Income tax

What is Form 26Q? And How to Download Form 26Q?

Everything you need to know on TDS Return Form 26Q

Introduction

On certain occasions, the payer is required to subtract TDS while paying the payee. This payment is not a salary payment, and the payer is required to file a TDS return on Form 26Q. The 26Q is a quarterly report that must be submitted. The total amount paid during the quarter, as well as the TDS amount deducted, must be recorded in 26Q. In this article information on what is Form 26Q, TDS return Form 26Q, how to download form 26Q, the penalty for late filing of Form 26Q, and all the other information on Form 26Q is included.

What is Form 26Q?

The total amount paid during the quarter, as well as the TDS amount deducted, must be recorded in 26Q.
For any payments received other than salary, it must be filed for Tax Deduction at Source (TDS).
It is submitted by the deductor on a quarterly basis and applies to tax deducted at source under sections 200(3), 193, and 194 of the Income Tax Act of 1961.
Interest on securities, professional fees, dividend securities, directors’ salaries, and other income are among the items on which tax is deducted at the source.

The due date for Filing of TDS Form 26Q

Quarterly Filings	Due Date
April to June	31st July
July to September	31st October
October to December	31st January
January to March	31st May

List of Section under TDS Form 26Q

Sections	Particulars
192	Information on no TDS from Salary.
192A	Information on TDS from payment of PF account of an employee.
193	TDS from interest paid on debentures issued by a corporation in which the general public has a significant stake. To a resident individual or HUF, provident interest is paid via account payee check.
194	TDS for Dividend.
194A	TDS on interest paid on time deposits by a banking business or a cooperative bank that is not on securities.
194B	Information on Tax Deducted at Source (TDS) from Cross world puzzle/Lottery.
194BB	Information on TDS from winning in Horse Races.
194C	TDS from sum of amount payable or paid to the Contractor.
194D	Information on TDS paid or payable to the insurance commission in current fiscal year.
194DA	TDS is deducted from the amount payable to a resident under a life insurance policy (including bonus).
194EE	TDS is deducted from payments paid under National Saving Scheme.
194F	Payment on account of repurchase of a unit of mutual funds.
194G	TDS from the commission paid on a Lottery Tickets.
194H	TDS from the payment of brokerage or commission.
194I(a)	TDS deducted from the acquisition price of an immovable property (other than agricultural land).
194I(b)	TDS on the rent of any land or building, or both, paid to a resident person by an individual/HUF [whose books of account are not needed to be audited under section 44AB].
194J	TDS from the payment of technical fees, royalty, directors fees, and professional fees.
194LA	TDS deducted from the payment of compensation for the compulsory acquisition of real estate (other than Agricultural Land).
194LBA	Any income received from the units of a business trust.
194DA	Any payment made on a life insurance policy.
194LBB	Income is received as a form of an investment fund.
194IA	Payment for the transfer of certain immovable property that is not agricultural land (9IA).
194LBC	Any income received from the investment done in the securitization trust.

Penalty for Late Filing of TDS Form 26Q

Late Filing Fees – A fee of Rs. 200 per day must be paid till the return is filed under section 234E. This sum must be paid on a daily basis until the total fine equals the TDS amount.

The penalty under 271H – In addition to the fees due under 234E, the AO may impose a penalty of Rs. 10,000 to Rs. 1,000,000.

There shall be no penalty imposed under 271H if —

TDS is a tax that is paid to the government.
Late filing fees and interest (if applicable) are also deposited, and the return is filed before the one-year deadline.

A process on “How to Download Form 26Q?”

Log in to the official website of TRACES
Select E-TDS/E-TCS from the drop-down list menu under the ‘Downloads’ tab
Select Quarterly Return, after that select the regular option
Once the above process is completed a Taxpayer will be directed to the new page
After that, under form taxpayer needs to click on Form 26Q to download
Once the taxpayer clicks that option Form 26Q will be downloaded

FAQs on TDS Return Form 26Q

1. What are the details mentioned in Form 26Q?

There is only one annexure on Form 26Q. Details of the challan (BSR code, date of payment, total amount, etc. ), as well as the deductor and deductees, must be included. In addition, reasons must be provided in the form if the deductor has not deducted TDS or has deducted it at a reduced rate.

2. What is the late filing of TDS Return?

If an assessee fails to file the TDS return by the due date, he or she would be subject to a penalty of Rs.200 each day for the duration of the default. The total penalty calculated at INR 200 each day, however, should not exceed the total amount of tax deducted.

3. Is it possible to transfer deduction entries from one challan to another?

Yes, by selecting challan entries and selecting the option of move deductee in traces, you can shift challan entries to another challan.

4. What is the rate of interest of Form 26Q?

If TDS (Tax Deducted at Source) is not deducted, a monthly interest rate of 1 percent will be charged from the due date to the actual date of deduction.
If Tax Deducted at Source (TDS) is not deposited, a monthly interest rate of 1.5 percent will be charged from the date of deduction until the date of payment.

5. When does TDS deducted under Section 194A?

If the interest amount in a financial year exceeds –, the payer will deduct TDS under section 194A.

Rs 40,000 if the payer is a financial institution, banking company, or a co-operative society engaged in banking or post office
Rs 50,000 if interest is paid to senior citizens
Rs 5,000 in all other cases except (1) and (2)
The recipient can provide the payer with Form 15H/Form 15 to avoid TDS being deducted.

6. How can I use challan to map numerous deduction entries?

By choosing the option “allowing linking deduction and challan of numerous sections.” under the Saral TDS general settings, you can map many entries to a single challan.

Conclusion

In any instance, if an error or discrepancy in the form is discovered after the TDS returns have been submitted, the deductor can file a corrective statement. Of course, this is not a free process. Charges for submitting a Revised Return must be paid by the deductor. However, there is no time restriction for submitting the rectification form. The deductor has the option of filing several Revised Returns.

Many adjustments can be simply included in previously filed TDs returns, but it is preferable to avoid them. The fees assessed each time are undoubtedly a significant reason why all of the details should be double-checked for errors before clicking on the submit button.

Tags: Tax Deducted at SourceTDS return

3 years ago

Zarana Mehta

Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.