TDS Return Due Date 31 Oct 2026 (Q2): Form 138 & 140
- Due date: 31 October 2026 for the July–September 2026 quarter (Tax Year 2026-27).
- New forms: Form 138 (salary, old 24Q), Form 140 (other resident payments, old 26Q), Form 144 (non-residents, old 27Q), Form 143 (TCS, old 27EQ).
- Late fee: ₹200 per day (section 427), capped at the TDS in the statement.
- Form 131 (old Form 16A) to deductees by 15 November 2026.
👀 Eye-opener: the 1-month trap
Many deductors still think “late is fine, just pay ₹200 a day”. Not any more.
- Penalty window shrank: the no-penalty cushion is now one month from the due date (it was one year until March 2025). Miss it and a penalty of ₹10,000 to ₹1,00,000 can apply (section 461).
- Hidden cost: your vendors and staff see no TDS credit in Form 26AS/AIS until you file. Expect calls, held payments and strained relationships.
- Weekend alert: 31 October 2026 is a Saturday. Don't leave it to the last evening.
📅 TDS return due date FY 2026-27 (all quarters)
| Quarter | Statement due | Form 131 due |
|---|---|---|
| Q1 Apr–Jun | 31 July 2026 | 15 August |
| Q2 Jul–Sep | 31 October 2026 | 15 November 2026 |
| Q3 Oct–Dec | 31 January 2027 | 15 February |
| Q4 Jan–Mar | 31 May 2027 | 15 June |
🧾 Form 138 vs Form 140 vs Form 144: which one?
| New form | Old form | Use it for |
|---|---|---|
| Form 138 | 24Q | Salary TDS |
| Form 140 | 26Q | Rent, professional fees, contracts, commission, interest to residents |
| Form 144 | 27Q | Payments to non-residents |
| Form 143 | 27EQ | TCS collected |
🧮 TDS return late fee: worked example
A firm deducted ₹40,000 TDS in Q2 (Form 140).
- Files on 30 Nov 2026 (30 days late): fee = 30 × ₹200 = ₹6,000. Within one month, so no penalty if TDS, fee and interest are paid.
- Files on 31 Jan 2027 (92 days late): fee = 92 × ₹200 = ₹18,400 plus penalty exposure of ₹10,000–₹1,00,000.
- Late deposit too? ₹50,000 deducted on 10 Aug, paid on 20 Oct: interest 1.5% × 3 months = ₹2,250 (section 398).
✅ 6 checks before you file the Q2 TDS return
- Match challans: every TDS deposit for July–September is paid and the challan details are correct.
- Verify PANs of all deductees and check they are operative.
- Pick the right form and section for each payment (salary vs non-salary vs non-resident).
- Pay interest first for any late deduction (1%/month) or late deposit (1.5%/month).
- Cross-check totals with your books and GST purchase data so no vendor is missed.
- File, then download and issue Form 131 to deductees by 15 November 2026.
❓ FAQs on Q2 TDS return 2026
What is the last date to file TDS return for Q2 FY 2026-27?
31 October 2026 for July–September 2026. As of writing, we have not found any notified extension.
Is Form 26Q replaced by Form 140?
Yes, for quarters from April 2026 under the Income-tax Rules, 2026. Form 138 replaces 24Q.
What is the late fee for TDS return under the new Act?
₹200 per day under section 427, capped at the total TDS in that statement, payable before filing.
Can the TDS late filing penalty be avoided?
Yes, if TDS, fee and interest are paid and the statement is filed within one month of the due date (section 461).
When must Form 131 (Form 16A) be issued for Q2?
Within 15 days of the statement due date, i.e. by 15 November 2026.
🤝 Need a second pair of eyes?
If your Q2 TDS data, PAN errors or challan mismatches need checking before filing, talk to a Chartered Accountant.
📚 References: Rule 219 (forms & due dates) · Section 427 · Section 461 · Form 131 FAQs · TRACES
Disclaimer: General information as of 29 October 2026, not professional advice; check the latest notifications for your case.
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