Here, we report the synthesis and characterization of sulphur-substituted iron telluride i.e. FeTe1-xSx; (x = 0-30 %) system and study the impact of low temperature oxygen (O2) annealing as well. Rietveld analysis of room temperature x-ray diffraction (XRD) patterns shows that all the compounds are crystallized in a tetragonal structure (space group P4/nmm) and no secondary phases are observed. Lattice constants are decreased with increasing S concentration. The parent compound of the system i.e. FeTe does not exhibit superconductivity but shows an anomaly in the resistivity measurement at around 78 K, which corresponds to a structural phase transition. Heat capacity Cp(T) measurement also confirms the structural phase transition of FeTe compound. Superconductivity appears by S substitution; the onset of superconducting transition temperature is about 8 K for FeTe0.75S0.25 sample. Thermoelectric power measurements S(T) also shows the superconducting transition at around 7 K for FeTe0.75S0.25 sample. The upper critical fields Hc2(10%), Hc2(50%) and Hc2(90%) are estimated to be 400, 650 and 900 kOe respectively at 0 K by applying Ginzburg Landau (GL) equation. Interestingly, superconducting volume fraction is increased with low temperature (200 oC) O2 annealing at normal pressure. Detailed investigations related to structural (XRD), transport [S(T), R(T)H], magnetization (AC and DC susceptibility) and thermal [Cp(T)] measurements for FeTe1-xS:O2 system are presented and discussed.