The TDS return for the July–September 2026 quarter is due on 31 October 2026. This is the first full year under the Income-tax Act, 2025, so the familiar forms have new names. The Q1 return was filed on the new forms in July. If that went through your software without much thought, Q2 is a good time to check the details before the return is generated.
The new form numbers
| What it covers | Old form | New form |
|---|---|---|
| TDS on salary (section 392) | 24Q | Form 138 |
| TDS on other payments to residents (section 393) | 26Q | Form 140 |
| TDS on payments to non-residents | 27Q | Form 144 |
| TCS statement (section 394) | 27EQ | Form 143 |
| Property, rent and similar one-time deductions | 26QB / 26QC / 26QD / 26QE | Form 141 |
| Salary TDS certificate | Form 16 | Form 130 |
| Non-salary TDS certificate | Form 16A | Form 131 |
| Employee investment declaration | Form 12BB | Form 124 |
| No-deduction declaration | Form 15G / 15H | Form 121 |
Which forms you use depends on when the deduction was triggered, not when you file. TDS is linked to the earlier of credit or payment. If that happened on or before 31 March 2026, the old Act and the old forms still apply, even if you pay or correct it later. Corrections to FY 2025-26 returns therefore stay on 24Q and 26Q.
Due dates for FY 2026-27
| Quarter | Return due |
|---|---|
| Q1 (April–June 2026) | 31 July 2026 |
| Q2 (July–September 2026) | 31 October 2026 |
| Q3 (October–December 2026) | 31 January 2027 |
| Q4 (January–March 2027) | 31 May 2027 |
- Deposit: by the 7th of the following month. TDS deducted in March is due by 30 April.
- Form 131 (non-salary certificate): issue it within 15 days of the quarterly return due date. Your vendors will ask for it when they reconcile their own Form 26AS.
- Form 130 (salary certificate): by 15 June after the year ends.
What a late or wrong return costs
- Late fee of ₹200 a day until the return is filed. It is capped at the TDS amount for that quarter, so a ₹40,000 quarter can attract up to ₹40,000 in fees.
- Interest at 1% a month if tax was not deducted on time, and 1.5% a month if it was deducted but not deposited.
- Penalty of ₹10,000 to ₹1 lakh can apply for not filing the statement or for filing incorrect details.
- Your deductees can't see the credit in their tax statement. Vendors notice this quickly, and employees notice it at ITR time.
Check these before you file Q2
- Utility and software. The form layouts and section codes have changed. Make sure your TDS software or the return preparation utility is on the version for the new forms, and that section codes map correctly. A payment tagged under an old code is a common reason for a defect notice.
- Challan match. Every deduction should tie to a challan with the right period and section, and challan totals should match the return.
- PAN check. Validate PANs before filing. Missing or invalid PANs lead to short-deduction demands at higher rates.
- Lower-deduction certificates and Form 121. Keep them on file and quote them correctly, or the processing will treat it as short deduction.
- Salary estimates. For Form 138, confirm which regime each employee has chosen and update their Form 124 declarations. Underestimating salary TDS in Q2 piles the shortfall into the last months of the year.
How Vitt-Marg helps
We prepare and file TDS and TCS returns every quarter, reconcile challans before filing, issue Form 130 and 131 certificates, and handle defaults and short-deduction notices on TRACES. If Q1 was filed with errors, we can file a correction statement alongside Q2. Payroll clients get Form 138 handled as part of the monthly salary cycle.
General information, current as of October 2026, not advice for a specific case. GST and income-tax rules change often — check with us before acting on it.