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Form 26Q: TDS Return Filing for Non Salary Deductions

By CA Mohammed S Chokhawala

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Updated on: Apr 29th, 2025

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2 min read

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 crucial to avoid penalties and interest for late filing.

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

TDS Sections Covered in 26Q

SectionNature Of Payment
193Interest on securities
194Dividend
194AInterest other than Interest on Securities
194BWinnings from lotteries and crossword puzzles
194BBWinnings from horse race
194CPayment to contractors and subcontractors
194DInsurance commission
194DAMaturity of life insurance policy
194EEPayment in respect of deposit under National Savings Scheme
194FPayments on account of repurchase of units by Mutual Funds or UTI
194GCommission, prize, etc., on sale of lottery tickets
194HCommission or Brokerage
194I(a)Rent (for machinery or plant)
194I(b)Rent (for land or building)
194JFees for Professional or Technical Services
194LAPayment of Compensation on acquisition of certain immovable property
194LBACertain income from units of a business trust
194DAPayment in respect of life insurance policy
192APayment of accumulated balance due to an employee from the
trustees of the Employees’ Provident Fund Scheme, 1952
194LBBIncome in respect of units of an investment fund
194IAPayment on transfer of certain immovable property other than
agricultural land (where the buyer is TAN holder)
194LBCIncome in respect of investment in securitization trust
194NPayment of certain amounts in cash
194OPayment of certain sums by e-commerce operator to e-commerce participant
194QTDS on purchase of goods
194RTDS on benefit or perquisite in respect of business or profession
194STDS on transfer of Virtual Digital Assets
197ADetails of payment where there is no deduction of tax in certain cases

Details to be Filled in 26Q

As against 24Q which contains 3 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.

Form 26Q: TDS Return Filing for Non Salary Deductions

Due Date of Filing 26Q

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

QuarterDue Date
April to June31st July
July to September31st Oct
October to December31st Jan
January to March31st May

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

If TDS is not deducted or deposited, the expense will be disallowed for computing taxable income:

  • For Payments made in India: If TDS is required but not deducted, 30% of the expense amount will be disallowed when computing taxable income.
  • For Payments made outside Indian: The entire amount of the expense on which TDS was required but not deducted will be disallowed.

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.

Failure to remit TDS to the government's credit within the prescribed timeframe can result in rigorous imprisonment ranging from 3 months to 7 years, along with a fine.

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
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Frequently Asked Questions

Can I file Form 26Q seperatley for contractors, professionals, interest, etc.?

No. A single Form No. 26Q with separate annexures corresponding to each challan payment for each type of payment has to be filed for all payments made to residents.

By whom should the control chart Form 27A be signed?

Form 27A is the summary of the TDS/TCS statement. It has to be signed by the respective authorized person who is designated to sign the same.

What are the Details to be Filled in 26Q?

As against 24Q which contains 3 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.

Can I file Form 26Q for Nil TDS returns?

Yes, if no TDS was deducted but payments were made, a Nil TDS return can be filed to comply with tax regulations. However, if no transactions were made in a quarter, filing is not mandatory, but submitting a declaration may be required in some cases.

Can multiple challans be used in a single Form 26Q return?

Yes, multiple challans can be used in a single Form 26Q for different types of payments. The challan details must be correctly mapped to the deductee details.

How do I handle TDS deducted but wrongly deposited under the wrong section?

If TDS is deposited under the wrong section (e.g., 194J instead of 194I): File a correction return in TRACES to update the section using the consolidated file.

About the Author

I'm a chartered accountant, well-versed in the ins and outs of income tax, GST, and keeping the books balanced. Numbers are my thing, I can sift through financial statements and tax codes with the best of them. But there's another side to me – a side that thrives on words, not figures. Read more

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