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At the time of paying to the payee, the payer has to deduct TDS on certain occasions. This payment is other than payment of salary, and the payer has to file TDS return in Form 26Q. 26Q is to be submitted on a quarterly basis.

Total amount paid during the quarter and TDS amount deducted on such payments have to be reported in 26Q.

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) – Rent
  • 194I(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
  • 194IA – Payment on transfer of certain immovable property other than agricultural land 9IA
  • 194LBC – Income in respect of investment in securitization trust

Details to be mentioned 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

Quarter Due Date
April to June 31st July
July to September 31st Oct
October to December 31st Jan
January to March 31st May

Rate of Interest

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

If TDS is 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

Remember these points

  • 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
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