Form 26Q is a quarterly statement applicable for TDS deducted under Sub-Section (3) of Section 200 of the Income Tax Act in respect of payments other than Salary which shall be discussed in this article in detail.
The Taxpayer or Deductor deducts tax on certain payments at the rate and on the amount as specified under the income tax act, 1961 and remits the same to the credit of the central government. After remitting such amount within the prescribed time, such a deductor or taxpayer needs to prepare a statement for such a period and deliver it to the income tax department within the prescribed time.
Form 26Q is one of the aforesaid statements filed with the Income-tax Department on a quarterly basis in respect of the payments made other than salary. In the case of TDS on Salary payments, Form 24Q shall be filed with the Income Tax Department.
Sections Roofed under Form 26Q
Form 26Q statement shall be submitted for the payments for which tax deducted under the following prescribed sections
- 193 – TDS on Interest on securities
- 194 – TDS on Dividend
- 194A – TDS deducted on Interest other than Interest on Securities
- 194B – TDS deducted on Winnings from lotteries and crossword puzzles
- 194BB – TDS deducted on Winnings from horse race
- 194C – TDS on Payment of contractor and subcontractor
- 194D – TDS on Insurance commission
- 194EE – TDS on Payment in respect of deposit under national savings scheme
- 194F – TDS on Payments on account of repurchase of units by Mutual Funds or UTI 94F
- 194G – TDS on Commission, prize, etc., on sale of lottery tickets
- 194H – TDS on Commission or Brokerage
- 194I(b) – TDS on Rent
- 194J – TDS deducted on Fees for Professional or Technical Services
- 194LA – TDS deducted on Payment of Compensation on acquisition of certain immovable property
- 194LBA – TDS deducted on Certain income from units of a business trust
- 194DA – TDS deducted on Payment in respect of life insurance policy
- 194LBB – TDS on Income in respect of units of investment fund
- 194LBC – TDS on Income in respect of investment in securitization trust.
Lower rate of Tax Deduction
On obtaining the certificate of lower deduction under section 197 of Income Tax Act,1961 by the deductee, then TDS shall be deducted on the payments made to such deductee at the rate as specified in the certificate and the same shall be reflected on the Form 26Q (TDS Return for Non-Salary Payments)
Form 26Q TDS Return Due Date
|S.No||Quarter Period||Due Date|
|1||1st April to 30th June||31st July of the Financial Year|
|2||1st July to 30th September||31st October of the Financial Year|
|3||1st October to 31st December||31st January of the Financial Year|
|4||1st January to 31st March||31st May of the Financial Year immediately following the financial year in which the deduction is made|
Applicable Interest to Form 26Q (Non-Salary TDS Return)
- If TDS has not been deducted, interest at the rate of 1% per month or part of the month from the due date of deduction to the actual date of deduction shall be applicable.
- If TDS deducted but not has been deposited to the credit of Central Government, interest at the rate of 1.5% per month or part of the month from the actual date of deduction to the actual date of payment shall be applicable.
Penalty applicable to Form.26Q (Non-Salary TDS Return)
- Late filing of Form 26Q- As per section 234E, a penalty of Rs.200/- per day shall be applicable until the date of filing of return. The penalty shall be applicable for each day until the total penalty becomes equal to the TDS amount.
- Non-Filing of Form 26Q- As per section 271H, in addition to the penalty under section 234E, a minimum penalty of Rs.10,000/- and a maximum penalty of Rs.1,00,000/- shall be applicable.
- No penalty under section 271H shall be applicable if following conditions are satisfied
- TDS should be deposited to the credit of the Central Government.
- Applicable Interest and Late filing fees have also been deposited.
- Return is filed within a period of 1year from the due date.