Compliance Pack
Quarterly salary TDS return, Form 138 (earlier 24Q)
What this means, checked by a CA
If you deduct TDS from salaries, you must report it every quarter so your employees get credit in their tax records. We reconcile payroll with challans, file Form 138 on TRACES and fix any errors before they turn into notices.
₹1,999
a quarter, + 18% GST
- Delivered in 3 working days after payroll and challan data
- Due: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May of the next year
How we do it: IDFD
Every case runs through the same four steps: Information, Discussion, Forms, Deliverables. You see each one ticked as it happens.
InformationWhat we need from you · 8 items
TAN and TRACES login
Statement is filed under TAN
Monthly salary register for quarter
Amount paid and tax per employee
Employee PAN list
Missing PAN means higher rate
TDS challan details for quarter
Each deduction mapped to a challan
Joining and leaving datesOptional
Annexure detail and Form 130 period
Regime choice and investment proofs
Needed for Q4 salary annexures
Previous employer salary detailsOptional
Q4 annual computation
Responsible person's PAN and DSC or Aadhaar
E-verification of the statement
DiscussionWhat we discuss · 6 items
Which quarter and tax year is this, and is it before or after 1 April 2026?
Form 138 versus old 24Q
Were all deductions paid by the 7th of the next month?
Interest must be paid before filing
Do all employees have a valid, operative PAN?
Higher rate and short deduction default
Is this Q4, and did anyone join, leave or switch regime?
Q4 needs salary annexures
Is the return late?
Sec 427 fee and Sec 461 one-month window
How many employees: small enough for online TRACES entry?
Online form or utility upload
FormsForms we file · 7 items
Reconcile salary register, TDS deducted and challans paid for the quarter
Per employee: tax deducted versus tax deposited; any gap is short payment
Where: Internal. Due: Before filing
Pay any interest for late deduction or deposit
1% a month from due date of deduction to deduction; 1.5% a month from deduction to deposit; part month counts as full
Where: https://www.incometax.gov.in. Due: Before filing
Pay Sec 427 late fee if past due date
₹200 x days late, not more than TDS for the quarter
Where: https://www.incometax.gov.in. Due: Before filing
Prepare Form 138: online on TRACES (import challans, add or bulk upload employees, map to challans) or through the preparation and validation utility for large volumes
Where: https://traces.tdscpc.gov.in. Due: 31 July, 31 October, 31 January, 31 May
Q4 only: add Annexure II and III with full-year salary computation
Where: https://traces.tdscpc.gov.in. Due: 31 May
Validate, e-verify with Aadhaar OTP or DSC, submit and note the ARN
Where: https://traces.tdscpc.gov.in. Due: On filing
Check processing status and intimation; correct defaults if any (TDS-COR-01)
Where: https://traces.tdscpc.gov.in. Due: After processing
DeliverablesWhat you get · 3 items
ARN acknowledgement
When: Same day
Processed statement and intimation
When: After CPC-TDS processing
Employee TDS credit in Form 168 (old Form 26AS)
When: After processing
Questions people ask
Do I attach salary details every quarter?
No. Annexure I goes every quarter; Annexure II and III only with Q4.
Can I edit Form 138 after filing?
No. File a correction statement after it is processed.
How long can I correct it?
Two years from the end of the tax year in which it was due. Q3 of 2026-27 can be corrected until 31 March 2029.
Can the late fee be waived?
No. The ₹200 a day fee must be paid before the statement is delivered.
Can I file directly on TRACES without software?
Yes, from Q2 of tax year 2026-27 small deductors can prepare, validate and file online; the utility route remains for large volumes.
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