be filed under the legacy form names (Form 24Q, Form 26Q, Form 27Q) as the underlying transactions pertained to FY 2025-26.
- Q1 FY 2026-27 Returns (Filed in July 2026): Must be filed under the new form designations (Form 138, Form 140, Form 144) for all deductions made from 1 April 2026 onward.
Penalties for Late Filing: Section 234E & Section 271H
Failure to file quarterly TDS statements within prescribed due dates results in heavy financial penalties:
- Section 234E Fee: Mandatory fee of ₹200 per day for every day of delay, capped at the total amount of TDS deductible for the quarter.
- Section 271H Penalty: Assessing Officers can levy a penalty ranging from ₹10,000 to ₹1,00,000 if the return is delayed by more than one year or contains incorrect information.
Worked Numerical Example: Deductor Filing FY 2026-27 Q1 TDS Return
M/s Apex Consulting Pvt Ltd deducts ₹4,50,000 in non-salary domestic TDS (contractor, professional fee, rent) during April–June 2026. All tax is deposited by the 7th of each following month via Challan ITNS 281 / e-Pay Tax.
- Applicable Statutory Form: Form 140 (formerly Form 26Q).
- Filing Due Date: 31 July 2026.
- Corresponding TDS Certificate: Form 131 (formerly Form 16A) to be issued to vendors by 15 August 2026.
Interactive Form Converter & Compliance Tools
Check any renumbered TDS/TCS form number instantly with our interactive TDS & TCS Form Converter. To look up Section 1961 to 2025 Act conversions, visit our Income Tax Section Converter, and verify statutory rates with our TDS Rate Finder.