TDS 26Q – Details and Due Date

TDS 26Q – Details and Due Date

TDS 26Q refers to the Tax Deducted at Source (TDS) Return for Payments other than Salaries, under Section 194 of the Income Tax Act. It is used to report TDS deductions made on payments like rent, professional fees, interest, commission, etc., to non-salaried individuals or entities.

Key Details of TDS 26Q:

1. Applicability:
   • Form 26Q is applicable for all types of non-salary payments where TDS has been deducted. This includes, but is not limited to:
     • Payments to contractors, professionals, and consultants (Section 194J).
     • Rent (Section 194I).
     • Interest payments (Section 194A).
     • Commission payments (Section 194H).
     • Payments to non-residents (Section 195) for certain types of income.
   • If a business or individual is deducting tax on payments made to another person for services or transactions, they need to file Form 26Q.
2. Forms of TDS 26Q:
   • Part A: Contains a summary of the TDS return, including details of the deductor, total TDS deducted, and total TDS paid to the government.
   • Part B: Contains the details of the payee, such as the name, PAN, the amount paid, TDS deducted, and the challan details for TDS payments.
3. Due Date for Filing TDS 26Q: TDS 26Q is filed quarterly, and the due dates for filing the return are as follows:
   • 1st Quarter (April - June): 31st July
   • 2nd Quarter (July - September): 31st October
   • 3rd Quarter (October - December): 31st January
   • 4th Quarter (January - March): 31st May (of the following assessment year)

Note: The due date for the 4th quarter return is extended to May 31st as the tax is deducted until March, and the filing is due after the financial year ends.

1. Penalty for Non-Compliance:
   • Late Filing Fee: If the return is filed after the due date, a penalty of ₹200 per day is applicable under Section 234E. This penalty is applicable until the return is filed.
   • Interest on Late Payment: If the TDS is not deposited on time, interest is charged at the rate of 1.5% per month (compounded) on the tax deducted but not paid to the government.
   • Penalties for Incorrect Returns: Incorrect or incomplete details in the TDS return can lead to penalties under Section 271H. This can also include prosecution for serious defaults.
2. Challan Details:
   • When filing TDS 26Q, you must provide details of the challan used for the payment of TDS. This includes the challan number, BSR code, and payment date.
   • It is important to ensure that the TDS payment is made on time, and that it matches the details in the return.
3. TDS Deduction Thresholds:
   • Different sections (such as 194A, 194I, etc.) have different thresholds for when TDS must be deducted. If the payment exceeds the specified limit, TDS is to be deducted.

For example:

1. Under Section 194A, TDS on interest is applicable if the interest payment exceeds ₹40,000 in a financial year (₹50,000 for senior citizens).
2. Under Section 194I, TDS on rent is applicable if the rent payment exceeds ₹2,40,000 annually.

Conclusion:

TDS 26Q is a quarterly return that businesses and individuals must file to report TDS deductions on non-salary payments. Ensuring accurate reporting and timely filing is crucial to avoid penalties and interest. It's important for deductors to match the TDS amounts with payments made and report them correctly, including all necessary details such as payee information, TDS deducted, and payment details.