Statutory Guides
Form 138 is the quarterly statement an employer files to report tax deducted from salary under Section 392 of the Income Tax Act, 2025. It replaces Form 24Q from tax year 2026-27. It is due by 31 July, 31 October and 31 January for the first three quarters, and by 31 May for the January to March quarter.
Last updated: . General explainer, not legal or tax advice.
Form 138 replaces Form 24Q. The department's FAQ describes it as the quarterly statement of tax deducted at source from salary under Section 392, filed under Section 397(3)(b) of the Income Tax Act, 2025. That section corresponds to Section 200(3) of the 1961 Act. The rule behind it is Rule 219 of the Income Tax Rules, 2026, which corresponds to Rule 31A of the 1962 Rules.
Form 138 covers salary paid from 1 April 2026. Quarters before that fall under the 1961 Act and its Form 24Q. The Form 24Q glossary entry covers the older return.
Any employer that deducts tax from employees' salaries. The FAQ names companies, firms, government offices and individuals as examples, so a sole proprietor who deducts tax from an employee's pay files it too. A statement is due for each quarter in which tax was deducted from salary.
Specified banks also file Form 138 for tax deducted on pension and interest paid to specified senior citizens. That part does not concern most employers.
| Quarter | Months | Due by | For tax year 2026-27 |
|---|---|---|---|
| Q1 | April to June | 31 July of the same financial year | 31 July 2026 |
| Q2 | July to September | 31 October of the same financial year | 31 October 2026 |
| Q3 | October to December | 31 January of the same financial year | 31 January 2027 |
| Q4 | January to March | 31 May after the end of the tax year | 31 May 2027 |
The fourth quarter date matters most. Form 130, the year end certificate for each employee, can only be downloaded after the fourth quarter statement is processed, and it is due by 15 June. That leaves about two weeks between the two dates.
Form 138 is filed electronically in the prescribed format. Annexure I goes in every quarter. Annexures II and III are added only in the fourth quarter statement. The quarterly statements report the salary paid and the tax deducted for each employee, against their PAN.
The PAN is the part to get right. The tax credit is matched to the PAN in the statement, so a wrong PAN means the employee does not see the tax you deducted, and their Form 130 comes out wrong. Challan details and amounts also have to match what was actually deposited.
The deductor receives an acknowledgment number once the statement is filed. The statement is then processed by the TDS Centralised Processing Cell. A filed statement cannot be edited. To fix a mistake, file a correction statement after the original has been processed.
There is a time limit. A correction statement can be filed within two years from the end of the tax year in which the statement was due. The department's own example: the Form 138 for the third quarter of tax year 2026-27 can be corrected up to 31 March 2029.
A late statement attracts a late filing fee under Section 427 of the Income Tax Act, 2025. A late or inaccurate statement can also lead to penalty proceedings under Sections 461 and 465(2)(g). The department's FAQ names these sections but does not give the amounts on that page, so ask your CA for the current figures.
The cost also lands on your staff. A late fourth quarter statement holds up every employee's Form 130, and some of them need it for a home loan or a visa application.
Usually the company's CA or accountant. Offrd does not file Form 138 and does not generate the return file. What Offrd does is hold the inputs your CA needs in one place: each employee's monthly salary and TDS, their PAN, verified in real time, and their regime choice and declarations. Payroll runs through Offrd payroll, and the numbers on the payslip are the same numbers your CA reports.
At the year end, download Form 130 from TRACES and upload the file to Offrd. Offrd emails each employee their own certificate. The rest of the changes under the new law are in the new Income Tax Act guide, and the monthly side of salary tax is in TDS on salary.
Form 138 is the quarterly statement an employer files to report tax deducted at source from salary under Section 392 of the Income Tax Act, 2025. It replaces Form 24Q from tax year 2026-27.
Yes, for salary paid from 1 April 2026. Quarters before that fall under the 1961 Act and Form 24Q.
31 July for April to June, 31 October for July to September, 31 January for October to December, and 31 May after the tax year ends for January to March.
Annexure I is filed every quarter. Annexures II and III are filed only with the fourth quarter statement.
Not by editing it. You file a correction statement after the original is processed, within two years from the end of the tax year in which the statement was due.
A late statement attracts a late filing fee under Section 427 of the Income Tax Act, 2025, and late or inaccurate statements can lead to penalty proceedings under Sections 461 and 465(2)(g). Ask your CA for the current amounts.
No. Your CA or accountant files it. Offrd keeps each employee's salary, TDS, PAN and regime choice clean, so the figures in the statement come from accurate payroll records.
The rules and dates on this page come from the official sources below. Forms and dates can change, so check the current version on the source before you act on it.
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