Form 26Q: TDS Return Filing for Non Salary Deductions

Filing Form 26Q is a crucial obligation for any payer who deducts Tax Deducted at Source (TDS) on payments other than salary. This quarterly return provides the Income Tax Department with essential information about various payments, ensuring transparency and compliance with tax regulations. Understanding how to accurately file Form 26Q is vital to avoid penalties and interest for late filing.

Total amount paid during the quarter and TDS amount deducted on such payments have to be reported in 26Q.In this article, we will discuss about the following:

• Overview of Sections in Form 26Q
• Mandatory Fields in Form 26Q
• Interest for Delayed TDS Deduction or Deposit
• Penalties for late filing
• Important points
• FAQs

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
• 194DA – Maturity of life insurance policy
• 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
• 194K – Income in respect of units
• 194LA – Payment of Compensation on acquisition of certain immovable property
• 194LBA – Certain income from units of a business trust
• 194LBB – Income in respect of units of investment fund
• 194LBC – Income in respect of investment in securitization trust
• 194N – Payment of certain amounts in cash
• 194O – Payment of certain sums by e-commerce operator to e-commerce participant
• 194Q – TDS on purchase of goods
• 194R – TDS on benefit or perquisite in respect of business or profession
• 194S – TDS on transfer of Virtual Digital Assets 
• 197A – Details of payment where there is no deduction of tax in certain cases

Details to be Filled 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.

Due Date of Filing 26Q

The due date of filing form 26Q is as follows:

Interest for Late Deduction or Late Deposit

If TDS is not deducted – 1% per month, from due date of deduction to actual date of deduction

If TDS is deducted but not deposited – 1.5% per month, from actual date of deduction to actual date of payment

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

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