Form 138 vs 140 (Earlier 24Q vs 26Q): Which TDS Return Applies to Which Payment
From 2026-27, Form 138 (earlier Form 24Q) reports TDS on salary and Form 140 (earlier Form 26Q) reports TDS on other payments to residents, such as professional fees and contractors. Payments to non-residents go on Form 144. Returns are due on 31 July, 31 October, 31 January and 31 May.
Deducting tax at source is half the job. The deductor also has to report every deduction in a quarterly statement. Two forms cause most of the confusion. Since 1 April 2026 they have new numbers: Form 24Q is now Form 138, and Form 26Q is now Form 140.
The forms side by side
| Old name | New name | Reports tax deducted on |
|---|---|---|
| Form 24Q | Form 138 | Salary |
| Form 26Q | Form 140 | Payments to residents other than salary, such as professional fees, contractors, rent and commission |
| Form 27Q | Form 144 | Payments to non-residents |
The old forms apply to anything up to 31 March 2026, and the new forms apply from the first quarter of 2026-27.
Form 138: TDS on salary
The return has the deduction and deposit details for each quarter. The last quarter also carries an annexure with the full-year salary details of every employee. That annexure feeds the employee's Form 130 (earlier Form 16) and tax statement.
Form 140: payments to residents
This form reports tax on payments such as professional fees and contractor payments. Under the Income-tax Act, 2025, these rules sit in Section 393, and the earlier section numbers such as 194J and 194C appear as entries in a table.
Due dates
| Quarter | Return due |
|---|---|
| April to June | 31 July |
| July to September | 31 October |
| October to December | 31 January |
| January to March | 31 May |
Tax itself is deposited separately, by the 7th of the following month.
Who prepares them
Most employers export a file from payroll or accounting software, validate it with the government's utility, and upload it through TRACES or an authorised provider. The FVU codes were reassigned for 2026-27, so make sure your software is on the current version before you file.
Common mistakes
- ✓A wrong PAN for an employee or vendor, which breaks their tax credit
- ✓Challan details that do not match the amount deposited
- ✓Late filing, which carries a fee of ₹200 a day
- ✓Mixing salary and non-salary entries in one form
- ✓Using the old form number for a 2026-27 quarter
Tips
- Reconcile your ledger with the challans every month, not every quarter.
- Check every PAN before you file.
- Keep the acknowledgement of each return.
Sources
Written by
HR Manager, Airwix Technologies (Sleet)
Nihit Dobariya is the HR Manager at Airwix Technologies in Ahmedabad, where he runs HR and payroll for the team behind Sleet. He writes about payroll, PF and ESIC, professional tax, the labour codes and everyday HR practice for Indian employers, and checks each rule against the official notification before it is published.
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