Form 26Q - Quarterly TDS Statement Non-Salary
In India, the Tax Deducted at Source (TDS) mechanism ensures that tax is collected at the very point of income generation. While Form 24Q is used for reporting TDS on salary, Form 26Q is the designated quarterly TDS statement for all payments other than salary made to residents.
What is Form 26Q?
Form 26Q is a statement that a deductor (the person or entity making the payment and deducting tax) files with the Income Tax Department on a quarterly basis. It contains details of TDS deducted on various types of payments made to residents, excluding salary payments.
Common Payments Covered by Form 26Q:
Form 26Q encompasses a wide array of non-salary payments where TDS is applicable. Some of the prominent sections covered include:
- Interest other than interest on securities
- Payments to contractors
- Fees for professional or technical services
- Rent payments
- Commission or brokerage
- Purchase of goods
- Dividends
- Winnings from lottery or crossword puzzles
- Insurance commission
- Payments for transfer of immovable property (excluding certain specified cases, which are covered by Form 26QB)
Key Details in Form 26Q:
The information reported in Form 26Q includes:
- Deductor Details: Name, address, TAN (Tax Deduction and Collection Account Number) and PAN (Permanent Account Number) of the person or entity deducting tax.
- Deductee Details: Name and PAN of the deductee (the person or entity whose tax has been deducted).
- Payment Details: Nature of payment, date of payment, and the amount on which TDS was deducted.
- TDS Details: Date of deduction, amount of TDS deducted, and the section of the Income Tax Act under which TDS was deducted.
- Challan Details: Information regarding the challans used for depositing the TDS with the government, including challan serial number, date of deposit, TDS amount, and BSR code.
Due Dates for Filing Form 26Q:
The due dates for filing Form 26Q quarterly are:
- Q1 (April to June): July 31st of the financial year.
- Q2 (July to September): October 31st of the financial year.
- Q3 (October to December): January 31st of the financial year.
- Q4 (January to March): May 31st of the subsequent financial year.
Late filing of Form 26Q or furnishing incorrect particulars can lead to penalties under the Income-Tax Act. It is also crucial to ensure that all tax deductions are deposited on time to avoid interest liabilities.
Issuance of Form 16A:
After successfully filing Form 26Q and depositing the TDS, the deductor must issue Form 16A, which is the TDS certificate for non-salary payments, to the deductee. This certificate serves as proof of tax deduction and allows the deductee to claim credit for the TDS while filing their Income Tax Return. The details reported in Form 26Q are crucial for ensuring that the TDS credit is accurately reflected in the deductee's Form 26AS.
The e-filing process for Form 26Q is facilitated through the Income Tax Department's portal or authorized third-party software.