Tax Deductor has the liability to make tax deductions and file the TDS return form. There are mainly two different types of TDS returns and forms that need to be filed within the due date. Form 24Q is for salary return and Form 26Q is for non-salary return. Hereunder this article, we will discuss form 26Q which is TDS Return on Non-Salary Payment.
What is Form 26Q TDS Return?
Form 26Q is a quarterly statement of deduction of tax under section 200 (3) of the Act. This form is filed in respect of non-salary payments e.g. TDS on interest, TDS on contract, TDS on professional fees, etc. for the respective quarter ended. It is required to submit and report the total amount paid during the quarter and the TDS amount deducted on such payments.
Section Code for TDS deduction covered in 26Q
- Section 193- Interest in Securities
- Section 194- Dividend
- Section 194A- Interest Other than Interest in Securities
- Section 194B- Winning From Lotteries and Crossword Puzzles
- Section 194BB- Winning From Horse Race
- Section 194C- Payment of Contractor and Sub-contractor
- Section 194D- Insurance Commission
- Section 194DA- Maturity of Life Insurance Policy
- Section 194EE-Payment in respect of deposit under national saving scheme
- Section 194F– Payment on account of repurchse of units of mutual funds or UTI 94F
- Section 194G- Commission, prize etc. on sale of lottery tickets
- Section 194H- Commission or Brokerage
- Section 194I(a)- Rent
- Section 194I(b)- Rent
- Section 194J- Fee For Professional and Technical Services
- Section 194K- Income in respect of units
- Section 194LA- Payment of compensation on acquisition of certain immovable property
- Section 194LBA- Certain income from units of business trust
- Section 194LBB- Income in respect of units of investment funds
- Section 194LBC- Income in respect of Investment in securitization trust
- Section 194N- Payment of certain amount in cash
- Section 194O- Payment of certain sums by e-commerce operator to e-commerce participants
- Section 197A- Details of payment where there is no deduction of tax in certain cases.
What details Form 26Q to contain?
It contains details in only one annexure, which contains details of challan, deductor, and deducted.
Annexure
It contains the details of the deductor and deductee-wise breakup of TDS against each particulars challan.
Details of challan in annexure
- BSR Code of bank branch.
- Date of deposit of challan.
- Challan serial number.
- Total amount in challan.
- TDS amount to be allocated among dedcutees.
- Interest amount to be allocated among dedcutees.
Details of dedcutee in annexure
- PAN of the dedcutees.
- Name of the dedcutees.
- TDS section code.
- Date of payment/credit.
- Amount paid or credited.
- TDS amount.
- Education cess.
Note- If the employer doesn’t deduct TDS or deducts TDS at a lower rate, he will have to provide the reasons for such non-deduction or lower deduction.
Also Read-
What are the due dates of form 26Q TDS Return?
| Quarter | Month | Due Date |
|---|---|---|
| 1st Quarter | April-June | 31st July |
| 2nd Quarter | July-September | 31st October |
| 3rd Quarter | October-December | 31st January |
| 4th Quarter | January-March | 31st May |
Form 26Q Format
Fees/Interest/Penalties of form 24Q TDS Return
Non Deduction of TDS (either in whole or in part)- If tax is required to be deducted and not deducted by the deductor then the interest rate is 1% per month (12% per annum) from the date on which tax was deductible to the date on which it is actually deducted.
Non-payment of TDS (either in whole or in part)- If tax is deducted but not paid by the deductor then the interest rate is 1.5% per month (18% per annum) from the date on which TDS is required to be deducted till the date of actual payment of TDS.
A person who fails to file a TDS return on or before the due date as prescribed then he shall be liable to pay a sum of late fees as prescribes under section 234E and/or he may also be liable to pay a penalty as prescribed under section 271H.
Late filing fees- As per section 234E, where a person fails to file a TDS return on or before the due date then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues.
Note:- The amount of late fee will be subject to the maximum amount of TDS.
Penalty under section 271H- Under Income Tax Act, 1961 section 271H prescribes a penalty for two types of default. one is for a person who fails to furnish the TDS return within the prescribed time and the second one is for the person who furnishes incorrect information while filling the TDS return.
As per section 271H, The defaulter would be liable to pay a minimum penalty of Rs. 10,000, however, the maximum amount of this penalty may be extended to Rs. 1,00,000.
Note:- This penalty is in addition to the penalty under section 234E.
Frequently Asked Questions- FAQs
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What is form 26Q in Income Tax?
Form 26Q is a quarterly statement of deduction of tax under section 200 (3) of the Act. This form is filed in respect of non-salary payments e.g. TDS on interest, TDS on contract, TDS on professional fees, etc. for the respective quarter ended. It is required to submit and report the total amount paid during the quarter and the TDS amount deducted on such payments.
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What is form 24Q and 26Q?
Tax Deductor has the liability to make tax deductions and file the TDS return form. There are mainly two different types of TDS returns and forms that need to be filed within the due date. form 24Q is for salary return and Form 26Q is for non-salary return.
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Who needs to file Form 26Q?
This form is filed in respect of non-salary payments e.g. TDS on interest, TDS on contract, TDS on professional fees, etc. for the respective quarter ended. It is required to submit and report the total amount paid during the quarter and the TDS amount deducted on such payments.
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What is Form Number 24Q?
When an employer pays a salary to an employee, the employer is required to deduct TDS u/s 192. The employer has to file a salary TDS return in form 24Q, which needs to be submitted quarterly. Details of salary paid and TDS deducted on such salary payment needs to be submitted in 24Q form.
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)