Form 26Q is Now Form 140: TDS Returns for Tax Year 2026-27
From April 1, 2026, the Income Tax Act, 2025 renumbered every TDS and TCS return form. Form 26Q is now Form 140, Form 24Q is Form 138, and Form 27EQ is Form 143. Filing old form numbers on TRACES results in rejection and late fees of ₹200 per day. Here's the complete mapping and what you need to do before the Q2 deadline of October 31, 2026.
CA Harun Raaj
Chartered Accountant · Harun Raaj & Associates
Legal basis: Income Tax Act, 2025 (in force April 1, 2026); Income-tax Rules, 2026 (Rules 215 and 219) — Effective: April 1, 2026. Source: https://taxguru.in/income-tax/q1-tax-year-2026-27-tds-tcs-return-filing-forms-due-dates.html. Last reviewed by CA Harun Raaj: January 2025.
If your accountant tells you they "filed Form 26Q" for Q1 of 2026-27, something needs immediate attention. From April 1, 2026, the Income Tax Act, 2025 replaced the Income Tax Act, 1961 — and with it, every TDS and TCS return form, certificate, and challan was renumbered. The quarterly TDS return that businesses have filed for decades — Form 26Q — is now Form 140.
This is not cosmetic. Uploading old Form 26Q on TRACES for Tax Year 2026-27 results in a validation rejection. The late-filing fee of ₹200 per day accrues from the day after the due date (August 1, 2026 for Q1) until a valid Form 140 is successfully uploaded.
What Changed: The Complete TDS and TCS Form Mapping
Under the Income-tax Rules, 2026 (which replaced the Income-tax Rules, 1962, effective April 1, 2026), every TDS and TCS form has been renumbered:
Key point: TDS rates, deduction thresholds, and deposit timelines remain unchanged — only form numbers have been renumbered under the Income Tax Act, 2025.
What has NOT changed: TDS rates, deduction thresholds, deposit timelines, and the categories of persons required to deduct TDS. The Income Tax Act, 2025 restructured the law; it did not change tax rates or the economic obligation to deduct.
Who Is Affected
Nearly every business entity in India must adapt to this change:
- Employers deducting TDS on salary must file Q1–Q4 returns in Form 138 (previously Form 24Q)
- Companies, firms, and proprietorships deducting TDS on contractor fees, professional fees, interest, rent, or commission must file Form 140 (previously Form 26Q)
- Businesses collecting TCS (scrap dealers, e-commerce operators, etc.) must file Form 143 (previously Form 27EQ)
- Buyers of immovable property above ₹50 lakh, or individuals and HUF deducting TDS on rent above ₹50,000 per month must use Form 141 (unified, replacing separate forms)
- Businesses making payments to non-residents must report in Form 144 (previously Form 27Q)
Critical Q2 Deadlines: What You Must Know
Tax Year 2026-27, Quarter 2 covers July, August, and September 2026. These deadlines are non-negotiable:
Q1 Certificate Status: Check This Immediately
If you filed Form 140 by July 31, 2026, TDS certificates for Q1 non-salary deductees (Form 131, replacing Form 16A) were due within 15 days of return filing. August 15 is Independence Day; the effective deadline was Monday, August 18, 2026. Log into TRACES now and verify whether Q1 certificates have been generated and dispatched to your vendors and contractors. If they have not been issued, contact your accountant immediately — vendors cannot claim TDS credit without the certificate.
Illustrative Example: What Happens When You File Late
Smt. Ranjana runs a Hyderabad-based private limited company with ₹5 crore annual turnover. In Q1 TY 2026-27 (April–June 2026), her company deducted ₹3.1 lakh in TDS across contractors and consultants. The accountant's TDS software still showed the old Form 26Q template and filed using that form on July 28.
TRACES issued a validation rejection. The accountant corrected the filing and uploaded Form 140 on August 6, 2026 — six days late. Late fee: ₹200 × 6 days = ₹1,200 under the Income Tax Act, 2025. Additionally, the Form 131 certificates (due within 15 days of the corrected filing) could not be issued until the valid return was accepted. Vendors had to wait for their TDS certificates, and two contacted Ranjana's company to query the delay.
This is an illustrative example for educational purposes only.
What You Should Do Right Now
- Confirm your TDS software is updated for Form 140 (non-salary), Form 138 (salary), Form 143 (TCS), and Form 141 (property/rent/VDA). Contact your software vendor if updates are pending.
- Check Q1 Form 131 status on TRACES — were Q1 TDS certificates generated and issued to all non-salary deductees? If not, escalate immediately.
- Calendar Q2 deadlines — October 15 (Form 143 TCS) and October 31 (Forms 138 / 140 / 144 TDS).
- Property purchases from April 1, 2026 — ensure you are using Form 141 (not the old 26QB / 26QC / 26QD / 26QE) for TDS on immovable property above ₹50 lakh.
- Reconcile monthly TDS deposits — ensure July, August, and September 2026 collections are deposited by August 7, September 7, and October 7 respectively under the new rules.
If you are uncertain whether your Q1 filings were made in the correct new form or whether certificates were issued, reach out now. The Q2 deadline of October 31, 2026 is less than two months away.
I'm CA Harun Raaj, Visakhapatnam. If your business is affected by these form changes or you need help reconciling Q1 filings and Q2 deadlines, get in touch.
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See Also
Frequently Asked Questions
My TDS software still shows Form 24Q and Form 26Q. Can I use them for Q2 2026-27?+
No. For Tax Year 2026-27 (April 1, 2026 onwards), old form numbers will be rejected on TRACES. Contact your software vendor — most major TDS software providers should have updates available. Do not file until the software is updated to reflect the new forms (138, 140, 143, 144).
Can I still use Form 26Q for transactions that happened before April 1, 2026?+
Yes. For returns relating to FY 2025-26 (transactions before March 31, 2026), old forms remain applicable. The new forms (138, 140, 143, 144) apply only to Tax Year 2026-27 transactions — April 1, 2026 onwards.
Did TDS rates change under the Income Tax Act, 2025?+
No. The Income Tax Act, 2025 is a structural reorganisation, not a rate change. TDS rates remain unchanged. Only the form numbers and underlying statutory structure have been renumbered.
What is the late fee for filing Form 140 after July 31, 2026?+
The late-filing fee is ₹200 per day from the day after the due date (August 1, 2026) until a valid Form 140 is successfully uploaded to TRACES. If you file six days late, the fee is ₹1,200.
When must I issue Form 131 (TDS certificate) to my vendors after filing Form 140?+
Form 131 must be issued within 15 days of filing Form 140. For example, if you file Form 140 by July 31, 2026, Form 131 certificates are due by August 15 (adjusted to August 18 if the deadline falls on a public holiday). Failure to issue the certificate prevents vendors from claiming TDS credit.
I deduct TDS on rent above ₹50,000 per month. Which new form do I use?+
You must use Form 141 (unified form replacing the old 26QB, 26QC, 26QD, and 26QE) for all property-related TDS deductions, including rent above ₹50,000 per month, from Tax Year 2026-27 onwards.
What happens if TRACES rejects my Form 140 filing?+
TRACES will issue a validation rejection if you file using the old Form 26Q or if there are data errors. You must correct the filing and re-upload the valid Form 140. Late fees accrue from the day after the original due date until the corrected return is accepted.
Is the Q2 TDS return filing deadline October 31, 2026 the same for all businesses?+
Yes. The Q2 TDS return filing deadline of October 31, 2026 applies to all businesses filing Forms 138 (salary), 140 (non-salary domestic), or 144 (non-resident). TCS returns (Form 143) are due by October 15, 2026.
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