TDS Return Form 26Q: Due Dates, Applicability & Related Forms
TDS Return Form 26Q: Due Dates, Applicability & Related Forms Form 26Q is a quarterly TDS return that must be filed by deductors when tax is deducted at source on payments…
TDS Return Form 26Q: Due Dates, Applicability & Related Forms
Form 26Q is a quarterly TDS return that must be filed by deductors when tax is deducted at source on payments made to resident individuals other than salaries. This includes deductions on professional fees, contractor payments, interest (excluding securities), dividends, commissions, and more under various sections of the Income Tax Act.
1. What is Form 26Q and When is it Applicable?
Form 26Q must be filed when TDS is deducted on any income other than salary paid to a resident person under sections such as 194C, 194J, 194A, etc.
💡 Note: If the payment is made to a non-resident, Form 27Q is applicable instead of 26Q.
2. Who is a Deductor and Deductee?
Deductor: The person or entity responsible for deducting TDS.
Deductee: The person whose payment is subject to TDS.
3. TDS Rates and Exclusions
TDS rates are prescribed under different sections and do not depend on income tax slab rates.
Surcharge and cess are not considered at the time of TDS deduction.
4. Due Dates for Filing Form 26Q
TDS returns for Form 26Q are filed quarterly. Below are the filing deadlines:
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | April – June | 31st July |
| Q2 | July – September | 31st October |
| Q3 | October – December | 31st January |
| Q4 | January – March | 31st May |
5. Due Dates for TDS Challan Payment
TDS deducted must be deposited monthly through challans. The deadlines are as follows:
| Month of Deduction | Due Date for Payment |
|---|---|
| April | 7th May |
| May | 7th June |
| June | 7th July |
| July | 7th August |
| August | 7th September |
| September | 7th October |
| October | 7th November |
| November | 7th December |
| December | 7th January |
| January | 7th February |
| February | 7th March |
| March | 30th April |
🗓️ Exception: For March, the deadline is 30th April instead of 7th April.
6. Form 16A: TDS Certificate
Form 16A is a TDS certificate issued quarterly by the deductor to the deductee, applicable for non-salary TDS deductions.
7. Interest on Late Deduction of TDS
If TDS is not deducted on time, interest is levied at 1% per month or part thereof from the date TDS was deductible to the actual date of deduction.
Example:
Amount liable for TDS: ₹10,00,000
TDS @10%: ₹1,00,000
TDS Due: April
TDS Deducted: June
Interest: ₹1,00,000 × 1% × 3 months = ₹3,000
8. Interest on Late Payment of TDS
If TDS is deducted but not deposited on time, interest is charged at 1.5% per month or part thereof from the date of deduction to the date of deposit.
Example:
TDS Deducted: 30th April
Due Date for Payment: 7th May
Actual Payment: 10th June
Interest: ₹1,00,000 × 1.5% × 3 months = ₹4,500
9. Can Interest Be Claimed as Expense?
No. Interest on late deduction or payment of TDS is disallowed under the Income Tax Act and cannot be claimed as a business expense.
Also, since this is a permanent disallowance, no deferred tax is created on it.
10. Key TDS Sections Covered under Form 26Q
| Section | Nature of Payment |
|---|---|
| 194J | Professional or Technical Services |
| 194C | Payment to Contractors |
| 194A | Interest (Other than Securities) |
| 194D | Insurance Commission |
| 194H | Brokerage and Commission |
| 193 | Interest on Securities |
| 194 | Dividend (other than 115-O) |
11. Sections Not Covered Under Form 26Q
Certain payments require TDS compliance through different forms:
| Section | Nature of Payment | Applicable Form |
|---|---|---|
| 194IA | Purchase of Immovable Property | 26QB |
| 194IB | Rent by Individual/HUF (not liable for tax audit) | 26QC |
| 194IC | Joint Development Agreements | 26QC |
| 194M | Payment by Individual/HUF for contract/work | 26QD |
| 194S | Virtual Digital Assets | 26QE or 26Q |
⚠️ In the above cases, Form 26Q is not applicable. The deductor must use the specific TDS forms assigned.
Understanding the nuances of Form 26Q, its filing timelines, interest liabilities, and associated forms is essential for staying compliant with TDS provisions. Late deduction or payment not only leads to interest liability but can also result in penalties and disallowance of expenses. Make sure to file accurate and timely TDS returns and use the correct form as per the nature of the transaction.
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