Form 26Q TDS Return Filing for Non-Salary Deductions

Sections Covered in Form 26Q

Form 26Q includes various sections pertaining to different types of payments. These sections include:

• 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

• 194DA - Maturity of life insurance policy

• 194EE - Payment in respect of deposit under National Savings Scheme

• 194F - Payments on account of repurchase of Units by Mutual Funds or UTI 94F

• 194G - Commission, prize etc., on sale of lottery tickets

• 194H - Commission or Brokerage

• 194I(a) - Rent

• 194I(b) - Rent

• 194J - Fees for Professional or Technical Services

• 194K - Income in respect of units

• 194LA - Payment of Compensation on acquisition of certain immovable property

• 194LBA - Certain income from units of a business trust

• 194LBB - Income in respect of units of investment fund

• 194LBC - Income in respect of investment in securitization trust

• 194N - Payment of certain amounts in cash

• 194O - Payment of certain sums by e-commerce operator to e-commerce participant

• 194Q - TDS on purchase of goods

• 194R - TDS on benefit or perquisite in respect of business or profession

• 194S - TDS on transfer of Virtual Digital Assets

• 197A - Details of payment where there is no deduction of tax in certain cases

Details to be Filled in 26Q

Form 26Q contains one annexure, unlike Form 24Q, which contains two. Challan details (BSR code, date of payment, total amount etc.) and the details of the deductor and deductees must be mentioned. Reasons for non-deduction of TDS or deduction at a lower rate should also be specified.

Due Dates for Filing Form 26Q 

The due dates for filing Form 26Q are as follows:

• April to June: 31st July

• July to September: 31st October

• October to December: 31st January

• January to March: 31st May

Interest for Late Deduction or Late Deposit

• If TDS is not deducted: 1% per month from the due date of deduction to the actual date of deduction

• If TDS is deducted but not deposited: 1.5% per month from the actual date of deduction to the actual date of payment

Penalties for Late Filing of 26Q

Late Filing Fees: Under section 234E, a fine of Rs. 200 per day is to be paid until the return is filed, up to the total TDS amount.

Penalty under 271H: The Assessing Officer (AO) may charge a penalty of a minimum of Rs. 10,000 and a maximum of Rs. 1,00,000, in addition to the fees paid under section 234E. However, no penalty will be charged under section 271H if:

• TDS is deposited to the government

• Late filing fees and interest (if any) are also deposited

• The return is filed before the expiry of one year from the due date

Points to Consider 

• Verify all PAN numbers

• Verify the challans and match them through OLTAS or NSDL

• A signed Form-27A must be filed with the TDS return

Conclusion

Filing Form 26Q accurately and on time is essential for TDS compliance on payments other than salary. Understanding the sections, mandatory fields, due dates, and potential penalties can help filers avoid issues with the Income Tax Department.