When it comes to filing of income tax return, there come various forms that are expected to be filled and submitted by the taxpayer based on his category like Individual, Business Return, GST etc. Let’s get to know more about one such document – ‘Form 26Q’.
The declarations of payments that are made by the Payer to the Payee other than salary are supposed to file TDS return in Form 26Q. All the TDS deduction details will be furnished by the Payer or Deductor in this form and submit to the Income Tax Department on a quarterly basis.
To prevent tax evasion, a certain amount of tax is deducted against certain income earned by the payer. These incomes can also be on accrual basis. Here the person who is responsible to make payments on such income is supposed to deduct the tax as per the tax rate before the actual payment is made to the payer. The TDS thus deducted will be deposited to the Government, and a TDS return gets filed before the due date.
Form 26Q is applicable for TDS as per Section 200 sub-section (3) of Income Tax Act, 1961 which is a TDS statement for all non-salary payments submitted by the Deductor along with his TAN number. TAN number is required to make TDS deductions towards specific payments made by the companies, partnership firms or those who come under tax audit etc.
The Government deductors need not declare PAN on Form 26Q whereas Non-Government deductors should declare their respective PAN number.
All the payments paid in a specific quarter along with TDS amount deducted and the person to whom payment is made will be furnished in the Form 26Q for that respective quarter.
There are various types of income, and few are mentioned below:
Form 26Q is divided into 4 categories as approved by the Income Tax Department and here is the process below to download Form 26Q.
Step 1: Open the NSDL website. (1)
Step 2: Select “Downloads” to choose “e-TDS/e-TCS option.
Step 3: Now select “Quarterly Returns” and choose “Regular” option.
Step 4: A new page opens and select “Form 26Q” to download and proceed further.
There are different types of payments made which would be identified with a unique Section number as per the Income Tax Department. Form 26Q can be submitted against many payments made where TDS is deducted while making payment by the Deductor. In short Form, 26Q is for filing the TDS return that has all the payment details along with TDS deducted for that quarter by the Deductor.
Here are few sections that are covered in Form 26Q.
|Section||Type of Payments|
|193||Interest on securities|
|194A||Interest other than Interest on Securities|
|194B||Winnings from lotteries, crossword puzzles etc.,|
|194BB||Winnings through horse race|
|194C||Contractor and Sub-Contractor payments|
|194D||Commission from Insurance|
|194E||Non-Resident Sportsman/Sports Association payments|
|194EE||National Savings Scheme payments|
|194F||Payments towards repurchase of Units by Mutual Funds along with UTI 94F|
|194G||194G – Commission, prize etc., received on sale of lottery tickets|
|194H||194H – Brokerage / Commission|
|194J||Fees paid towards Professional/Technical Services|
|194LA||Payment through Compensation on acquiring certain immovable property|
|194LBA||Income earned from Business Trust units|
|194DA||Life Insurance Policy payments|
|194LBB||Income towards investment fund|
|194IA||Payment on transfer of immovable property other than agricultural land 9IA|
|194LBC||Income through Investment in securitisation trust|
Form 26Q has one Annexure where one must mention the Challan details like BSR Code, Payment Date, Amount, Deductor and Deductee details.
The TDS return can be directly furnished on the NSDL website online along with the Digital Signature. Once the return is accepted and filed, a provisional receipt that has ‘token number’ is issued that acts as an acknowledgement to the taxpayer. In case of any discrepancies, a ‘non-acceptance memo’ is issued stating the reason for not accepting the return.
Let us look at the charges as below for submitting the TDS return.
|Deductee Records Number||Charges (excl service tax)|
|Returns upto 100 records||31.15/-|
|Returns between 101 – 1000 records||178/-|
|Returns of more than 1000 records||578.50/-|
As per Section 206, its mandatory for the below assesses to e-file the TDS return. All other assesses can submit their return either physically or through online mode.
The due date to file TDS online and physical return is as follows:
|Quarter||Due Dates for Form 24Q & Form 26Q|
|April to June||31st July|
|July to September||31st October|
|October to December||31st January|
|January to March||31st May|
The Assessee is expected to file the TDS return as per Section 234E before the due date, or else he is liable to pay a penalty of Rs. 200 per day along with interest till the return is filed within one year.
But it must be noted that the penalty of Rs. 200 per day shouldn’t exceed the TDS deducted in the return. In addition to this, it shouldn’t be less than Rs. 10,000 and not more than Rs. 1,00,000.
An assessee can revise his return in case it’s incorrectly e-filed along with the charges mentioned above towards the revised return.
A. Form 26Q – A quarterly statement of TDS against all payments made other than ‘salaries.’
Form 24Q – A quarterly statement of TDS from ‘salaries.’
Form 27EQ – It’s a quarterly statement of tax collected at source
A. As prescribed by the Income Tax Department, CBDT these forms are similar for electronic and physical return. However, e-TDS/e-TCS return has to be prepared by the file format as per ITD.
A. No. One challan for each quarter needs to be filed, and there is no option to file for multiple quarters against one challan number.
A. Yes, a challan can be imported through excel file along with the tax deduction details.
A. A free Return Preparation Utility (RPU) is available on NSDL website to prepare e-TDS/e-TCS statements or get the software from various third-party vendors.
There is a list that is made available of such vendors on https://www.tin-nsdl.com/ website.
A. The branch of a bank issues the Bank Challan Number where the TDS is deposited along with a Receipt Number for every challan.
A. PAN number is mandatory for all Non-Government Deductors. Also, PAN of all Deductee’ s needs to be mentioned accordingly.
A. Form 26Q is a statement other than salaries whereas Form 24Q is the TDS statement applicable for salaries.
We are now clear that a Deductor files the TDS return through Form 26Q on a quarterly basis within the due date for all non-salary payments. In case of non-filing, a penalty along with Interest is levied as per the Income Tax Department. The CBDT has made available a free Return Preparation Utility (RPU) on the NSDL website for the filers. Also, there are other software download options from third-party vendors.
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