TDS Return Form 26Q: Due Dates, Filing Process and Penalty

Introduction

TDS Return Form 26Q is a quarterly statement used to report tax deducted from non-salary payments made to resident persons. When a person makes certain specified payments, Tax Deducted at Source (TDS) must be deducted before the payment is made or credited to the recipient.

Under the Income-tax Act, 1961, these transactions were reported through Form 26Q, which included details of payments, TDS deducted, tax deposited, deductees and challans. From 1 April 2026, Form 26Q has been renumbered as Form 140 under the Income Tax Act, 2025. Therefore, statements relating to Tax Year 2026-27 and later must be filed using Form 140.

In this blog, we explain the meaning, applicability, due dates, filing process, interest, late filing fees and penalties related to Form 26Q and Form 140.

What Is TDS Return Form 26Q?

TDS Return Form 26Q is a quarterly statement used for reporting TDS deducted from non-salary payments made to resident persons.

It is commonly called a TDS return, although it is legally a quarterly TDS statement. It reports information such as:

• Nature and amount of payment
• Applicable TDS provision
• Amount of tax deducted
• Date of deduction
• Date of depositing TDS
• Deductee’s PAN and other details
• TDS challan information
• Details of lower or nil deduction, where applicable

Form 26Q was used for payments such as contractor charges, professional fees, commission, brokerage, rent, interest, and other specified payments made to residents.

It should not be confused with the return used for salary payments or payments made to non-residents.

The Income Tax Act, 2025 came into effect on 1 April 2026, under which Form 26Q was renumbered as Form 140. Form 140 is used for reporting TDS deducted from non-salary payments made to resident persons. TDS Return Form 26Q applies to periods governed by the Income-tax Act, 1961, while Form 140 applies from Tax Year 2026-27 onward. Taxpayers must select the correct form based on the relevant reporting period.

Form 140 is the quarterly TDS statement prescribed under Section 397(3)(b) of the Income-tax Act, 2025, read with Rule 219 of the Income-tax Rules, 2026.

Businesses should also understand the other new TDS and TCS forms under the Income-tax Act, 2025 that apply from 1 April 2026.

Who Is Required to File Form 26Q?

TDS Return Form 26Q or its replacement, Form 140, must be filed by a person who:

• Makes a specified non-salary payment to a resident
• Is required to deduct TDS from that payment
• Has deducted TDS during the relevant quarter
• Holds a valid Tax Deduction and Collection Account Number, or TAN

The requirement may apply to:

• Companies
• Limited Liability Partnerships
• Partnership firms
• Government offices
• Trusts and associations
• Co-operative societies
• Individuals and HUFs covered by the applicable TDS provisions
• Other persons responsible for deducting tax

A valid TAN must be registered on the Income Tax e-Filing portal.

A deductor who does not hold a valid TAN can apply for TAN online before starting the quarterly TDS return filing process.

Payments Not Reported in Form 26Q

The following should not ordinarily be included in TDS Return Form 26Q:

• Salary payments reported through Form 24Q
• Payments to non-residents reported through Form 27Q
• Purchase of immovable property reported through Form 26QB
• Rent covered by Form 26QC
• Certain payments by individuals or HUFs reported through Form 26QD
• Specified virtual digital asset transactions reported through Form 26QE

Under the new Act, the specified challan-cum-statements have been reorganised under Form 141 with separate schedules.

TDS Return Form 26Q Due Dates

Form 26Q and Form 140 must be filed quarterly.

These due dates apply unless the Central Board of Direct Taxes issues a specific extension.

For example, the statement for the quarter ending 30 June is ordinarily due on 31 July of the same year.

Deductors can refer to the complete guide on TDS return due dates and late filing fees to plan their quarterly compliance.

How to Prepare and File Form 26Q/Form 140

TDS Return Form 26Q is not generally downloaded as a simple blank PDF for manual filing. The deductor must use the latest Return Preparation Utility (RPU) and File Validation Utility (FVU).

For Tax Year 2026-27 onward, the statement is prepared and uploaded as Form 140.

1. Download the Latest Return Preparation Utility

Visit the Protean e-TDS or e-TCS section.

Go to:

Downloads – e-TDS/e-TCS – Quarterly Return – Regular or Correction

Download the latest version of the Return Preparation Utility applicable to the statement.

2. Enter the TDS Details

Enter the following information in the utility:

• Deductor details
• Quarter and applicable year
• Challan details
• Deductee records
• Payment amounts
• TDS rates and amounts
• Reasons for lower or non-deduction, where applicable

3. Validate the Statement

Validate the completed statement through the latest File Validation Utility.

After successful validation, the utility generates an FVU file, which must be placed in a ZIP folder for online submission.

4. Log In Using TAN

Log in to the Income Tax e-Filing portal using the deductor’s TAN.

Go to:

e-File – Income Tax Forms – File Income Tax Forms

5. Select the Correct Form

For Tax Year 2026-27 onward:

• Open the “Forms as per Income Tax Act, 2025” section.
• Select “Deduction and Collection at Source.”
• Choose Form 140.
• Select the relevant tax year.
• Select the quarter.

Choose regular or correction as the upload type.

6. Upload and Verify

Upload the ZIP file containing the validated FVU file.

Proceed with verification using the permitted verification method. After submission, the form will be processed, and its status will appear as accepted or rejected.

A statement may be rejected due to an incorrect tax year, mismatched TAN, incorrect FVU version, incorrect upload type or duplicate filing for the same quarter.

Interest, Late Filing Fee and Penalty for Form 26Q/Form 140

Different consequences may arise for:

• Failure to deduct TDS
• Delay in deducting TDS
• Delay in depositing the deducted tax
• Delay in filing the quarterly TDS statement
• Furnishing incorrect information in the statement
• Interest for Failure to Deduct TDS

For statements governed by the Income-tax Act, 1961, interest is charged under Section 201(1A). For statements governed by the Income-tax Act, 2025, the corresponding provision is Section 398(3).

Where TDS was required to be deducted but was not deducted on time, interest may be charged at 1% per month or part of a month.

The interest is calculated from the date on which the tax was deductible until the date on which it is actually deducted.

Interest for Delay in Depositing TDS

Where TDS was deducted but not deposited within the prescribed period, interest may be charged at 1.5% per month or part of a month.

Interest is calculated from the date of deduction until the date on which the tax is paid to the Central Government.

These interest provisions are covered under Section 201(1A) of the Income-tax Act, 1961 and Section 398(3) of the Income-tax Act, 2025.

Late Filing Fee Under Section 234E and Section 427

For statements governed by the Income-tax Act, 1961, a late filing fee may be charged under Section 234E.

For statements governed by the Income-tax Act, 2025, the corresponding late filing fee is covered under Section 427.

A fee of ₹200 per day may be charged for every day during which the failure to file the quarterly TDS statement continues. However, the total late filing fee cannot exceed the amount of tax deductible for the relevant statement.

Penalty Under Section 271H and Section 461

For statements governed by the Income-tax Act, 1961, a penalty may be imposed under Section 271H. For statements governed by the Income-tax Act, 2025, the corresponding penalty provision is Section 461.

The Assessing Officer may impose a penalty ranging from:

• Minimum penalty: ₹10,000
• Maximum penalty: ₹1,00,000

The penalty may apply where the deductor fails to file the quarterly TDS statement within the prescribed time or furnishes incorrect information in the statement.

This penalty is separate from the applicable late filing fee.

Relief from the penalty for delayed filing may be available where the deductor:

• Deposits the TDS with the Central Government
• Pays the applicable interest and late filing fee
• Files the quarterly TDS statement within one month from the prescribed due date

This relief applies to delayed filing or non-filing and does not apply where incorrect information has been furnished in the TDS statement.

Ebizfiling Support for TDS Return Form 26Q

Ebizfiling can assist businesses, companies, LLPs, firms and other deductors with the preparation and filing of quarterly TDS returns. Our team helps review deductor details, deductee records, challan information, TDS rates and payment data before the return is submitted.

We can help with:

• TDS Return Form 26Q and Form 140 filing
• Quarterly TDS return preparation
• TAN and deductee detail verification
• Challan and deduction entry matching

Accurate and timely filing helps reduce the risk of return rejection, TDS credit mismatches, interest and penalties. Contact Ebizfiling for assistance with your TDS return filing requirements.

Final Thoughts

TDS Return Form 26Q is used to report TDS deducted from non-salary payments made to resident persons. From 1 April 2026, Form 26Q has been renumbered as Form 140 under the Income Tax Act, 2025. Deductors must select the correct form based on the relevant reporting period and file it within the prescribed quarterly due date.

Before filing, deductors should carefully verify PAN details, challan information, payment amounts, TDS rates and deduction records. Accurate and timely filing helps avoid return rejection, interest, late filing fees, penalties and TDS credit mismatches. Businesses that need assistance with TDS Return Form 26Q or Form 140 filing can contact Ebizfiling for professional support.

Frequently Asked Questions