TDS Return Form 138: Meaning, Due Date, Applicability & Process

Imagine a company paying salaries to its employees every month. Before paying their salaries, the company deducts a certain amount as tax and deposits it with the government. But is depositing the tax enough? No. The company must also tell the Income Tax Department how much tax it deducted, from whom it deducted the tax, and how much it deposited. This is where TDS Return Form 138 comes in.

Need help with TDS return filing? Connect with Startup Movers for TDS compliance, return preparation, filing assistance and other tax-related services to help your business meet its compliance requirements.

What Is TDS Return Form 138?

TDS Return Form 138 is a quarterly tax statement that tells the Income Tax Department how much tax an employer or specified bank has deducted from certain payments and deposited with the government.

To understand it, imagine a company paying salaries to its employees. If the company is required to deduct tax from an employee's salary, it deducts the applicable amount before paying the remaining salary. The deducted tax is then deposited with the government.

After deducting and depositing the tax, the company must report the details to the Income Tax Department through the required TDS statement. Form 138 is used for reporting salary TDS and certain pension or interest income paid to specified senior citizens, where the relevant provisions apply.

Earlier, employers used Form 24Q to report TDS deducted from salaries. Under the Income-tax Act, 2025 and Income-tax Rules, 2026, Form 138 is the corresponding form under the new tax framework.

In simple words, Form 138 is a report that tells the government how much tax was deducted from covered payments, who paid the tax, and how much was deposited.

It is generally filed once every quarter, which means four times during the year.

What Is the Purpose of Form 138?

The main purpose of Form 138 is to report TDS deductions and help the Income Tax Department maintain accurate tax records.

It serves several important purposes:

• Reports tax deductions: Shows how much tax was deducted from salaries and other covered payments.
• Records tax deposits: Provides information about the tax deposited with the government.
• Maintains tax records: Helps match the deducted tax with the correct person.
• Helps employees check tax credit: Reported TDS can be reflected in the employee's tax records after processing.
• Supports tax compliance: Helps employers and specified banks meet their legal reporting responsibilities.

Who Is Required to File Form 138?

Form 138 must be filed by the following persons when the applicable TDS provisions require them to deduct tax.

1. Employers Deducting TDS From Salaries

Employers, including companies, partnership firms and government bodies, must file Form 138 when they deduct TDS from employees’ salaries under the applicable income-tax rules.

For Tax Year 2026–27, the basic exemption limit under the new tax regime is ₹4 lakh. Under the old tax regime, it is generally ₹2.5 lakh for individuals below 60 years, ₹3 lakh for resident senior citizens aged 60–79, and ₹5 lakh for resident super senior citizens aged 80 or above.

These are basic exemption limits, not fixed gross-salary thresholds. Whether TDS must be deducted depends on the employee’s estimated taxable income, applicable tax regime, and eligible deductions or rebates.

Example: If an employee’s estimated tax liability is nil after applying the relevant rules and rebates, salary TDS may not be required. If the employer deducts TDS, it must report the deduction through Form 138 for the relevant quarter.

2. Specified Banks Paying Certain Income to Senior Citizens

Specified banks must also file Form 138 when they deduct TDS from pension or interest income covered by the relevant provisions for specified senior citizens.

This requirement applies only to the categories of income and persons covered by the law. It does not mean that every payment made by a bank to a senior citizen must be reported through Form 138.

What Are the Contents of Form 138?

Form 138 contains details about the deductor, the tax deducted, the person receiving the payment and the amount deposited with the government.

The form has the following main parts and annexures.

Official sources:Income Tax Department — Form 138 Comprehensive Note

The exact details required depend on the type of deductor and the income being reported.

What Documents Are Required for Form 138?

Before filing Form 138, the employer or deductor should keep the following documents and information ready:

1. Valid TAN: The Tax Deduction and Collection Account Number of the deductor.
2. PAN details: PAN of the employees or other persons whose payments are being reported.
3. Salary or payment records: Details of the amounts paid or credited during the quarter.
4. TDS calculation details: Records showing how much tax was deducted from each person's payment.
5. TDS payment challans: Proof of tax deposited with the government.
6. Bank and payment records: Relevant tax payment dates, challan numbers and other payment information.
7. Deduction and rebate details: Information needed for the annual tax calculation, particularly in the fourth quarter.
8. Digital Signature Certificate (DSC): If DSC-based filing or verification is applicable.

The required information may vary depending on whether the statement is being filed by an employer or a specified bank.

How to File TDS Return Form 138?

Form 138 can be filed in two ways: online through the Income Tax portal or offline at a TIN Facilitation Centre (TIN-FC).

Before filing, prepare the form using the prescribed Return Preparation Utility (RPU) and check it for errors using the File Validation Utility (FVU).

Method 1: File Form 138 Online

1. Collect the details: Keep the deductor’s TAN, recipients’ PAN details, salary or payment records, TDS details and tax payment challans ready.
2. Download the utility: Visit the Protean TIN website and download the latest applicable Return Preparation Utility (RPU).
3. Fill in Form 138: Enter the deductor’s details, payment details, recipients’ details and tax deducted. Add the extra details required for the fourth quarter, where applicable.
4. Check for errors: Use the File Validation Utility (FVU) to check the form and create the validated file.
5. Prepare the upload file: Put the validated file into the required ZIP format, following the current instructions.
6. Log in to the Income Tax portal: Visit the Income Tax e-Filing portal and log in using the deductor’s registered account.
7. Select Form 138: Follow the portal’s instructions to select Form 138, the relevant tax year, quarter and filing type.
8. Upload and verify: Upload the ZIP file and complete the required verification, using a Digital Signature Certificate (DSC) where applicable.
9. Check the status: Check the filing status on the portal. If the statement is rejected, correct the errors and submit it again.

Method 2: File Form 138 Offline

1. Prepare the form: Fill in Form 138 using the prescribed RPU.
2. Check the form: Use the FVU to check for errors and create the validated file.
3. Visit a TIN Facilitation Centre: Find a centre that accepts the relevant TDS statement.
4. Submit the statement: Submit it in the required format and follow the centre’s instructions.
5. Keep the acknowledgement: Save the receipt as proof of submission.

Important: Use the latest applicable filing utility and follow the current instructions. Check the filing status to confirm that your statement has been accepted.

What Is the Due Date for Form 138?

Form 138 is generally filed quarterly, meaning one statement is submitted for each three-month period.

The regular due dates are:

What Are the Fees for Form 138?

There is generally no separate government filing fee for submitting Form 138 on time. However, late filing or other defaults may lead to additional charges or penalties under the applicable law.

Late Filing Fee

Under the established TDS statement late-filing fee provision, the fee is ₹200 for each day of delay, subject to a maximum equal to the amount of TDS covered by the statement.

For example: if a statement is delayed by 10 days, the calculated fee would be ₹2,000, provided this does not exceed the applicable TDS amount.

The precise provision applicable to the relevant tax year should be checked before filing.

Penalty for Certain Defaults

A separate penalty may apply for failing to file the statement or submitting an incorrect statement, depending on the applicable legal provisions and circumstances.

Under the earlier Income-tax Act, 1961, Section 271H provided for a penalty ranging from ₹10,000 to ₹1,00,000 in covered cases, subject to the applicable conditions and relief provisions.

For Form 138 under the Income-tax Act, 2025, the corresponding provisions applicable to the relevant tax year should be checked rather than automatically applying the old section number.

Other Possible Costs

If an employer hires a tax professional to prepare, file or correct the statement, professional service charges may apply. These charges are separate from government fees

Conclusion

TDS Return Form 138 helps employers and specified banks report tax deducted from covered payments to the Income Tax Department. It is generally filed every quarter and includes details of the deductor, payment recipients, tax deductions and tax deposits. Keeping the required records ready makes filing easier and helps reduce errors. Filing on time and checking the statement carefully can also help avoid late fees and other compliance issues.

Need help with TDS return filing? Connect with Startup Movers for TDS compliance, return preparation, filing assistance and other tax-related services to help your business meet its compliance requirements.