Form 26Q (Now Form 140): Complete Guide to TDS Return Filing for Non-Salary Payments in India

If your business makes payments to consultants, contractors, landlords, vendors, or other non-salary recipients, TDS compliance does not end with deducting and depositing tax. The deduction also has to be reported correctly so that the Income Tax Department can match the payment, challan, PAN, and recipient details.

This is where many deductors get confused. Which payments need to be reported? Which quarter should they fall under? Is this different from salary TDS? What happens if the wrong PAN, challan number, or TDS section is entered?

This guide explains what Form 26Q is, why it is filed, who must file it, the payments it covers, the details required, filing due dates, penalties, corrections, and the transition from Form 26Q to Form 140 from Tax Year 2026–27.

Want to simplify Form 26Q filing for contractual payments?

Learn how to file TDS for contractual payments using Form 26Q in Keka

What is Form 26Q in TDS?

Form 26Q is a quarterly return used to report TDS deducted on specified non-salary payments made to resident recipients. These may include professional fees, contractor charges, rent, interest, and commission.

It records the recipient’s details, the amount paid or credited, and the TDS deducted and deposited. It does not involve paying TDS again; it reports tax already deposited with the government.

From Tax Year 2026–27, Form 26Q has been replaced by Form 140 under the Income-tax Act, 2025. Its core purpose remains unchanged.

Who Must File Form 26Q ?

Form 26Q must be filed by any person or entity required to deduct TDS on specified non-salary payments made to a resident. This may include companies, firms, trusts, government offices, and eligible individuals or Hindu Undivided Families (HUFs).

For older periods, individuals and HUFs may be covered where their accounts were subject to audit under Section 44AB, depending on the payment provision. Section 63 is the corresponding tax-audit provision under the Income-tax Act, 2025.

However, simply paying a consultant, contractor, or vendor does not automatically make Form 26Q filing mandatory. The requirement depends on the payer, recipient, payment type, and applicable threshold.

What are the TDS Sections Covered in Form 26Q ?

Form 26Q reports TDS deducted on specified non-salary payments made to residents. The applicable rate, threshold, and reporting code depend on the nature of the payment. For example, professional fees paid to a consultant may follow different rules from payments made to a contractor.

Key TDS Sections: Quick Reference Table

The table below summarises the main payment categories reported in Form 26Q and their corresponding references under Form 140 from 1 April 2026.

Note: The standard rates generally assume that the deductee has provided a valid PAN. A higher rate may apply for a missing or invalid PAN, while a valid certificate or declaration may permit lower or nil deduction.

Difference Between Form 26Q, 24Q, 27Q and 27EQ

The correct return depends on four things:

• the type of payment,

• the recipient’s residential status,

• whether tax was deducted or collected, and

• whether it is a regular quarterly return or a specific transaction-based statement.

The table below reflects the official form mapping under the Income-tax Rules, 2026.

The official 2026 form mapping confirms that Form 26Q became Form 140, while Forms 26QB, 26QC, 26QD and 26QE were consolidated into Form 141.

Remember: Form 26Q is a regular TAN-based quarterly return. Forms 26QB, 26QC, 26QD and 26QE were PAN-based challan-cum-statements for specific transactions. In TDS, the payer deducts tax from a payment. In TCS, the seller or collector collects tax from the buyer.

Read More: For salary-related tax records, you can also read how to check or download the income tax computation of an employee.

Due Dates for Filing Form 26Q

Form 26Q/Form 140 is filed quarterly, while the TDS reported in it is generally deposited monthly. These are separate obligations. Depositing TDS does not replace the quarterly return.

Quarterly Form 26Q/Form 140 Due Dates

These due dates apply to Form 140 from Tax Year 2026–27. Q4 of FY 2025–26 was filed through Form 26Q by 31 May 2026, while Q1 of Tax Year 2026–27 is filed through Form 140 by 31 July 2026.

Monthly TDS Deposit Due Dates

For non-government deductors, the regular deposit deadlines are:

Government deductors must deposit TDS on the same day when no challan is used, or by the 7th of the following month when payment is made through a challan.

Example: If TDS is deducted from a consultant’s payment on 18 August 2026, it must generally be deposited by 7 September. The transaction is then reported in the Q2 Form 140 due by 31 October 2026.

Note: Check the official Income Tax calendar and CBDT notifications for any deadline extension.

What are the Details Required to File Form 26Q or Form 140?

To file Form 26Q or Form 140, you need details about the deductor, the TDS deposited, and every resident deductee whose payment is being reported.

For a correction statement, you may also need the receipt or acknowledgement number of the earlier return.

A valid TAN is generally required for regular Form 26Q/Form 140 filing. Certain PAN-based transactions involving property, rent, professional services, or virtual digital assets follow the separate Form 141 process. Read how to get TAN for your business if needed.

How to File Form 26Q or Form 140: Step-by-Step Process

The filing process follows six steps:

Step 1: Choose the correct form and utility

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Step 2: Gather and reconcile the records

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Step 3: Enter the details in the RPU

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Step 4: Validate the statement through the FVU

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Step 5: Upload the validated file

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Step 6: Save the acknowledgement and track its status

Step 1: Download the Correct RPU and FVU

Download the Return Preparation Utility, or RPU, and File Validation Utility, or FVU, from the official Protean TIN website. Use the version that matches the return period:

The RPU prepares the statement, while the FVU checks it for format-level errors. Download the complete latest folders, as replacing only individual files may cause rejection. These versions are current as of July 2026.

Step 2: Collect and Reconcile the TDS Records

Keep the deductor, challan, payment, and deductee details listed in the pre-filing checklist ready. Confirm that every deductee entry is mapped to the correct challan and that the allocated TDS does not exceed the challan amount.

Step 3: Enter the Details in the RPU

Open the applicable RPU and select Form 26Q or Form 140. Choose a regular statement for a fresh filing.

Enter the deductor details, challan records, and a separate row for every reportable deductee payment. For transactions from 1 April 2026, use the applicable Section 393 reporting reference.

Step 4: Validate the Statement Through the FVU

Create the return file in the RPU and validate it using the correct FVU. Successful validation generates the .fvu file required for submission.

Common errors include:

• Incorrect PAN or challan details

• TDS exceeding the available challan balance

• Mismatched deducted and deposited amounts

• Wrong form, quarter, code, or utility version

Correct any errors in the RPU and validate the file again.

Step 5: Upload the Validated File

Form 140 must be submitted electronically through the prescribed filing system. The official FAQ states that it is filed on the TRACES portal. For older Form 26Q statements, the available filing channel may depend on the reporting period and applicable procedure.

Step 6: Save the ARN and Check the Status

After a successful Form 140 submission, you will receive an Acknowledgment Receipt Number (ARN). Save it as proof of filing.

CPC-TDS will process the statement. If it identifies an error or default, pay any applicable amount and file a correction statement. Form 140 cannot be edited directly after submission; corrections can be made after the original statement has been processed.

Late Filing Fees, Interest and Penalties for Form 26Q

Late filing, late deduction, incorrect reporting, and failure to deposit TDS can attract different consequences. More than one consequence may apply to the same compliance failure.

Make Form 26Q Filing a Smoother Quarterly Process

Form 26Q filing becomes easier when deductors treat it as a regular compliance workflow, not a last-minute quarterly task. The next step is to keep payment records, PAN details, challans, TDS rates, and deductee mappings updated throughout the quarter. This reduces validation errors, correction returns, penalties, and tax-credit issues for vendors or contractors.

For businesses managing contractual payments, Keka can help streamline this process by tracking deductions, adding outside payments, mapping challans, and generating Form 26Q files for filing.

FAQs

Q1: How do I download Form 26Q?

Form 26Q is not usually downloaded as a blank form for filing. Prepare it using the latest Return Preparation Utility (RPU) available on the official Protean TIN website. For Tax Year 2026–27 onward, use Form 140 instead of Form 26Q. For corrections, download the consolidated statement from TRACES.

Q2: Is it mandatory to file a nil TDS return in Form 26Q?

No. A nil Form 26Q is generally not required if no TDS was deducted and there were no reportable transactions during the quarter. However, under Form 140, certain payments made without TDS, such as those covered by a valid Form 121 declaration must still be reported.

Q3: Can I correct Form 26Q after it has been filed?

Yes. You can file a correction statement after the original Form 26Q has been processed. For Form 140 from Tax Year 2026–27, corrections must be filed within two years from the end of the relevant tax year. Review the processed statement or Justification Report first to identify the exact errors.

Q4: What Correction Types Apply to Form 26Q?

Form 26Q corrections include C1 for deductor details, C2 for challan details, C3 for adding, deleting, or updating deductee records, C5 for correcting deductee PAN, and C9 for adding a new challan with deductee entries. C4 applies only to salary records in Form 24Q, not Form 26Q.

Q5: What are the steps to file a correction return via RPU?

Request a fresh Consolidated File from TRACES for the relevant financial year, quarter, and form type. Import it into the latest correction RPU, make the required changes, and generate the corrected file. Validate it using the applicable FVU, submit the resulting .fvu file through the available filing channel, and save the acknowledgement.