TDS Return Filing in Hyderabad for Small Businesses: Forms 138, 140, 144, Due Dates and Late Fees (FY 2026-27)

Looking for expert help with TDS return filing services in Hyderabad? The team at Tax Garden, based in Kondapur, Hyderabad, helps Indian SMEs stay compliant. End-to-end filings, notices, and deadline tracking, all in one place.

When is the TDS return due for July to September 2026? It was due by 31 October 2026, and the next one, for October to December 2026, is due by 31 January 2027. Every Hyderabad business that deducts TDS files a quarterly statement: Form 138 for salary, Form 140 for other payments to residents, Form 144 for non-residents and Form 143 for TCS. A late statement costs Rs 200 a day under Section 427, capped at the TDS amount.

Key Takeaways

• Tax year 2026-27 uses new form numbers: Form 138 (old 24Q), Form 140 (old 26Q), Form 144 (old 27Q) and Form 143 (old 27EQ), under Rule 219(1) of the Income-tax Rules, 2026.
• Quarterly due dates are unchanged: 31 July, 31 October, 31 January and 31 May.
• TDS deducted in a month goes to the government by the 7th of the next month; March deductions by 30 April.
• Office rent above Rs 50,000 a month attracts 10% TDS, professional fees above Rs 50,000 a year attract 10%, and contractor payments attract 1% or 2%.
• Late statements cost Rs 200 a day (Section 427). Late deposits cost 1.5% a month in interest (Section 398(3)).

TDS is a central tax, so the law is the same in Kondapur as anywhere else in India. What differs is the mix of payments. A typical Hyderabad small business pays rent for an office in HITEC City or Madhapur, fees to freelance developers and consultants, a contractor for interiors or housekeeping, and salaries. Each of those has its own TDS row, rate and threshold. Getting one wrong shows up months later as a default notice on TRACES.

This guide covers the quarterly TDS return for tax year 2026-27 (FY 2026-27), the first year under the Income-tax Act, 2025. For a national overview of the service, see our TDS filing services guide.

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Who has to deduct TDS in a Hyderabad business?

Most TDS rows in Section 393(1) of the Income-tax Act, 2025 apply to a "specified person". Section 402(37) defines this as:

• any person that is not an individual or HUF, so every private limited company, LLP, partnership firm, trust and society; and
• an individual or HUF whose turnover from business exceeded Rs 1 crore, or gross receipts from profession exceeded Rs 50 lakh, in the tax year before the one in which the payment is made.

A proprietor below those limits isn't off the hook entirely. Three rows apply to any individual or HUF regardless of turnover, at 2%:

• rent above Rs 50,000 for a month or part of a month (Table Sl. No. 2(i));
• contract work, professional fees or commission above Rs 50 lakh in the year (Table Sl. No. 6(ii));
• purchase of immovable property of Rs 50 lakh or more (Table Sl. No. 3(i)).

These are reported through a challan-cum-statement in Form 141, not a quarterly return, and Section 397(1)(c) excuses the deductor from taking a TAN for them.

TDS rates on common Hyderabad business payments

Comparison

TDS on Payments to Residents, Tax Year 2026-27

Payment	Who deducts	Rate	Threshold	Section 393(1) Table row (old section)
Office or shop rent (land, building, furniture)	Specified person	10%	Rs 50,000 a month	Sl. 2(ii) (old 194-I)
Rent for plant, machinery or equipment	Specified person	2%	Rs 50,000 a month	Sl. 2(ii) (old 194-I)
Rent paid by a small individual or HUF	Other individuals and HUFs	2%	Rs 50,000 a month	Sl. 2(i), via Form 141 (old 194-IB)
Contractor or labour contract	Company, firm, LLP and other designated persons	1% (individual or HUF payee), 2% (others)	Rs 30,000 a bill or Rs 1,00,000 a year	Sl. 6(i) (old 194C)
Professional fees, royalty	Specified person	10%	Rs 50,000 a year	Sl. 6(iii) (old 194J)
Fees for technical services, call centre payees	Specified person	2%	Rs 50,000 a year	Sl. 6(iii) (old 194J)
Director's fees or commission (non-salary)	Specified person	10%	Nil	Sl. 6(iii) (old 194J)
Commission or brokerage (not insurance)	Specified person	2%	Rs 20,000 a year	Sl. 1(ii) (old 194H)
Interest on loans from non-banks	Specified person	10% (rates in force)	Rs 10,000 a year	Sl. 5(iii) (old 194A)
Salary	Any employer	Average rate of tax on estimated salary	Taxable salary	Section 392 (old 192)

Source: Income-tax Act, 2025 as amended by the Finance Act, 2026: Section 393(1) Table, Section 402(11) and 402(37), Section 392; rate for Sl. 5(iii) from Part II of the First Schedule to the Finance Bill, 2026

Example: an office in HITEC City. A private limited company pays Rs 1,20,000 a month as rent to the individual who owns its office floor. The company is a specified person and the rent is for a building, so it deducts 10%, or Rs 12,000, every month and pays the landlord Rs 1,08,000. That Rs 12,000 is deposited by the 7th of the next month and reported in Form 140.

Example: a freelance developer. The same company pays a freelance React developer Rs 40,000 in June and Rs 35,000 in August. The first bill is below the Rs 50,000 yearly threshold, but the August bill takes the total to Rs 75,000. The company deducts 10% on the entire Rs 75,000 when it credits the August bill, because Section 393(1)(a) applies the rate to the whole amount once the aggregate crosses the threshold.

For a deeper look at how professional fees are treated, see our guide to TDS on professional and technical fees.

Step 1: Get a TAN before you deduct

Section 397(1)(a) requires every person who deducts or collects tax to apply for a Tax Deduction and Collection Account Number (TAN). Rule 216 of the Income-tax Rules, 2026 sets the form: Form 135 for businesses and other non-government deductors, Form 134 for government entities. Apply before the first deduction. If you missed that, Rule 216(4)(b) allows the application within 30 days from the end of the month in which you deducted.

The TAN goes on every challan, return and certificate. A wrong TAN on a challan is one of the most common reasons a quarterly return shows a short payment.

Step 2: Deposit TDS by the 7th

Rule 218(2) of the Income-tax Rules, 2026 sets the deposit dates for non-government deductors:

• TDS deducted in April to February: by the 7th of the following month.
• TDS deducted in March: by 30 April.
• Form 141 cases (Sl. Nos. 2(i), 3(i), 6(ii) and 8(vi)): within 30 days from the end of the month of deduction, with the challan-cum-statement.

Rule 218(4) lets the Assessing Officer, with the Joint Commissioner's approval, allow quarterly deposits for salary and some interest and commission payments (7 July, 7 October, 7 January and 30 April). That's an exception granted on application, not a default.

Late deposit carries interest under Section 398(3)(a) of the Income-tax Act, 2025:

• 1% a month or part of a month from the date the tax was deductible to the date you actually deducted it; and
• 1.5% a month or part of a month from the date of deduction to the date of payment.

The interest must be paid before the quarterly statement is filed.

Step 3: File the quarterly TDS return

Rule 219(1) of the Income-tax Rules, 2026 lists which form to use. Rule 219(4) sets the due dates.

Comparison

Quarterly TDS and TCS Statements, Tax Year 2026-27

Form	Old form	What it reports
Form 138	24Q	TDS on salary under Section 392 (other than 392(7))
Form 140	26Q	TDS on payments to residents under Section 393(1), and 392(7) and 393(3) for resident deductees
Form 144	27Q	TDS on payments to non-residents and RNORs
Form 143	27EQ	TCS under Section 394(1)
Form 141	26QB, 26QC, 26QD family	Challan-cum-statement for rent by small individuals, property purchase, Sl. 6(ii) payments and virtual digital assets

Source: Income-tax Rules, 2026, Rule 219(1) and 219(5)

Comparison

TDS Return Due Dates, FY 2026-27

Quarter	Period	Due date
Q1	April to June 2026	31 July 2026
Q2	July to September 2026	31 October 2026 (passed)
Q3	October to December 2026	31 January 2027
Q4	January to March 2027	31 May 2027

Source: Income-tax Rules, 2026, Rule 219(4)

Before you file, match three things: the challans paid (by CIN), the deductee PANs, and the amounts in your books. A PAN error or a challan tagged to the wrong quarter is what produces a short-payment or short-deduction default later. If a return has already gone in with an error, it can be revised; our TDS return correction guide walks through it.

Step 4: Issue TDS certificates

Rule 215(1) of the Income-tax Rules, 2026 sets the certificate deadlines:

• Form 130 (old Form 16) for salary: by 15 June after the end of the tax year.
• Form 131 (old Form 16A) for other TDS: within 15 days from the due date of the quarterly statement. For the July to September 2026 quarter, that's 15 November 2026.
• Form 132 (old Form 16B family) for Form 141 deductions: within 15 days from the due date of the challan-cum-statement.

Your deductees need these certificates to claim the TDS in their own returns. Freelancers and landlords in Hyderabad notice quickly when a Form 131 doesn't arrive.

What happens if you file late

Three separate costs can apply, and they stack:

1. Late fee, Section 427 (old 234E): Rs 200 for every day the statement is late, capped at the TDS amount in that statement. It must be paid before the statement is accepted.
2. Penalty, Section 461 (old 271H): Rs 10,000 to Rs 1,00,000, also for incorrect information in the statement. Section 461(2) gives a way out for late filing: no penalty if the tax, fee and interest are paid and the statement is filed within one month of the due date.
3. Interest, Section 398(3): 1% or 1.5% a month for late deduction or late deposit, as above.

Example. A Kondapur firm deducted Rs 18,000 in July to September 2026 and deposited it on time, but files its Form 140 on 30 November 2026, 30 days after the 31 October due date. The late fee is 30 x Rs 200 = Rs 6,000, which is below the Rs 18,000 TDS, so the full Rs 6,000 applies. Because the statement was filed within one month and the fee was paid, Section 461(2) protects it from the penalty.

Our Section 234E and 271H guide covers notices for older years under the 1961 Act.

A quarterly TDS checklist for Hyderabad businesses

1. List every vendor, landlord and freelancer you pay, with PAN, and map each to its Table row.
2. Deduct at the time of credit in your books or payment, whichever is earlier.
3. Deposit by the 7th of the next month (30 April for March).
4. Reconcile challans, PANs and books at quarter end.
5. File Form 138, 140, 144 or 143 by 31 July, 31 October, 31 January or 31 May.
6. Issue Form 131 within 15 days of the due date, and Form 130 by 15 June.
7. Check TRACES for defaults after processing and correct them before notices pile up.

If you also run payroll, the TDS on salary sits alongside PF, ESI and professional tax every month. Our payroll compliance checklist for Hyderabad startups covers that side.

How Tax Garden handles TDS for Hyderabad businesses

From our Hyderabad tax compliance office in Kondapur, we map your vendors and landlords to the right TDS rows, deposit TDS by the 7th, file Form 138 and Form 140 every quarter and issue Form 130 and 131 certificates on time. We also respond to TRACES default notices. See our TDS filing service. If you need GST returns handled too, see our GST filing services in Hyderabad.

Frequently Asked Questions

What is the due date for the TDS return for July to September 2026?

It was due on 31 October 2026. Rule 219(4) of the Income-tax Rules, 2026 fixes the quarterly due dates as 31 July, 31 October, 31 January and 31 May (for the January to March quarter). If you missed it, file now: the Rs 200 a day fee under Section 427 runs from 1 November 2026, capped at the TDS amount. The October to December 2026 statement is due on 31 January 2027.

Which TDS return form replaces Form 24Q and Form 26Q?

From tax year 2026-27, salary TDS is reported in Form 138 (old 24Q), TDS on other payments to residents in Form 140 (old 26Q), TDS on payments to non-residents in Form 144 (old 27Q) and TCS in Form 143 (old 27EQ). The list is in Rule 219(1) of the Income-tax Rules, 2026.

Does a small proprietor in Hyderabad have to deduct TDS?

Only if the proprietor is a specified person or the payment falls under a row that applies to any person. Section 402(37) of the Income-tax Act, 2025 makes an individual or HUF a specified person when turnover exceeded Rs 1 crore (business) or receipts exceeded Rs 50 lakh (profession) in the preceding tax year. Below that, rent above Rs 50,000 a month and contract or professional payments above Rs 50 lakh a year still need TDS at 2%, paid through Form 141 without a TAN.

What is the late fee for filing a TDS return late?

Rs 200 for every day of delay under Section 427 of the Income-tax Act, 2025 (old Section 234E), capped at the TDS amount in the statement. The fee must be paid before the statement is filed. A separate penalty of Rs 10,000 to Rs 1,00,000 under Section 461 (old 271H) can apply, but not if tax, fee and interest are paid and the statement is filed within one month of the due date.

What is the TDS rate on office rent in Hyderabad?

10% on rent for land, buildings, furniture or fittings and 2% on rent for plant, machinery or equipment, when a company, firm or other specified person pays more than Rs 50,000 for a month or part of a month. This is Section 393(1), Table Sl. No. 2(ii) of the Income-tax Act, 2025 (old Section 194-I).

When must TDS deducted in a month be deposited?

By the 7th of the following month, and by 30 April for amounts deducted in March, under Rule 218(2) of the Income-tax Rules, 2026. TDS reported through Form 141 (rent by small individuals, property purchase, and contract or professional fees paid by non-audit individuals) is due within 30 days from the end of the month of deduction.