Introduction
TDS Return form is required to be filed by the individual who has deducted the TDS. At the time of payment to the payee, payer has to deduct TDS on certain transactions. Form – 26Q is a quarterly statement for tax deducted at source on all payments except salaries (as salary payments are covered in Form 24Q).
A deductor must submit his TAN (Tax Deduction Account Number) to submit the Form 26Q.
Coverage: –
- What is Tax deducted at Source?
- How to deposit TDS?
- What is the due date of payment of tds?
- Which section covered in 26Q?
- Which details are required to be mention in form 26Q?
- What is the due date of filing for 26Q?
- Revision of TDS Return form?
- Status of TDS Return form?
- Interest/Penalty and filing fee
What is tax deducted at source?
Tax Deducted at Source (TDS) is the sum of tax deducted while making payment to individual or an entity by the payer.
How to deposit TDS?
Once the deductions have been made while making the payments, it is necessary to deposit the amount so deducted to the credit of government. TDS shall be deposited by way of challan ITNS 281. It can be filled online on the website of TIN.
What is the due date of payment of tds?
In case of deposit of TDS by non-government deductors on non-salary payments:
| S.NO | PARTICULARS | DUE DATE |
| 1 | For the month of April- Feb | 7th of next month |
| 2 | For the month of March | April 30, 2020 |
In case of deposit of TDS by government deductors on non-salary payments:
| S.NO | PARTICULARS | DUE DATE |
| 1 | Without challan | Same day |
| 2 | With challan | 7th of next month |
Which 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)/(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 |
| 94IA | Payment on transfer of certain immovable property other than agricultural land 9IA |
| 194LBC | Income in respect of investment in securitization trust |
Which details are required to be mentioned in 26Q?
Form 26Q contains only one annexure (as against 24Q which contains 2 annexures). The annexure Challan details such as BSR code, date of payment, total amount, details of deductor and deductees etc.
Note: Deduction of Tax at lower rate: If the deductor hasn’t either deducted TDS or deducted it at a lower rate, reasons are also to be mentioned in the form.
How to Download Form 26Q
The following are the steps that are required to download Form 26Q.
Step 1: Visit the official website of NSDL at https://www.tin-nsdl.com/
Step 2: Click the “Downloads” tab and choose E-TDS/E-TCS from the drop down list menu
Step 3: Click “Quarterly Returns” and then choose “Regular” and you will be redirected to the new page
Step 4: Under ‘Form’, the taxpayer has to click Form 26Q to download.
Step 5: Select Form 26Q to download mentioned under section “Form”
What is the Due date of filing 26Q?
| Quarter | Quarter Period | Due Date |
| 1st Quarter | April to June | 31st July |
| 2nd Quarter | July to September | 31st Oct |
| 3rd Quarter | October to December | 31st Jan |
| 4th Quarter | January to March | 31st May |
Revision of TDS Return Form
In case any errors are noticed after the submission of the return, a correction statement can be filed by the deductor. However, the filing charges would also be required to be again paid in case a Revised Return is filed by the deductor and it can be filed multiple times to incorporate no. of changes.
TDS Return Status
TDS return status of the statement filed by the assessee can be checked online by furnishing the PAN NO and the provisional receipt no/Token no.
Interest/ Penalty/Filing Fee
Interest
- If TDS is not deducted – 1% interest is charged per month from the due date of deduction to actual date of deduction.
- If TDS is not deposited – 1.5% of interest is charged per month from the actual date of deduction to actual date of payment.
Filing Fee
As per Section 234E, for late filing, a fine of Rs. 200 per day will be charged until the return is filed. This amount has to be paid for each day subject to maximum equal to the TDS amount.
Penalty
According to Section 271H, In addition to fees to be paid under 234E, the penalty can be charged of minimum Rs. 10,000 and maximum Rs. 1,00,000.
Note : However, there is no penalty for the following cases:
- If TDS is deposited to the government.
- If late filing fee and interest are deposited.
- If the return is filed before 1 year from the due date.
Overall Glance of Form – 26Q
- Form – 26Q is based on their payments other than salary.
- This form is payable under the subsection (3) of section 200 of the Income-tax Act, 1961.
- The sections under which the form is based on, and can be used for reference to fill in the declaration form include sections 193, 194, 194A, 194BB, 194C, 194D, 194EE, 194F, 194G, 194H, 194I, 194J, 194LA etc.
- The Form must specify whether the deductor is Government or non-Government.
- It is compulsory to quote the PAN for non-Government deductors.
