TDS Return Is Changing: Form 26Q Is Now Form 140, and Q2 Is Due 31 October 2026

If you deduct TDS, this quarter looks different. The form has a new name, the Income-tax Act is new, and there is now a way to file without the usual software steps. The deadline has not moved.

The short version

• Form 26Q is now Form 140 for Tax Year 2026-27. Salary TDS moves from 24Q to Form 138 (TaxGuru).
• The Q2 return (July to September 2026) is due 31 October 2026.
• From Q2, Forms 138 and 140 can be prepared and filed online on TRACES, without a separate file and upload (Quicko Q&A, CA Ahuja). The RPU and FVU route still exists in the official manual.
• A filed statement cannot be edited. Fixing it means a correction statement.
• Late fee: ₹200 per day, capped at the quarter's TDS (TRACES guide citing section 427 of the Income-tax Act, 2025).

Old forms vs new forms

Sources: TDSMAN mapping blog (third-party, so confirm with the Income-tax Rules, 2026) and TaxGuru.

Law change behind it: the Income-tax Act, 2025 applies from 1 April 2026. Salary TDS sits under Section 392 and most other deductions under Section 393. Events on or before 31 March 2026 stay under the old Act (TaxGuru).

Due dates to keep

Source: official Form 140 user manual. The September TDS payment was due 7 October 2026 (Quicko Q&A).

Two ways to file Form 140

CA Ahuja notes that large-volume deductors may continue with the utility route. I did not find an official statement on which route the department prefers.

Filing Form 140 online on TRACES, step by step

From the Quicko guide for Q2:

1. Log in to TRACES as a deductor with your TAN. Go to e-file & View, then File TDS/TCS Forms & Statements.
2. On the Form 140 card, click File Now. Choose Tax Year 2026-27, Q2, Regular, and online preparation.
3. Import challans. Pull in your unconsumed challans or BINs.
4. Add deductees. One by one, or by CSV upload (up to 5 MB). Enter PAN, name, amount paid, TDS deducted, section code and dates.
5. Map challans. Match each deductee to the challan it was paid from. The difference for each challan should be ₹0.
6. Validate and confirm. Compare the summary with your books. Invalid and inoperative PAN counts should be 0. You can save a draft and return.
7. E-verify with Aadhaar OTP or DSC, then keep the acknowledgement.

Teams can split the work: a sub-user prepares and validates, and an admin e-verifies and files (CA Ahuja).

The warning that matters: no edit after submit

Once filed, the statement is locked. Corrections go through a correction statement. One source says a correction can be filed within two years from the end of the tax year in which the original was due (CAclubindia). Check before you submit:

• Every PAN is valid and operative.
• Section codes match the nature of payment.
• Amounts match your books, not just the challan.
• Each challan maps with zero difference.
• Dates of payment and deposit are right.

CA Ahuja puts it well: "Imported does not mean reconciled." The portal fills data. It does not know whether your rate or section is right.

What late filing costs

• Late fee: ₹200 per day, capped at the quarter's TDS. It must be paid before a late statement is accepted. (Quicko guide, citing section 427 of the Income-tax Act, 2025.)
• Penalty: ₹10,000 to ₹1,00,000 for non-filing or incorrect filing in specified cases (CAclubindia). I did not verify the section number under the new Act.
• Interest: 1% a month for failure to deduct, and 1.5% a month for failure to deposit after deduction (CAclubindia).

Illustration (my arithmetic): file Q2 on 15 November and the delay is 15 days from 1 November. That is 15 × ₹200 = ₹3,000, as long as quarterly TDS is higher.

Common mistakes to avoid

• Filing under the old form name or the old Act's section codes for post-April 2026 payments.
• Uploading a regular file when it should be a correction, or the reverse (official manual).
• Using an outdated FVU version on the upload route (official manual).
• Treating an upload acknowledgement as acceptance. A file can still be rejected (TaxGuru).
• Missing invalid PANs, which can lead to higher TDS and mismatches (CAclubindia).
• Filing a transaction in Form 140 that belongs in Form 141 (TaxGuru).

FAQs

What is Form 140?

The quarterly TDS statement for non-salary payments to residents. It replaces Form 26Q from Tax Year 2026-27.

What replaces Form 24Q and 27Q?

Form 138 and Form 144 (TaxGuru).

When is the Q2 TDS return due?

31 October 2026.

Is RPU and FVU still needed?

Not for the new online route on TRACES. The official manual still describes it for upload filing.

Where do I file Form 140 online?

On TRACES, under e-file & View (Quicko guide).

How do I verify the return?

Aadhaar OTP or DSC.

Can I edit after submitting?

No. File a correction statement.

What is the late fee?

₹200 a day, capped at the TDS for the quarter.

Does the old Act still apply to some payments?

Yes. Events on or before 31 March 2026 remain under the 1961 Act (TaxGuru).

What is Form 141?

A challan-cum-statement for specified transactions. It replaces 26QB to 26QE and has its own timeline (TaxGuru).

Do I get a TDS certificate?

Yes. Form 131 replaces 16A, and Form 130 replaces Form 16. I did not verify the issue dates.

My honest take

• The form change is mostly renaming. The real risk is wrong data, not the new screen.
• "No software needed" is true only for the online route, and mainly suits small filers. Check the other route if you have many deductees.
• Do not file on 31 October. Leave a week for PAN fixes and mapping.
• I could not verify some details: the new section for the penalty, the certificate due dates, and the bulk upload limit beyond 5 MB.

If TDS compliance feels heavy

Mismatched PANs, wrong sections and late statements are what turn a routine filing into notices. If you want a second pair of eyes before 31 October, Lawgical Station reviews TDS data and handles quarterly statements for businesses and professionals.

General information only, not tax or legal advice. Confirm against the Income-tax Rules, 2026 and the live portal.