TaxSavvy

Compliance Pack

Quarterly non-salary TDS return, Form 140 (earlier 26Q)

  • When you deduct TDS on vendor, rent, fee or interest payments, you must report it every quarter so the payee gets credit.
  • Deadline: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May of the next year
  • Done in 2 to 3 working days after ledger and challan data
  • Prepared by your Savvy, checked by a CA
  1. TAN and TRACES login
  2. Which payments had TDS this quarter
  3. Reconcile ledgers
  4. ARN acknowledgement
The law and the stepsPay and start · ₹1,499Quarterly, + 18% GST

Answer in brief

When you deduct TDS on vendor, rent, fee or interest payments, you must report it every quarter so the payee gets credit. We match your ledgers with challans and PANs, file Form 140 and clear any defaults TRACES raises.

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From the official sources

What the law says, and what trips people up

From the official portal's manuals and FAQs, with the source for each point.

The law

  • Income-tax Act 2025, Sec 397(3)(b) (old Sec 200(3))

    Deliver a periodic statement after paying the tax deductedSource

  • Income-tax Rules 2026, Rule 219(1) and (4) (old Rule 31A)

    Form 140 covers Sec 392(7), Sec 393(1) other than Sl. 8(iii), and Sec 393(3) for deductees not in Form 144; quarterly due dates 31 July, 31 October, 31 January, 31 MaySource

  • Income-tax Act 2025, Sec 397(2)

    If the payee does not give PAN, tax is deducted at the highest of the Act rate, rate in force, or 20% (5% for certain entries)Source

  • Income-tax Act 2025, Sec 427 (old Sec 234E)

    ₹200 a day while late, capped at tax deductibleSource

  • Income-tax Act 2025, Sec 461 (old Sec 271H)

    Penalty ₹10,000 to ₹1,00,000 for late, non-filing or incorrect statementSource

  • Income-tax Act 2025, Sec 398 (old Sec 201)

    Deductor who fails to deduct or pay is an assessee in default; interest 1% and 1.5% a monthSource

  • Government fee

    No filing fee. Must be filed electronically (https://www.incometaxindia.gov.in/documents/d/guest/form-140-faqs).

  • Late fee or penalty

    ₹200 a day under Sec 427, not more than the tax deductible (https://www.incometaxindia.gov.in/w/section-427-5). Penalty ₹10,000 to ₹1,00,000 under Sec 461 (https://www.incometaxindia.gov.in/w/section-461-5).

On the portal

  1. Login to TRACES as deductor
  2. Choose statement filing, Form 140, tax year and quarter
  3. Import challans or enter them
  4. Add deductees or use Bulk Upload; pick section, amount, date, rate and any certificate number
  5. Map rows to challans and validate
  6. E-verify with Aadhaar OTP or DSC and file; save ARN

What trips people up

  • Challan short or overbooked across rows

    Pay the shortfall in a fresh challan or move rows with Resolution of Overbooked ChallanSource

  • Wrong payee PAN reported

    Raise online PAN correction or correct through the conso fileSource

  • Challan paid under wrong tax year or minor head

    Correct through bank within its window or challan correction on TRACESSource

  • Overriding utility warnings and not checking token against the report

    Review validation report and statement status after filingSource

  • Lower rate applied without a valid certificate

    Only apply lower rate with a Form 128 certificate for that payer and amountSource

People ask

Who has to file Form 140?

Any person deducting tax on non-salary payments to residents, including companies, firms, government and individuals.Source

Can Form 140 be edited after filing?

No. File a correction after CPC-TDS has processed the original.Source

When does the Q2 correction window close?

For Q2 of 2026-27, until 31 March 2029.Source

What rate if the vendor has no PAN?

The higher of the Act rate, rate in force or 20% (5% for some entries).Source

How do I know it was accepted?

You get an ARN on successful submission on TRACES.Source

IDFD

How we solve it: 4 steps

Every line tracked live.

Step 1 of 4 · What we need from you

Tap each one you already have

Ready0 / 8
  • TAN and TRACES login
  • Vendor ledger with TDS entries
  • Payee PANs
  • Nature of payment and section
  • Challan details for quarter
  • Lower deduction certificates of payeesOptional
  • Form 121 declarations receivedOptional
  • Responsible person's DSC or Aadhaar

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Quarterly. Delivered in 2 to 3 working days after ledger and challan data. Due: Q1 by 31 July, Q2 by 31 October, Q3 by 31 January, Q4 by 31 May of the next year

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