Introduction:

When remitting payment to the payee, the payer is required to withhold TDS on specific occasions, excluding salary disbursements. Additionally, the payer must file a TDS return using Form 26Q, which is submitted on a quarterly basis.

The total contribution for the entire quarter, along with the corresponding TDS deduction, should be recorded in Form 26Q.

Form 26Q:

Form 26Q serves as a declaration for TDS on diverse payments, excluding salaries. It necessitates that the deductor furnish details regarding the aggregate payment made in a quarter and the corresponding TDS deductions. Submission of this form mandates the inclusion of the deductor’s Tax Deduction Account Number (TAN).

Government deductibles are required to indicate ‘PANNOTREQD’, while non-government deductibles must indicate their permanent account number to fill up Form 26 Q.

Details  Mentioned in Form 26Q:

• Form 26 Q is required to include various details of tax deduction (TDS) at source. Important information to be submitted in Form 26Q includes:
• It encompasses details such as the deductee’s name, address, PAN (Permanent Account Number), and the nature of the payment rendered.
• This section contains the deductibles, including their name, address, and TAN (Tax Deduction and Accumulation Account Number).
• TDS payment details, such as BSR code of the bank branch, deposit date and Challan Identification Number (CIN) are included.
• Details of TDS deduction, including amount and date of deduction are provided.

Sections Covered under Form 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
• 194G – Commission, prize etc., on sale of lottery tickets
• 194H – Commission or Brokerage
• 194J – Fees for Professional or Technical Services
• 194LA – Payment of Compensation on acquisition of certain immovable property
• 194LBB – Income in respect of units of investment fund
• 194N – Payment of certain amounts in cash
• 197A – Details of payment where there is no deduction of tax in certain cases

Due Dates:

April to June – 31st July

July to September – 31st October

October to December – 31st January

January to March – 31st May

Steps to Download Form 26Q:

• To obtain Form 26 Q, simply follow these steps:
• Visit the government income tax e-filing portal at https://www.incometaxindiaefiling.gov.in/.
• Sign in to your account using your user ID and password.
• Once logged in, go to the “TDS” tab.
• In the “TDS” tab, select “Form 26Q” from the dropdown menu.
• Select the assessment year for which you want to download Form 26Q.
• Click on the relevant Form 26Q link to download the form in PDF or Excel format.

Penalties for late filing:

• Late filing fee – As per section 234E, penalty of Rs. 200 per day until the return is filed. This amount is accumulated on a daily basis till the total penalty becomes the amount of TDS.
• Penalty under section 271H – In addition to the fees payable under section 234E, the Assessing Officer (AO) may impose a penalty ranging from a minimum of Rs. 10,000 to a maximum of Rs. 1,00,000.
• No penalty shall be levied under section 271H if: TDS is duly remitted to the government. The cost of late filing and any interest duly deposited, . The return is filed no later than one year from the due date.

Conclusion:

It is compulsory to file TDS returns through Form 26 Q for various amounts other than salary. Taxpayers should find ways to save tax and ensure accurate tax returns. Finally, it is important that you are familiar with the different aspects of the ICT Act.