TDS Compliance • Income Tax Act 2026

Download Form 140 (Form No.26Q)
TDS Return Other than Salary

The complete 2026 guide to non-salary TDS filing — covering due dates, section codes, dummy data, and expert insights by CA Sagar Batra.

By CA Sagar Batra | Chartered Accountant | April 2026

⬇ Download Form 140 – Official PDF & Utilities Instant access to the official form as notified in the Gazette of India under Rule 219(1) [Table: Sl. No. 3]

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Form 140 – PDF Official Quarterly TDS Return (Non-Salary)

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RPU Utility Return Preparation Utility – NSDL/TRACES

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FVU Tool File Validation Utility – Error Check

Introduction

What is Form 140 TDS Return?

Form 140 (Form No.26Q) is the official quarterly statement of deduction of tax under Section 397(3)(b) of the Income Tax Act, 2026. It is filed for payments made other than salary to resident Indians — replacing the earlier Form 26Q with effect from Tax Year 2026 onwards.

When you pay a consultant, rent an office, hire a contractor, or credit interest, you deduct tax at source and must report every such transaction to the Income Tax Department — that quarterly reporting is done through Form 140.

🎓 Expert Insight — CA Sagar Batra

"Form 140 is not just a compliance checkbox — it directly affects your vendor's ability to claim TDS credit in Form 26AS. A missed or incorrect filing can cost your vendor lakhs in blocked refunds and create unwanted scrutiny for your business."

— CA Sagar Batra, Chartered Accountant

Key Change 2026

Form 140 vs Old Form 26Q

The Income Tax Department introduced Form 140 under the new Income-tax Rules, 2026 with significant structural improvements over the old Form 26Q.

Feature	Old Form 26Q	New Form 140 2026
Applicable Law	Income Tax Act, 1961	Income Tax Act, 2026
Filing Mode	Online / Offline	Digital Only
Section References	194A, 194C, 194H, etc.	393(1), 393(3), 397(3)(b)
TRACES Integration	Partial	Full Real-Time
Auto-population	Limited	Enhanced Pre-fill
VDA/Crypto Coverage	Added via amendment	Built-in from start
Smart Validation	Basic	Advanced Inline Checks
TDS Certificate	Form 16A	Form 131

Know the Difference

Form 140 vs Form 138

These two TDS return forms are frequently confused. Filing the wrong form is a common compliance error. Here's a clear comparison:

Parameter	Form 138 (Salary)	Form 140 (Non-Salary)
Purpose	Salary TDS Return	Non-Salary TDS Return
Applicable Section	Section 392	Section 397(3)(b)
Who Files	Employers	Deductors (non-salary)
Payments Covered	Salary, perquisites, arrears	Rent, fees, interest, commission
TDS Certificate	Form 130 (erstwhile 16)	Form 131 (erstwhile 16A)
Frequency	Quarterly	Quarterly

Practical Example: Zenith Solutions Pvt. Ltd. pays salaries to 40 employees and hires a freelance IT consultant paying ₹80,000/month. They file Form 138 for employee salaries and Form 140 for the consultant's fees — both separately, every quarter.

Section-Wise Reference

TDS Rate Chart 2026 — Form 140 Payments

The table below covers the major section codes used in Form 140. Each code corresponds to a specific nature of payment.

Section	Nature of Payment	Code	Threshold	TDS Rate
393(1) [Sl.5(ii).D(a)]	Interest – Bank/PO – Senior Citizen	1020	₹50,000	10%
393(1) [Sl.5(ii).D(b)]	Interest – Bank/PO – Others	1021	₹40,000	10%
393(1) [Sl.5(iii)]	Interest – Other Sources	1022	₹5,000	10%
393(1) [Sl.6(i).D(a)]	Contractor – Individual/HUF	1023	₹30,000 / ₹1 lakh p.a.	1%
393(1) [Sl.6(i).D(b)]	Contractor – Others	1024	₹30,000 / ₹1 lakh p.a.	2%
393(1) [Sl.6(iii).D(a)]	Technical Fees / Call Centre / Film Royalty	1026	₹30,000	2%
393(1) [Sl.6(iii).D(b)]	Professional Fees	1027	₹30,000	10%
393(1) [Sl.6(iii).D(b)]	Director Fees / Remuneration	1028	—	10%
393(1) [Sl.2(ii).D(a)]	Rent – Machinery/Equipment	1008	₹2,40,000 p.a.	2%
393(1) [Sl.2(ii).D(b)]	Rent – Land/Building/Furniture	1009	₹2,40,000 p.a.	10%
393(1) [Sl.1(i)]	Commission – Insurance	1005	₹15,000	5%
393(1) [Sl.1(ii)]	Commission/Brokerage – Others	1006	₹15,000	5%
393(1) [Sl.7]	Dividend – Domestic Company	1029	₹5,000	10%
393(1) [Sl.8(v)]	E-Commerce Participant Payments	1035	₹5 lakh p.a.	1%
393(1) [Sl.8(vi)]	Virtual Digital Asset (VDA) Transfer	1037	₹10,000	1%
393(3) [Sl.1]	Lottery / Crossword / Card Games	1058	₹10,000	30%
393(3) [Sl.2]	Winnings – Online Games	1060	No threshold	30%
393(3) [Sl.5.D(b)]	Cash Withdrawal – Others (Bank)	1065	₹1 Crore	2%
393(3) [Sl.7]	Partner Salary/Remuneration from Firm	1067	—	10%

Illustrative Reference

Sample Filled Form 140 — Dummy Data

Below is illustrative dummy data to help you understand how Form 140 is actually structured and filled. All names, PANs, and amounts are fictional and for educational purposes only.

FORM NO. 140 — Part A: Deductor Details Q1 | April–June 2025–26

Section I — Deductor Information

Row 1 — Type

☑ Non-Government

Row 2 — Name

Zenith Solutions Private Limited

Row 3 — Address

402, Prestige Tower, MG Road, Bengaluru, Karnataka – 560001

Row 4 — PAN

AABCZ1234P

Row 5 — TAN

BLRZ12345A

Row 6 — Email

accounts@zenithsolutions.in

Row 7 — Contact

+91-9876543210

Row 8 — Tax Year

2025–26

Row 9 — Filed Earlier?

Section II — Person Responsible for TDS

Row 12 — Name

Mr. Ramesh Kumar Sharma

Row 13 — Address

Same as company address

Row 14 — PAN

ABCRS5678Q

Row 15 — Email

ramesh.sharma@zenithsolutions.in

Row 16 — Contact

+91-9845001122

FORM NO. 140 — Part B: Challan Details Challan via BSR Code

Challan / Tax Deposit Information

Col B — Total Tax Deducted

₹18,540

Col C — Total Interest

₹0

Col D — Total Fee (Sec. 427)

₹0

Col F — Total Deposited

₹18,540

Col G — Mode

C (Challan — e-payment)

Col H — BSR Code

0040012

Col I — Date of Deposit

07/05/2025

Col J — Challan Serial No.

00234

Col K — Minor Head

200

Annexure — Deductee-Wise TDS Breakup

Sl.	Deductee PAN	Name	Section	Date	Amount (₹)	TDS (₹)	Rate
1	AAAPA1234B	Priya Anand (Freelancer)	1027	15/04/2025	₹55,000	₹5,500	10%
2	BBBPB5678C	Sunshine Properties	1009	01/04/2025	₹80,000	₹8,000	10%
3	CCCPC9012D	Reliable Contractors LLP	1024	20/04/2025	₹50,000	₹1,000	2%
Total TDS (Q1 April–June 2025):						₹18,540

Step-by-Step

How to File Form 140 — Process

Deduct TDS at Time of Payment

Deduct at the time of credit or payment — whichever is earlier. Ensure the correct section code and rate apply for each transaction type.

Deposit TDS via Challan 281

Deposit with an authorized bank using Challan 281 by the 7th of the month following deduction (e.g., April TDS → deposit by 7th May). March TDS is due by 30th April.

Collect PAN & Payment Details

Request valid PAN from every payee before making payment. Without PAN, you must deduct TDS at 20%. Compile bills, invoices, and challan receipts.

Prepare Return Using RPU

Use the latest Return Preparation Utility (RPU) from NSDL/TRACES. Enter deductor, deductee, and challan details. Fill the Annexure with PAN and section codes for each vendor.

Validate Using FVU

Run the prepared file through the File Validation Utility (FVU) to catch data entry errors, invalid PANs, duplicate entries, or missing mandatory fields before upload.

Upload on Income Tax Portal

Log in at incometax.gov.in using your TAN and PAN credentials. Upload the validated .fvu file. Alternatively, submit via an authorized TIN Facilitation Centre.

Download Acknowledgement

After successful upload, download your acknowledgement with a unique receipt number. Check status and defaults via the TRACES/CPC-TDS portal.

Issue Form 131 to Deductees

Generate and issue Form 131 (TDS Certificate) to each deductee via TRACES within 15 days of return filing. This allows them to claim TDS credit in their own returns.

Calendar

Quarterly Due Dates

Quarter	Period Covered	TDS Deposit By	Return Filing Deadline
Q1	April – June	7th of following month	31st July
Q2	July – September	7th of following month	31st October
Q3	October – December	7th of following month	31st January
Q4	January – March	30th April (March TDS)	31st May

Enforcement

Penalties for Non-Compliance

Default	Provision	Penalty / Interest
Late filing (per day)	Section 234E	₹200/day (up to TDS amount)
Non-filing beyond 1 year	Section 271H	₹10,000 to ₹1,00,000
Late TDS deduction	Interest	1% per month
Late TDS deposit	Interest	1.5% per month
Wrong PAN of deductee	Higher deduction rule	TDS @ 20% applied

CA Sagar Batra's Warning

"Even a single day's delay in TDS deposit is treated as one full month for interest calculation. On large payments, this can silently accumulate into significant amounts over a quarter. Automate your TDS deposit calendar without exception."

— CA Sagar Batra, Chartered Accountant

Avoid These

Common Mistakes to Avoid

Entering an incorrect or unverified PAN for the deductee — this blocks their 26AS credit entirely
Not filing a nil return when no non-salary payments were made in the quarter
Mixing salary and non-salary payments — salary TDS must go into Form 138 exclusively
Using outdated section codes — Form 140 uses new 4-digit codes (e.g., 1027 instead of 194J)
Forgetting to issue Form 131 (TDS Certificate) to deductees within 15 days of return filing
Not reconciling challan amounts with return data before upload — mismatch triggers defaults
Depositing TDS in the wrong minor head — always use Minor Head 200 for TDS payments

Common Questions

Frequently Asked Questions

Can I revise Form 140 after filing?

Yes. Correction statements can be filed within two years from the end of the relevant tax year through the TRACES portal. Use the online correction facility — do not ignore errors after filing.

Is electronic filing of Form 140 mandatory?

Yes. Manual filing is no longer accepted under the Income Tax Act, 2026. You must use the designated RPU/FVU utilities and upload the validated file online via the Income Tax portal.

What if a vendor refuses to provide their PAN?

You must deduct TDS at 20% as mandated under higher deduction rules. Write code "C" in column O of the Annexure to indicate the reason for higher deduction.

Can Form 140 cover multiple TDS sections in one filing?

Yes. A single consolidated quarterly return covers all applicable section codes — 1005 through 1067 — within the same form. No separate return per section is required.

Do I file Form 140 if there are no non-salary transactions?

Strongly recommended — filing a "Nil Return" ensures hassle-free compliance and avoids automated notices or defaults from the department. CA Sagar Batra recommends always filing nil returns as best practice.

What is the difference between Form 131 and Form 16A?

Form 131 is the TDS certificate issued under the Income Tax Act, 2026 for non-salary deductions, replacing what was previously known as Form 16A under the 1961 Act. Functionally they serve the same purpose — proof of TDS for the deductee.

Download Form 140 (Form No.26Q)TDS Return Other than Salary