The TDS return for the third quarter of FY 2026-27, covering October, November and December 2026, is due on 31 January 2027. This is the third quarter filed on the new forms under the Income-tax Act, 2025. Q3 is also the quarter in which salary TDS has to be corrected, because only three months remain after it to recover any shortfall.
Q3 dates at a glance
| What | Due date |
|---|---|
| TDS deducted in October 2026: deposit | 7 November 2026 |
| TDS deducted in November 2026: deposit | 7 December 2026 |
| TDS deducted in December 2026: deposit | 7 January 2027 |
| Q3 TDS return (Forms 138, 140, 144) and TCS return (Form 143) | 31 January 2027 |
| Form 131 (non-salary TDS certificate) for Q3 | 15 February 2027 |
Which form to file
| What it covers | Old form | New form |
|---|---|---|
| TDS on salary | 24Q | Form 138 |
| TDS on other payments to residents (contractors, professionals, rent, commission) | 26Q | Form 140 |
| TDS on payments to non-residents | 27Q | Form 144 |
| TCS statement | 27EQ | Form 143 |
Corrections to returns for FY 2025-26 or earlier still go on the old forms, because the old Act governs those years.
What to check in Q3 payroll
- Collect investment proofs now. Employees who chose the old regime declared investments in Form 124 at the start of the year. Ask for proofs in December and January, so the salary TDS for the last quarter is based on real figures.
- Re-estimate the year's salary. Add bonuses, arrears and increments paid so far. If TDS for the first nine months is short, spread the balance over January to March. Leaving it all for March gives the employee a very small salary that month.
- Confirm the regime for each employee. New-regime employees cannot claim HRA or 80C, so any declaration made on that basis has to be ignored.
What a late or wrong return costs
- Late fee of ₹200 a day until the return is filed, capped at the TDS amount for the quarter.
- 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 wrong details.
- Your vendors and employees lose their credit in their tax statements until the return is filed and processed.
Before you file
- Match every deduction to a challan with the right period and section code.
- Validate PANs. Missing or inoperative PANs lead to demands at higher rates.
- Quote lower-deduction certificates correctly, or the processing treats them as short deduction.
- Make sure your software is on the latest utility for Forms 138 and 140, since section codes changed under the new Act.
Frequently asked questions
What is the TDS return due date for Q3 FY 2026-27?
31 January 2027 for the October to December 2026 quarter, for salary TDS in Form 138 and other TDS in Form 140.
When is TDS for December 2026 to be deposited?
TDS deducted in December 2026 has to be deposited by 7 January 2027.
When should Form 131 be issued for Q3?
Form 131, which replaced Form 16A, should be issued within 15 days of the return due date, that is by 15 February 2027.
What is the late fee for a late TDS return?
A late fee of ₹200 a day applies until the return is filed, capped at the TDS amount for that quarter. Interest and penalty can apply separately.
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 clear defaults and short-deduction notices on TRACES. Payroll clients get the Q3 salary true-up done as part of the monthly cycle.
General information, current as of 11 November 2026, not advice for a specific case. Due dates and fees change with MCA and CBDT notifications. Check with us before acting on it.