What is Form 26Q: TDS Deduction, How to Download Online and Due Dates
An employer deducts an amount from the employees’ salary. This is known as Tax Deducted at Source (TDS). Form 26Q is for filing TDS details for payments made other than salary. Here’s all the details about Form 26Q, how to download it, Sections under 26Q and due dates of Form 26Q. Read on!
What is Form 26Q?
Form 26Q is a declaration for TDS on various payments other than salary. A deductor has to report the total payment in a quarter and the amount of TDS deduction on those payments in Form 26Q. His/her Tax Deduction Account Number (TAN) is mandatory for the submission of this form.
Government deductors should specify ‘PANNOTREQD’, and non-government deductors should specify the Permanent Account Number in Form 26Q.
Sections Applicable under Form 26Q
TDS deduction will not be applicable if payments made and expenses incurred in a fiscal year are lower than the threshold limit:
| Section | Particulars | Threshold Limit |
| 206A | Providing quarterly returns concerning interest payment (except for interest on securities) to a resident without tax deduction | In case the sum payable or paid in a fiscal year is lower than:Rs. 10,000 if a deductor is a banking institution or a co-operative societyRs. 5,000 for other cases |
| 194LA | No TDS from compensation payment for immovable property acquisition (except for agricultural land) | If the sum payable or paid in a financial year (FY) is below Rs. 2.5 lakh |
| 194J | No TDS for paying directors’ remuneration, royalty, technical fees, and professional fees | If the sum payable or paid in an FY is below Rs. 30,000 |
| 194-IB | No TDS on rental payment for any building or land or both by a HUF/individual (whose accounts do not require auditing as per Section 44AB) to a resident individual | In case the rental payment is below Rs. 50,000 during a part of a particular month or a month |
| 194-IA | No TDS from consideration payment for buying an immovable property (except for agricultural land) | If the sum payable or paid in an FY is below Rs. 50 lakh |
| 194-I | No TDS from rental payment concerning plant and machinery/furniture or fittings/land and building | If the sum payable or paid in an FY is below Rs. 1.8 lakh |
| 194H | No TDS from brokerage or commission payment | If the sum payable or paid in an FY is below Rs. 15,000. Besides, there’s no tax deduction for commission payment by MTNL/BSNL to their PCO (public call office) franchisee |
| 194G | No TDS for commission payments on lottery tickets | If the sum payable or paid in an FY is below Rs. 15,000 |
| 194EE | No TDS for payments related to deposits under National Savings Scheme | If the sum payable or paid in an FY is below Rs. 2,500 |
| 194DA | No TDS from payment for a life insurance plan (with bonus) to an Indian resident | If the sum payable or paid in an FY is below Rs. 1,00,00 |
| 194D | No TDS for insurance commission payable or paid in a FY | If the sum payable or paid in an FY is below Rs. 15,000 |
| 194C | No TDS from the amount payable or paid to a contractor | If the amount payable or paid in aggregate to the contractor is below Rs. 1 lakh in a financial year If amount payable or paid through a single payment to the contractor is below Rs. 30,000 |
| 194BB | No TDS for winnings from a horse race | If sum payable or paid in an FY is below Rs. 10,000 |
| 194B | No TDS for crossword puzzles/lottery | If sum payable or paid in an FY is below Rs. 10,000 |
| 194A | No TDS for interest (except for interest on securities) | If sum payable or paid in an FY is below Rs. 5,000 |
| 194A | No TDS for interest on compensation that the Motor Accident Claims Tribunal has awarded | If sum payable or paid in an FY is below Rs. 50,000 |
| 194A | No TDS for interest on post office deposit under SCSS, 2004 | If sum payable or paid in an FY is below Rs. 10,000 |
| 194A | No TDS for time deposit interests payable by a co-operative bank or a banking institution | If sum payable or paid in an FY is below Rs. 10,000 |
| 194 | No TDS for dividend payable to a resident individual through a/c payee cheque | If sum payable or paid in an FY is below Rs. 2,500 |
| 193 | No TDS for interest payable to a resident on a 7% gold bond of 1980 or a 6.5% gold bond of 1977 | If a statement specifies that the bonds’ nominal value didn’t go beyond Rs. 10,000 in the last year |
| 193 | No TDS for interest payable to a resident individual on an 8% savings bond of 2003 | If sum payable or paid in an FY is below Rs. 10,000 |
| 193 | No TDS for interest payable through a/c payee cheque to an HUF or an individual on debentures of a company | If sum payable or paid in an FY is below Rs. 5,000 |
| 192A | No TDS for PF withdrawal | If sum payable is below Rs. 30,000 |
| 192 | No TDS from salary payments | If the income is below the following limits, then there will be no tax implications:Rs. 5 lakh in case of super senior citizens Rs. 3 lakh in case of senior citizens Rs. 2.5 lakh in case of an individual |
Procedure of Downloading Form 26Q
The Income Tax Department has classified TDS return forms into 4 categories. Here are the steps to download Form 26Q:
- Step 1: Go to the official portal of NSDL.
- Step 2: From the ‘Downloads’ section, select the ‘E-TDS/E-TCS’ option from the given drop-down menu.
- Step 3: Select ‘Quarterly Returns’ and the ‘Regular’ option.
- Step 4: You can view a new page on your screen.
- Step 5: From the ‘Form’ tab, choose Form 26Q.
Now, you can access the downloaded form in your system.
Information Required in Form 26Q
Form 26Q has a single annexure. It requires the challan details such as total amount, date of payment, and BSR code, along with the details of deductees and deductor. In case of lower TDS deduction or no TDS deduction, a deductor will have to justify the occasions.
Also Read
Due Date to File Form 26Q
Deductors must file their TDS returns within the following due dates:
| Quarter | Due Date |
| January – March | May 31 |
| October – December | January 31 |
| July – September | October 31 |
| April – June | July 31 |
Final Word
Filing TDS return through Form 26Q is compulsory for various income sources other than salary income. A taxpayer should opt for tax-saving options and file their returns accurately. Last but not least, one should be well-informed about the different sections of the IT Act.
FAQs
Ans: Yes, interest will be applicable for the non-deduction of TDS. If a deductor fails to deduct TDS, 1% interest each month will be applicable from the due date of TDS deduction to the actual date of TDS deduction.
Ans: As per Section 234E, if a taxpayer fails to file a TDS return, a fee of Rs. 200 each day will be chargeable. This sum will be payable every day until the total fee turns equivalent to the Tax Deducted at Source (TDS) amount.
Ans: Yes, a penalty as per Section 271H of the Income Tax Act, 1961, will be applicable for late filing of TDS return. This will be in addition to a fine under Section 234E. An assessing officer can levy a penalty of Rs. 1 lakh (maximum) and Rs. 10,000 (minimum).
Ans: As per Section 27IH, no penalty will be applicable in the following cases:
A taxpayer has filed a TDS return prior to the expiry of one year from the due date.
A deductor has deposited a late filing fine and applicable interest
Tax Deducted at Source has been deposited to the government
Ans: If a deductor notices a mistake or any discrepancy in Form 26Q after filing it, then he/she may submit a rectification statement. For submitting a revised TDS return, a deductor must pay the relevant fees or charges.
Disclaimer
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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