Form 140 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 140 is the quarterly statement for tax deducted at source on payments other than salary, except payments to specified non-residents, which have their own form. 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.
Rule 219(1), Table, third row, requires a statement in Form 140 for deduction under sections 392(7), 393(1) (other than the Table entry 8(iii)) and 393(3), for a deductee other than the one covered by the second row (Form 144). It is delivered to the Director General of Income-tax (Systems) or the person authorised by him, under section 397(3)(b), by the due dates in rule 219(4): 31 July, 31 October, 31 January and 31 May. It has Part A, Part B and a deductee-wise annexure.
The rule and the section
Section 397(3)(b) of the Income-tax Act, 2025 provides for the quarterly statement; see section 397. The nature of each payment on which tax is deducted is set out in section 393; see the overview in section 393. Rule 219(4) gives the due date for the quarter ending on the date in column B: 30th June, 31st July of the financial year; 30th September, 31st October; 31st December, 31st January; and 31st March, 31st May of the financial year immediately following the tax year in which the deduction is required. Sub-rule (5) separately requires a challan-cum-statement in Form 141 within thirty days from the end of the month of deduction for certain payments. See our post on rule 219.
The sibling statements are Form 138 for salary, Form 143 for collection and Form 144 for non-residents.
Businesses with vendors, contractors, landlords and professionals file Form 140 four times a year; our TDS return filing team can prepare and reconcile it.
Part A: particulars of the deductor
The heading is "Quarterly statement of deduction of tax under section 397(3)(b) in respect of payments made other than salary for the quarter ended ... (June/September/December/March) ... (Tax Year)". Part A has sixteen rows:
| Rows | Particulars |
|---|---|
| 1 to 5 | Type of deductor (Government or Non-Government); name; 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 a statement was filed earlier for the quarter; if so the return receipt number of the original; for a Government deductor, the AIN of the PAO, DTO or CDDO |
| 12 to 16 | The person responsible for deduction of tax (applicable for a non-individual deductor): name, address, PAN, e-mail identity, contact number |
Part B: tax deducted and paid
Item 1 is the table of tax deducted and paid to the credit of the Central Government, with columns (A) to (K): serial number; (B) total tax (tax plus surcharge and health and education cess, Note 4); (C) total interest; (D) total fee (Note 5, fee under section 427 for late filing); (E) total penalty or others; (F) total amount deposited as per challan or adjusted through book adjustment, being (B + C + D + E) (Note 6); (G) mode of payment (Note 7: "B" for book adjustment by Government deductors, "C" for others); (H) BSR code or receipt number of Form 137; (I) date of deposit or of the transfer voucher; (J) challan serial number or DDO serial number of Form 137; (K) minor head (Note 9). Columns (H), (I) and (J) must be exactly as available on the departmental portal (Note 8). Item 2 refers to the Annexure for the amounts paid and tax deducted, and the amounts paid without deduction. The Declaration is by the person responsible for deducting tax, who certifies that all particulars are correct and complete.
The Annexure: deductee-wise break-up of TDS
The Annexure is headed "Details of amount paid/credited during the quarter ended ... and tax deducted at source". Its narrow columns print their heads broken across lines; they are rebuilt here from the column letters.
| Columns | Particulars |
|---|---|
| A to E | Serial number; challan reference number (column A of the Part B table); PAN of the deductee; name; section code (Note 15) |
| F and G | Date of payment or credit; amount paid or credited |
| H and I | Amount of cash withdrawal where the aggregate exceeds Rs. 1 Crore, as referred to in section 393(3) (persons other than co-operative societies); and where it exceeds Rs. 3 Crore (co-operative societies) |
| J to N | Total tax deducted (Note 14); whether the total tax in column J has been deposited (Yes or No); total tax deposited; rate at which tax was deducted; date of deduction |
| O to Q | Reason for non-deduction, lower deduction, higher deduction, threshold or transporter (Notes 1 to 13); certificate number of any certificate under section 395 for non-deduction or lower deduction; unique identification number of the Form 121 submitted by the deductee |
| R to Y | Two blocks of four columns (amount of tax deposited, BSR code of the bank, date of payment, challan serial number) for payments covered in section 393(1) and |
| Z to AG | Two blocks of four columns of the same kind for payments covered in section 393(3) and |
The Annexure ends with the same Declaration.
Reason codes (Notes 1 to 13)
| Code | Reason as printed |
|---|---|
| A | Lower or no deduction on account of a certificate under section 395(1) |
| B | No deduction on account of a declaration under section 393(6) |
| C | Deduction at a higher rate under section 397(2) on account of non-furnishing of PAN |
| D | No deduction or lower deduction on account of a notification for a person or class of persons under section 400(1) or the corresponding provision of the earlier Act as the print names it |
| E | No deduction on account of payment to persons referred to in the Board circulars named in the form (their content is not in the text consulted) |
| N | No deduction on account of payment to a person referred to in section 393(4) , or a notification under the corresponding provision of the earlier Act as the print names it |
| O | No deduction as per section 393(4) |
| P | No deduction on dividend paid to a business trust under section 393(4) , or on a notification under serial number 10(e) |
| Q | No deduction on payment to an entity under section 393(4) |
| S | No deduction in view of tax deductible or collectible under another provision with respect to a transaction under section 393(1) |
| T | No deduction because the payee is a transporter (PAN of the payee mandatory under section 393(4) ) |
| Y | No deduction on payment below the threshold limit specified in the Act |
| Z | No deduction or lower deduction in view of a notification under section 400(1) |
Section codes (Note 15)
Note 15 gives a table of section, nature of payment, payer and a four-digit section code. In groups:
| Codes | Nature of payment |
|---|---|
| 1004 | Payment of accumulated balance due to an employee (section 392(7)) |
| 1005 to 1006 | Commission or brokerage (insurance; others) |
| 1008 to 1012 | Rent (machinery; other); payment under the agreement referred to in the table; compensation on acquisition of certain immovable property |
| 1013 to 1018 | Income from units of a specified mutual fund; business trust income (interest, dividend, renting); income from an investment fund; income from a securitisation trust |
| 1019 to 1022 | Interest on securities; interest other than on securities (banks, co-operative banks and post office, for senior citizens and others; specified persons) |
| 1023 to 1028 | Sums for carrying out work under a contract (individual or HUF; others); fees for technical services, certain royalty and call centres; fees for professional services; remuneration to a director |
| 1029 to 1038 | Dividends; life insurance sums; purchase of goods; benefit or perquisite from business or profession; e-commerce; transfer of a virtual digital asset |
| 1058 to 1067 | Winnings from lottery, game or betting; online games; horse races; lottery ticket commission; cash payments by banks, co-operative societies and post offices; the amount referred to in the printed provision of the earlier Act; payment to a partner of a firm |
The detailed rows (for example the code for each payer type) are in the print; codes in the 1000 range not listed above are not used in Note 15.
A short example
Eastgate Builders Pvt Ltd deducts tax during the quarter ended 30th June on contractor payments and professional fees. It files Form 140 by 31 July: Part A with its details, Part B with the challan totals, and the Annexure with one row per deductee, using the section code for the contract or fees, the date of payment, the amount, the tax deducted and the challan reference. For one vendor with a lower deduction certificate it writes "A" in column O and quotes the certificate number in column P. All names are invented.
Need help with quarterly TDS statements?
Section codes, reason codes and challan references all have to agree line by line with your ledger. If you want a review of a statement before it is delivered, speak to our TDS return filing specialists.
Key takeaways
- Form 140 covers non-salary deduction other than the cases for Form 144 (non-residents).
- Due dates: 31 July, 31 October, 31 January and 31 May.
- The Annexure has one row per deductee and challan; reason codes A to Z explain no or lower deduction.
- Note 15 gives the four-digit section codes from 1004 to 1067.
- Certificates under section 395 and Form 121 declarations are referenced by number in columns P and Q.
Read next
- Form 138: quarterly statement of tax deducted on salary
- Form 141: challan-cum-statement for rent, property, contractor and virtual digital asset
- Form 144: quarterly statement of tax deducted on payments to non-residents
- Form 121: declaration for receipt of income without deduction of tax
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.