At the time of paying to the payee, the payer has to deduct TDS on certain occasions. This payment is other than payment of salary, and the payer has to file TDS return in Form 26Q. 26Q is to be submitted on a quarterly basis.
What is Form 26Q?
- Total amount paid during the quarter and TDS amount deducted on such payments have to be reported in 26Q.
- It is to be submitted for tax deduction at source for all the payments received other than the salary.
- It is submitted on a quarterly basis by the deductor and is applicable for tax deducted at source under section 200(3), 193 and 194 of the Income Tax Act of 1961.
- The income on which the tax is deducted at source includes interest on securities, dividend securities, professional fees, directors’ remuneration, etc.
- It is compulsory to furnish PAN by the deductors who are non-government deductors. For government deductors “PANNOTREQD” has to be mentioned on the form.
What are the sections covered in 26Q?
- 193 – Interest on securities
- 194 – Dividend
- 194A – Interest other than Interest on Securities
- 194B – Winnings from lotteries and crossword puzzles
- 194BB – Winnings from horse race
- 194C – Payment of contractor and subcontractor
- 194D – Insurance commission
- 194EE – Payment in respect of deposit under national savings scheme
- 194F – Payments on account of repurchase of Units by Mutual Funds or UTI 94F
- 194G – Commission, prize etc., on sale of lottery tickets
- 194H – Commission or Brokerage
- 194I(a) – Rent
- 194I(b) – Rent
- 194J – Fees for Professional or Technical Services
- 194LA – Payment of Compensation on acquisition of certain immovable property
- 194LBA – Certain income from units of a business trust
- 194DA – Payment in respect of life insurance policy
- 194LBB – Income in respect of units of investment fund
- 194IA – Payment on transfer of certain immovable property other than agricultural land 9IA
- 194LBC – Income in respect of investment in securitization trust
What are the details to be mentioned in 26Q?
As against 24Q which contains 2 annexures, Form 26Q contains only one annexure.
- Challan details (BSR code, date of payment, total amount etc.),
- details of deductor and deductees are to be mentioned.
- Along with this, if the deductor hasn’t either deducted TDS or deducted it at a lower rate, reasons are also to be mentioned in the form.
What are the due date of filing 26Q?
|April to June
|July to September
|October to December
|January to March
What are the rate of Interest?
- If TDS is not deducted – 1% per month, from due date of deduction to actual date of deduction,
- If TDS is not deposited –5% per month, from actual date of deduction to actual date of payment
What are liable penalties for late filing of 26Q?
- Late Filing Fees – under section 234E, a fine of Rs. 200 per day is to be paid until the return is filed. This amount has to be paid for each day until total fine becomes equal to the TDS amount.
- The penalty under 271H – In addition to fees to be paid under 234E, AO may charge the penalty of minimum Rs. 10,000 and maximum Rs. 1,00,000.
No penalty will be charged under 271H if –
- TDS is deposited to the government
- Late filing fees and interest (if any) is also deposited,
- Return is filed before expiry of 1 year from due date
Other points to remember
- Verify all the PAN numbers,
- Verify the challans, and try to match them through OLTAS or NSDL
- Signed Form-27A is to be filed with the TDS return
Find Your Form 26Q Here:Form_26Q