Form 138 Income Tax Rules 2026 pdf download and Key points

FORM NO. 138
[See rule 219(1)[Table: Sl. No. 1]]
Quarterly statement of deduction of tax under section 397(3)(b) of the Act in respect of salary paid to employee
under section 392, or income of specified senior citizen under section 393(1) [Table: Sl. No. 8(iii)], for the
quarter ended ……….. (June/September/December/March) ……. (Tax Year)]

Under the new Income-tax Rules, 2026, Form No. 138 replaces the old Form 24Q. It is governed by Section 397(3)(b) of the Income-tax Act, 2025, and Rule 219 of the Income-tax Rules, 2026.

Here are all the key points regarding Form No. 138:

1. Purpose of the Form Form 138 is a quarterly statement filed by employers to report Tax Deducted at Source (TDS) from salaries paid to employees. It is also used by specified banks to report TDS on pension and interest income paid to “Specified Senior Citizens” under section 393(1) [Table: Sl. No. 8(iii)].

2. Applicability and Mandatory Nature

• Who files: Every employer (such as a company, firm, government, individual, etc.) who deducts tax from employees’ salaries. Additionally, any specified bank that deducts tax on pension and interest income paid to specified senior citizens must file this form.
• Is it mandatory? Yes, filing Form 138 is mandatory for any quarter in which the employer or specified bank has deducted such tax.

3. Frequency and Due Dates Form 138 must be filed quarterly. The specific due dates are:

• Quarter 1 (Apr – Jun): 31st July of the Financial Year.
• Quarter 2 (Jul – Sep): 31st October of the Financial Year.
• Quarter 3 (Oct – Dec): 31st January of the Financial Year.
• Quarter 4 (Jan – Mar): 31st May of the Financial Year immediately following the Tax Year.

4. Mode of Filing and Revisions

• Electronic Filing Only: It is mandatory to furnish Form 138 electronically. It is prepared using the Return Preparation Utility (RPU) provided by TIN-NSDL and validated through the File Validation Utility (FVU). The resulting file is uploaded online on the e-filing website or submitted physically at a TIN-FC center.
• No Direct Editing: Once submitted, the form cannot be edited. However, the deductor can file a correction statement after the original statement is processed by CPC-TDS. This correction must be filed within two years from the end of the tax year in which the statement was required to be delivered.

5. Structure of the Form The statement is systematically divided into different parts and annexures:

• Part A (Particulars of the Deductor): Captures details like the Type of Deductor, Name, Address, PAN, TAN, and details of the person responsible for the deduction.
• Part B (Deposit Details): Captures details of the tax deducted and paid to the Central Government (including BSR Code, Date of Deposit, Challan Serial No., Minor Head, etc.).
• Annexure I (Deductee-wise break up): Details the PAN, Name, amount paid/credited, tax deducted, and tax deposited for each deductee. This annexure must be submitted for all four quarters.
• Annexure II (Salary Details): Submitted only in the last quarter (Q4). It provides a detailed summary of the whole tax year’s salary, deductions, rebates, and net tax liability for employees.
• Annexure III (Senior Citizen Details): Submitted only in the last quarter (Q4). It provides a detailed summary of pension and interest income, deductions, rebates, and net tax payable specifically for Specified Senior Citizens.

6. Processing and Outcomes

• Upon successful submission, the deductor receives an Acknowledgment Receipt Number (ARN).
• The data submitted in Annexure I and Annexure II/III is processed by CPC-TDS and utilized by TRACES to prepare Form No. 130 (the annual TDS Certificate for salary/pension), which the employer must then issue to the employee/senior citizen by 15th June.
• The deducted amount will directly reflect in the deductee’s Annual Information Statement (AIS) in Form No. 168, allowing them to seamlessly claim the TDS credit while filing their Income Tax Return.

7. Key Updates in the 2026 Rules

• Smart Form Capabilities: It has been upgraded to a “smart” form that features auto-population from the deductor’s TRACES profile, real-time validations, drop-downs, and API integrations.
• Streamlined Data: Outdated fields (like Token No. and TAN Registration No.) have been replaced or deleted. Surcharge and cess details have been consolidated under challan/book adjustments rather than needing separate entries.
• Standardization: The terms “Assessment/Financial/Previous year” are replaced with “Tax year“, the currency symbol “Rs.” is replaced with “₹”, and grouping anomalies for Name, Address, and PAN have been separated into distinct boxes.

Form 138 Income Tax Rules 2026 pdf download

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Form No.138– Frequently Asked Questions

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Guidance Note on Form 138

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Related Post

Section 392 Income Tax Act 2025 Salary and accumulated balance due to an employee.

Section 393 Income Tax Act 2025 Tax to be deducted at source.

Section 397 Income Tax Act 2025 Compliance and reporting.

RULE 219 INCOME-TAX RULES 2026 Statement of deduction or collection of tax at source under section 397(3)(b).

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