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
- 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
- 197A – Details of payment where there is no deduction of tax in certain cases
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
|April to June||31st July|
|July to September||31st Oct|
|October to December||31st Jan|
|January to March||31st May|
The due date to file TDS return in form 26Q for Q1 and Q2 of FY 2020-21 stands extended to 31 March 2021.
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.The interest is 0.75% in the case of due dates falling between 20 March 2020 and 29 June 2020. If the sum remains unpaid after 30 June, the normal interest of 1.5% is chargeable
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