Form 138 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Form 138 is the quarterly statement that an employer files for tax deducted on salary, and for tax deducted on the income of a specified senior citizen. This article describes it as printed, as per the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026. Later notifications should be checked.
Under rule 219(1), Table, first row, every person deducting tax under section 392 (other than sub-section (7)) or section 393(1) delivers a quarterly statement in Form 138 to the Director General of Income-tax (Systems) or the person authorised by him, as per section 397(3)(b). The due dates in rule 219(4) are 31 July, 31 October, 31 January and 31 May. Form 138 has Part A, Part B, a declaration, and Annexures I, II and III.
The rule and the section
Section 397(3)(b) of the Income-tax Act, 2025 provides for the delivery of statements of tax deducted or collected at source; see section 397. Rule 219(1) lists four rows in a Table: Form 138 for salary and a specified senior citizen's income; Form 144 for non-residents; Form 140 for other payments; and Form 143 for collection under section 394(1). The siblings are Form 140, Form 143 and Form 144.
Rule 219(4) fixes the due dates for the quarter ending on the date in column B:
| Quarter ending | Due date |
|---|---|
| 30th June | 31st July of the financial year |
| 30th September | 31st October of the financial year |
| 31st December | 31st January of the financial year |
| 31st March | 31st May of the financial year immediately following the tax year in which the deduction or collection is required to be made |
Sub-rule (5) of rule 219 was amended by the Fifth Amendment Rules from 1 October 2026 for the challan-cum-statement in Form 141; it does not change Form 138. See our post on rule 219 for the rule in outline.
Employers who file Form 138 four times a year should reconcile it with payroll and challans each quarter; our TDS return filing team can take over the preparation and the reconciliation.
The heading and Part A
The printed heading reads "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) , for the quarter ended ... (June/September/December/March) ... (Tax Year)".
Part A, "Particulars of the deductor", has sixteen rows:
| Rows | Particulars |
|---|---|
| 1 to 5 | Type of deductor (Government or Non-Government); name (Note 1); address; Permanent Account Number (Note 3); Tax Deduction and Collection Account number |
| 6 to 8 | E-mail identity; contact number; tax year |
| 9 to 11 | Whether the statement was filed earlier for the quarter; if so, the return receipt number of the original statement; for a Government deductor, the AIN of the PAO, DTO or CDDO |
| 12 to 16 | The person responsible for deduction of tax: name, PAN, address, e-mail identity, contact number |
Part B: tax deducted and paid
Part B has two items. Item 1 is a table of the tax deducted and paid to the credit of the Central Government, with columns lettered A to K:
| Column | Particulars |
|---|---|
| A | Serial number |
| B | Total tax (Note 4: tax deducted plus surcharge and health and education cess) |
| C | Total interest |
| D | Total fee (Note 5: fee under section 427 for late filing of the statement) |
| E | Total penalty or others |
| F | Total amount deposited as per challan, or adjusted through book adjustment (B + C + D + E) (Note 6) |
| G | Mode of payment (Note 7) |
| H | BSR code, or receipt number of Form 137 (Note 8) |
| I | Date on which the amount was deposited through challan, or date of the transfer voucher |
| J | Challan serial number, or DDO serial number of Form 137 |
| K | Minor head of the challan (Note 9) |
Item 2 says which annexures to enclose: Annexure-I with each statement, with details for the relevant quarter, for an employee and a specified senior citizen; Annexure-II with the last statement (the quarter ending 31st March), with details for the whole tax year, for an employee; and Annexure-III with the last statement, with details for the whole tax year, for a specified senior citizen. The Declaration is signed by the person responsible for deducting tax, who certifies that all particulars are correct and complete.
The Notes of the main form: Note 1, name in full, with the Ministry or Department of the Central Government or the name of the State for a State Government; Note 3, a non-Government deductor must quote PAN and a Government deductor writes "PANNOTREQD"; Note 6, Government DDOs show the amount remitted by the PAO, CDDO or DTO and others the exact amount deposited by challan; Note 7, Government deductors writing "B" for book adjustment and others writing "C"; Note 8, the challan or transfer voucher particulars must be exactly the same as available at the departmental portal; Note 10, amounts in rupees.
Annexure I: deductee-wise break-up of TDS
The column heads of this narrow table are printed broken word by word; they are rebuilt here from the column letters (A) to (O).
| Columns | Particulars |
|---|---|
| A to E | Serial number; challan reference number (the serial number in the Part B table); PAN of the employee or specified senior citizen; name; employee reference number provided by the employer, or pension payment order number if available |
| F to I | Section code (Note 1); date of payment or credit; date of deduction; amount paid or credited |
| J to M | Total tax deducted (Note 2); whether the total tax in column J has been deposited (Yes or No); total tax deposited; date of deposit |
| N and O | Reason for non-deduction, lower deduction or higher deduction (Notes 3 and 4); certificate number of the certificate issued under section 395(1) |
Note 1 lists the section codes: 1001, payment to Government employees other than Union Government employees; 1002, payment to employees other than Government employees; 1003, payment to Indian Government employees; and 1032, payment to a specified senior citizen. Note 3: write "A" if lower or no deduction is on account of a certificate under section 395(1); Note 4: write "C" if deduction is at a higher rate under section 397(2) on account of non-furnishing of PAN.
Annexure II: salary paid and net tax payable
Annexure II has columns from A to BQ and is read in groups. Where a head cannot be read with certainty from the print, it is not given.
| Columns | Group |
|---|---|
| A to G | Serial number, PAN, name, whether opting out of taxation under section 202(1), deductee type (senior citizen, super senior citizen or others), dates of employment with the current employer in the current tax year |
| H to L | Gross salary under section 16; value of perquisites under section 17 and profits in lieu of salary under section 18 (as per Form 123 wherever applicable); total from the current employer; reported salary from other employers |
| M to R | Exempt allowances and other components under section 11 (travel concession, house rent allowance with the landlord's PAN where claimed, other special allowances, any other component) and the total exemption |
| S to Y | Deductions under section 19(1): tax on employment, standard deduction, gratuity, commuted value of pension, compensation to workmen, voluntary retirement amounts, leave encashment |
| Z to AD | Income chargeable under "Salaries"; loss from house property reported by the employee, with the lender's PAN; other income offered for TDS; gross total income |
| AE to BC | Deductions under Chapter VIII in gross, qualifying and deductible amounts: sections 123, 124(3), 124(1)(a), 126, 129, 125(1), 125(2), 133, 153 and other provisions; aggregate deductible |
| BD to BH | Total taxable income; income-tax on it; rebate under section 156; surcharge; health and education cess |
| BI to BL | Form 39 acknowledgement number and income on which relief under section 157 is claimed; relief; net tax liability |
| BM to BQ | Tax deducted by the current employer for the whole year (aggregate of column J of Annexure I); tax reported as deducted by other employers; other tax reported under section 392(4); total; shortfall or excess |
Notes to Annexure II: Note 1 defines salary (wages, annuity, pension, gratuity, fees, commission, bonus, perquisites, profits in lieu of salary and so on); Note 2 says an employer's deduction of, or payment on behalf of, an employee's contribution to an approved superannuation fund is included; Note 3, the landlord's PAN is mandatory where aggregate rent in the tax year exceeds one lakh rupees; Note 4, the lender's PAN is mandatory where the housing loan is from a person other than a financial institution or the employer; Note 5 lists sections 127, 130, 131, 134, 137 and 154 for the "other provision" columns.
Annexure III: specified senior citizen
Annexure III, headed "Details of pension and interest income paid or credited to the specified senior citizen during the tax year ... and net tax payable", runs from A to AM: PAN and name, deductee type (Note 1: "1" below the age of 80 years and "2" at 80 years or above), whether opting out of taxation under section 202, gross pension under section 16(b), deductions under section 19, income under "Salaries", interest income paid by the specified bank, gross total income, Chapter VIII deductions (sections 123, 124(3), 126, 129, 133, 153(2)(b) and others, with Note 2 listing the other sections), total taxable income, tax, rebate under section 156, surcharge, cess, tax payable, relief under section 157 and net tax payable. Each annexure carries the same declaration.
Need help with quarterly salary TDS statements?
Annexure II alone carries dozens of columns that must tie to payroll and to the employee's own declarations. If you want the quarter-end reconciliation done before the due date, speak to our TDS return filing specialists.
Key takeaways
- Form 138 is the quarterly statement for salary and a specified senior citizen's income.
- Due dates: 31 July, 31 October, 31 January and 31 May.
- Annexure I goes with every quarter; Annexure II or III only with the last (March) quarter.
- Part B shows deposits, either by challan or by book adjustment.
- Section codes 1001, 1002, 1003 and 1032 classify the payee.
Read next
- Form 140: quarterly statement of tax deducted on payments other than salary
- Form 130: certificate of tax deducted on salary
- Form 143: quarterly statement of tax collected at source
- Rule 219: quarterly statements of TDS and TCS
Disclaimer: Based on the Income-tax Rules, 2026 (G.S.R. 198(E), notified on 20 March 2026), read with the amending notifications issued up to 22 September 2026, as consulted on 2 October 2026. It explains the words of the rules and forms only; later notifications, the forms and utilities on the e-filing portal, circulars and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.