Form 26Q – TDS Return Filing, Forms, Due Dates & Penalties

Last Updated at: May 29, 2020
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Form 26Q - TDS Return Filing, Forms, Due Dates & Penalties
In an announcement made on 13th May, honourable Finance Minister has extended the deadline for filing IT returns from 31st July to 30th November 2020, owing to the COVID-19 situation. This was a part of the economic booster package announced by the Hon’ble PM the previous day.

 

Tax Deducted at Source is abbreviated as TDS. Here, The source can be employers, promoters, contractors or any payer who pays another person. Everyone paying to others like employees, part-timers, freelancers, etc must file TDS Returns.

Indian Government uses Tax Deducted at Source (TDS), as a means to collect Income Tax. The TDS amount is deducted under the laws of Income Tax Act, 1961. According to the TDS provisions, any payment included is paid after the amount is deducted. It is deducted as per the percentage prescribed by the government.

The TDS collection process is managed and controlled by the Indian Revenue Service under the Department of Revenue. The Indian Revenue Service is a part of the Central Board of Direct Taxes (CBDT). It is very important for the government or legal boards in conducting audits.

The payee must file quarterly TDS return to CBDT. Also, the TDS return details must include information on the total TDS deducted, payment to the government on that particular quarter etc.

If a person X makes payment to a person Y, the payer X has to deduct TDS on certain occasions. This payment is other than the payment of salary (Non-salary), and the payer has to file TDS return in FORM 26Q.

Submission of Form 26Q:

Form 26Q is submitted every quarter. The total amount paid to the payee during the particular quarter and TDS deducted on such payments has to be furnished in Form 26Q. Form 26Q is applicable to deduct TDS under Section 200(3) of the Income Tax Act, 1961 under Sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194F, 194G, 194H, 194I and 194J. Any non-government deductors will be quoting the PAN, whereas, government deductors will be quoting “PANNOTREQD” on the form.

List of Sections covered under Form 26Q:

Section  Nature of Payment Section Code
193 Interest on securities 193
194 Dividend 194
194A Interest on than interest on securities 94A
194B Winnings from lotteries and crossword puzzles 94B
194BB Winnings from horse race 4BB
194C Payment of contractor and sub-contractor 94C
194D Insurance commission 94D
194EE Payment with regards to the deposits under the national savings scheme 4EE
194F Payments made on re-purchase of any units by UTI or Mutual Funds 94F
194G Commission, prize etc., on sale of lottery tickets 94G
194H Commission or Brokerage 94H
194I (a) Rent 4IA
194I (b) Rent 4IB
194J Fees for Professional or Technical Services 94J
194LA Compensation Payment any immovable property acquisition 4LA
194LBA Certain income from units of a business trust 4BA
194DA Payment in respect of life insurance policy 4DA
192A Payment of accumulated balance due to an employee from the trustees of the Employees’ Provident Fund Scheme, 1952 92A
194LBB Income in respect of units of investment fund LBB
194IA Payment on transferring any immovable property ( This does not include any agricultural land) 9IA
194LBC Income in respect of investment in securitization trust LBC

 

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Deductor Category:

  1. Statutory Body ( Central government)
  2. Statutory Body (State government)
  3. Autonomous Body (Central government)
  4. Autonomous Body (State government)
  5. Local Authority (Central government)
  6. Local Authority (State government)
  7. Company
  8. Branch/ Division of Company
  9. Association of Person (AOP)
  10. Association of Person (Trust)
  11. Artificial Juridical Person
  12. Body of Individuals
  13. Individual/HUF
  14. Firm

Due Dates of Filing Form 26Q

Quarter  Due Date
April to June 31st July
July to September 31st October
October to December 31st January
January to March 31st April

 

Penalties:

When the deductor doesn’t submit Form 26Q within the deadline, then they will be subjected to one of the penalties listed below:

  • If a deductor does not file the TDS on the submission date, he/she/they may have to pay a late filing fee.
  • The deductor also has to pay interest levied on the TDS amount, if he misses the submission deadline.
  • The deductor is charged with a large penalty when they fail to file TDS within the deadline or failed to deposit the amount within the given one year time period from the actual due date.

The modified rules, effective from April 1, 2017, can make you liable to pay a maximum penalty of Rs. 10,000.

Benefits of TDS:

Both the government and the taxpayers are benefitted from receiving and paying TDS respectively.

  1. TDS helps the government to collect taxes regularly.
  2. It enables a regular flow of income to the government.
  3. Paying TDS quarterly has reduced the overall burden of paying the huge tax amount at once. TDS helps to distribute the tax payment into parts spread over several months making it easier for the taxpayer.
  4. The taxpayers are provided with an easy mode of tax payment through TDS.

Hence, to conclude, the government approaches TDS deduction as a way of collecting revenue. They deduct the revenue from various sectors and individual entities ensuring the smooth functioning of the government itself. This directly reflects on the country’s financial and other improvements. It also supports the taxpayers in paying taxes in quarterly split up and not all at once.

 

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Form 26Q – TDS Return Filing, Forms, Due Dates & Penalties

5539
In an announcement made on 13th May, honourable Finance Minister has extended the deadline for filing IT returns from 31st July to 30th November 2020, owing to the COVID-19 situation. This was a part of the economic booster package announced by the Hon’ble PM the previous day.

 

Tax Deducted at Source is abbreviated as TDS. Here, The source can be employers, promoters, contractors or any payer who pays another person. Everyone paying to others like employees, part-timers, freelancers, etc must file TDS Returns.

Indian Government uses Tax Deducted at Source (TDS), as a means to collect Income Tax. The TDS amount is deducted under the laws of Income Tax Act, 1961. According to the TDS provisions, any payment included is paid after the amount is deducted. It is deducted as per the percentage prescribed by the government.

The TDS collection process is managed and controlled by the Indian Revenue Service under the Department of Revenue. The Indian Revenue Service is a part of the Central Board of Direct Taxes (CBDT). It is very important for the government or legal boards in conducting audits.

The payee must file quarterly TDS return to CBDT. Also, the TDS return details must include information on the total TDS deducted, payment to the government on that particular quarter etc.

If a person X makes payment to a person Y, the payer X has to deduct TDS on certain occasions. This payment is other than the payment of salary (Non-salary), and the payer has to file TDS return in FORM 26Q.

Submission of Form 26Q:

Form 26Q is submitted every quarter. The total amount paid to the payee during the particular quarter and TDS deducted on such payments has to be furnished in Form 26Q. Form 26Q is applicable to deduct TDS under Section 200(3) of the Income Tax Act, 1961 under Sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194F, 194G, 194H, 194I and 194J. Any non-government deductors will be quoting the PAN, whereas, government deductors will be quoting “PANNOTREQD” on the form.

List of Sections covered under Form 26Q:

Section  Nature of Payment Section Code
193 Interest on securities 193
194 Dividend 194
194A Interest on than interest on securities 94A
194B Winnings from lotteries and crossword puzzles 94B
194BB Winnings from horse race 4BB
194C Payment of contractor and sub-contractor 94C
194D Insurance commission 94D
194EE Payment with regards to the deposits under the national savings scheme 4EE
194F Payments made on re-purchase of any units by UTI or Mutual Funds 94F
194G Commission, prize etc., on sale of lottery tickets 94G
194H Commission or Brokerage 94H
194I (a) Rent 4IA
194I (b) Rent 4IB
194J Fees for Professional or Technical Services 94J
194LA Compensation Payment any immovable property acquisition 4LA
194LBA Certain income from units of a business trust 4BA
194DA Payment in respect of life insurance policy 4DA
192A Payment of accumulated balance due to an employee from the trustees of the Employees’ Provident Fund Scheme, 1952 92A
194LBB Income in respect of units of investment fund LBB
194IA Payment on transferring any immovable property ( This does not include any agricultural land) 9IA
194LBC Income in respect of investment in securitization trust LBC

 

Get free legal advice now

Deductor Category:

  1. Statutory Body ( Central government)
  2. Statutory Body (State government)
  3. Autonomous Body (Central government)
  4. Autonomous Body (State government)
  5. Local Authority (Central government)
  6. Local Authority (State government)
  7. Company
  8. Branch/ Division of Company
  9. Association of Person (AOP)
  10. Association of Person (Trust)
  11. Artificial Juridical Person
  12. Body of Individuals
  13. Individual/HUF
  14. Firm

Due Dates of Filing Form 26Q

Quarter  Due Date
April to June 31st July
July to September 31st October
October to December 31st January
January to March 31st April

 

Penalties:

When the deductor doesn’t submit Form 26Q within the deadline, then they will be subjected to one of the penalties listed below:

  • If a deductor does not file the TDS on the submission date, he/she/they may have to pay a late filing fee.
  • The deductor also has to pay interest levied on the TDS amount, if he misses the submission deadline.
  • The deductor is charged with a large penalty when they fail to file TDS within the deadline or failed to deposit the amount within the given one year time period from the actual due date.

The modified rules, effective from April 1, 2017, can make you liable to pay a maximum penalty of Rs. 10,000.

Benefits of TDS:

Both the government and the taxpayers are benefitted from receiving and paying TDS respectively.

  1. TDS helps the government to collect taxes regularly.
  2. It enables a regular flow of income to the government.
  3. Paying TDS quarterly has reduced the overall burden of paying the huge tax amount at once. TDS helps to distribute the tax payment into parts spread over several months making it easier for the taxpayer.
  4. The taxpayers are provided with an easy mode of tax payment through TDS.

Hence, to conclude, the government approaches TDS deduction as a way of collecting revenue. They deduct the revenue from various sectors and individual entities ensuring the smooth functioning of the government itself. This directly reflects on the country’s financial and other improvements. It also supports the taxpayers in paying taxes in quarterly split up and not all at once.

 

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