As per the Indian Taxation Code, TDS or tax deducted at source is applicable to an individual’s or organisation’s income. TDS is deducted from the entity's earnings before it is credited to its account. CBDT or the Central Board of Direct Taxes, controls and governs the decisions regarding the rules and regulations of TDS.
Individuals or organisations must fill out TDS forms as per their eligibility for each financial year. Continue reading to know about form 26QE and form 26Q of the Income Tax Act of 1961.
Form 26Q is an ITR (income tax return) form that is used to declare TDS (Tax Deducted at Source) on all payments made except salaries. The tax deducted at source under Sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194F, 194G, 194H, 194I, and 194J of the Income Tax Act of 1961, are to be filed by the depositor by submitting Form 26Q.
Here are the steps to follow for form 26Q download:
Note: If you want to download form 26QE, follow the same steps but choose form number 26QE.
Form 26Q is used for the following purposes:
Here are the steps to file TDS return form 26Q:
Step 1: Login to e-filing portal using your TAN and password.
Step 2: Click on 'e-file>Income Tax Forms > File Income Tax Forms.
Step 3: Click on 'File Now' for filing of Quarterly TDS Return.
Step 4: Click on 'Let's get started'.
Step 5: Select the Form type, Financial Year, Quarter and Upload type. Attach the Zip file and proceed for E-verification.
Step 6: Click ‘Yes’ for confirming for E-verification.
Step 7: Complete the e-verification and submit the form using any method which is available.
Note: You can find the required section codes in the table below the form.
Form 26Q includes four sections and an annexure.
Part 3:
Part 4:
You need to file form 26QE to file TDS applicable under Section 194S of the Income Tax Act which deals with the taxability of Virtual Digital Assets (VDAs). Under this section, any Indian resident transferring cryptocurrency or any other virtual digital asset like NFTs is eligible for a TDS deduction of 1%.
You can download Form 26QE on the Income Tax portal by following the exact steps mentioned above. All you have to do is choose form 26QE while downloading.
Form 26QE acts as a challan-cum-statement of TDS as per Section 194S. Issued to crypto users by the Income Tax Department of India, this form serves as a receipt or statement for the TDS deducted. The due date to furnish Form 26QE is within 30 days from the last day of the month during which the TDS was deducted.
In terms of usefulness, this form serves the dual purpose of acting as a statement for crypto transactions as well as a challan for both the deductor and the deductee.
Here are the steps to follow while filing Form 26QE:
Step 1: Login to the income tax e-filing portal.
Step 2: Select the “e-Pay Tax” option from the e-file option.
Step 3: Click on New Payment.
Step 4: Find Form 26QD from the options and click on ‘Proceed’.
Step 5: You must fill in all required details in the given form. The following details need to be filled out in Form 26QD:
Step 6: Click on ‘Submit’ to file Form 26QD.
Step 7: Click on ‘Continue’ after filing all the details.
Step 8: Select the mode of payment from the given options, such as net banking, debit card, pay at bank counter, RTGS/NEFT and payment gateway including UPI and credit card.
Step 9: Click on ‘Continue’ after selecting the payment mode.
Step 10: Select the option ‘Pay Now’ you will be redirected to the payment gateway of the mode of payment that you selected.
Step 11: After making the payment, you will be redirected to the e-filing portal. From there, you can download the challan-cum-return statement.
As mentioned earlier, Form 26QE is a challan-cum statement of the tax deducted at source under Section 194S. This form contains the details of deductee, deductor, and VDA transactions as well.
Final Word
Now that you know how to download and file form 26Q, you can deposit TDS accordingly. Moreover, if you are conducting transactions of any kind related to VDA, you need to file form 26QE for TDS returns.
Indian Taxation Code enforces TDS for income. Form 26Q for TDS on payments excluding salaries, Sections 193, 194, 194A, etc. Form 26QE for TDS on Virtual Digital Assets (VDAs). CBDT governs TDS rules. Steps for downloading and filing each form explained. 26Q and 26QE usage detailed. Different sections and requirements for each form, including filing procedures, annexures, and sample downloads.