A taxpayer pays taxes on every kind of income. Form 26Q is a type of TDS (Tax Deducted at Source) return form used in India. It is specifically used for reporting TDS deductions made on payments other than salaries. Form 26Q is filed by the deductor, who is the person responsible for deducting TDS, to provide information about the TDS deductions made from various payments made to residents. The primary purpose of Form 26Q is to report TDS deductions on payments such as rent, professional fees, commission, interest, and other non-salary payments made to residents.
26Q TDS Return Meaning
The Form 26Q is applicable for the TDS under Section 200(3) of the Income Tax Act under Sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194F, and more. This is the statement for the TDS on all payments except for the salary.
A deductor will have to submit his TAN to submit this form. The non-government deductors need to quote the PAN, whereas the government deductors will have to quote “PANNOTREQD” on Form 26Q.
What are the Sections Under Form 26Q?
Under 200(3) of the Income Tax Act, 1961, form 26Q is applicable for the TDS for all of the payments except for the salary. The sections under this law give the details of when the TDS and the amount limit under which it is not applicable.
Section 192 | If the net taxable income is lesser than the maximum amount that is not chargeable to tax: a) Rs. 2,50,000 for individuals b) Rs. 3,00,000 for Senior Citizens. c) Rs. 5,00,000 for Super Senior Citizens. There is no TDS at source from salaries. |
Section 192A | Suppose the amount that is paid is less than Rs. 30,000. There is no TDS from the payment of the PF account of an employee. |
Section 193 | If there is an amount paid or payable during the financial year and it is less than five thousand rupees. There is no TDS from the interest paid on the debentures issued by the company in which the public is substantially interested. Provident interest is paid by the account payee cheque to the resident individual. |
Section 193 | If the amount is paid or it is payable during the financial year, it is less than Rs. 10,000. There is no TDS from the interest of 8% savings paid to the residents. |
Section 193 | If there is a declaration made that the nominal value of such bonds is not more than ten thousand at any time during the previous year. |
Section 194 | If the amount that is paid or payable during the financial year is lesser than Rs. 2,500. |
Section 194A | If the amount that is paid or is payable during the financial year is less than Rs. 10,000. |
Section 194A | If the amount that is paid or is payable during the financial years is less than Rs. 10,000. |
Section 194A | When the amount that is paid or is payable during the financial year is less than Rs. 5,000. |
Section 194A | If the amount that is paid or is payable during the financial year is less than Rs. 50,000. |
Section 194B | If the amount that is paid or is payable during the financial year is less than Rs. 10,000. |
Section 194BB | When the amount that is paid or is payable during the financial year is less than Rs. 10,000. |
Section 194C | Suppose the sum that is paid or is payable to the contractor in a single payment is less than Rs. 30,000. Also, when the sum paid or payable to a contractor in aggregate is less than Rs. 1,00,000 during the financial year. |
Section 194D | When the amount that is paid or is payable during the financial year is lesser than Rs. 15,000. |
Section 194DA | When the amount that is paid or is payable during the financial year is less than Rs. 1 lakh. |
Section 194EE | If the amount paid or payable in the financial year is less than Rs. 2,500. |
Section 194G | When the amount that is paid or payable during the financial year is lesser than Rs. 15,000. |
Section 194H | When the amount that is paid or payable during the financial year is less than Rs. 15,000, also, there is no tax that is being deducted from the commission that is payable. |
Section 194-I | When the amount that is paid or is payable during the financial year is lesser than Rs. 1,80,000. |
Section 194-IA | When the amount that is paid or is payable during the financial year is lesser than Rs. 50 lakhs. |
Section 194-IB | When the amount of the rent is lesser than Rs. 50,000 for a month or a part of a month. |
Section 194J | When the amount that is paid or is payable during the financial year is lesser than Rs. 30,000. |
Section 194LA | When the amount paid or payable during the financial year is lesser than Rs. 2.5 lakhs. |
Section 206A | When the amount that is paid or is even payable during the financial year is lesser than:
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Details to be filled in the form 26Q
Form 26Q only contains one annexure where the details are to be filled. These details are as follows:
Challan details
- The serial number of the challan
- TDS amount
- Surcharge amount
- BSR Code
- Education cess amount
- Amount of interest
- The total tax deposit
- The number of demand drafts or the cheque (if applicable)
- The collection code
- The tax deposit date
- Method of TDS deposition
Payer Details
- Name
- Address
- PAN Number
- Contact details
Payee Details
- Name of the payee
- Email ID
- Full Address
- Contact number
- PAN Number
- Telephone number
Due Date of Filing the Form 26Q
All taxpayers are supposed to file the TDS return with form 26Q promptly and regularly. The form 26Q is filed quarterly, and the last dates for doing that are as follows:
- Quarter 1 31st July
- Quarter 2 31st Oct
- Quarter 3 31st Jan
- Quarter 4 31st May
While making the payment, the payer must deduct the TDS amount according to the applicable rate. This deducted amount should be deposited to the credit of the government exchequer through the challan ITNS 281 on time. It can also be filed online on the website of TIN. If the deduction and deposition process is not done on time, the penalty is levied, as mentioned below.
Also, if the TDS is deducted at a lower rate, then the payee needs to get a lower deduction certificate as per section 197 of the Income Tax Act, 1961. Suppose the payee obtains the certificate of lower deduction. In that case, the TDS is deducted according to the rate mentioned in the certificate, which will be reflected in the filing of the TDS via Form 26Q.
Late filing fees
If Form 26Q is not filed according to the due dates mentioned above, the taxpayer is liable to pay some penalties depending on the amount and how late the returns are filed. According to Section 234E, if form 26Q is not filed by the due date, a late filing fee of Rs. 200 per day is charged until the penalty becomes equal to the TDS amount.
Non-filing penalty
Similarly, if Form 26Q is not filed with in one year from due date and wrong filed then the penalty for such failure is minimun Rs. 10,000 but not more then Rs. 1,00,000 according to section 271H.
If the following conditions are met, no penalty will be levied under section 271H:
- The TDS is deposited to the government.
- The interest and penalty for late filing have also been deposited.
- The return has been filed before completion of 1 year from the due date.
Interest charged on late deduction and deposition
On top of that, the government may also charge interest for non-deduction and non-deposition of TDS returns. If the TDS is not deducted on time, then an interest of 1% per month or part of month is charged on the days spent between the due date of deduction and the actual date of the TDS deduction.
If the TDS is not deposited on time, then an interest of 1.5% per month or part of month is levied on the period spent between the actual date of deduction and the actual date of deposition.
How to Download Form 26Q?
- Step 1:Go to https://www.tin-nsdl.com/, where NSDL’s official website can be found.
- Step 2: Select E-TDS/E-TCS from the drop-down list by clicking the “Downloads” tab.
- Step 3: Select “Regular” after clicking “Quarterly Returns.”
- Step 4: A new page will be directed to you.
- Step 5: From the “Form” area, choose Form 26Q to download.
FAQs
How can I add challan?
You can add a new challan by filing a request for correction in traces and filing the required information to file a correction statement. Then, in a type of correction, selection challan correction, add challan.
How can I map multiple deduction entries with challan?
You can map multiple entries with one challan by enabling the option of “ allowing linking deduction and challan of multiple sections.” in TDS general settings.