Form 26Q

At JuroLegal, we provide complete assistance in preparing and filing Form 26Q, which reports Tax Deducted at Source (TDS) on all payments other than salary — such as professional fees, rent, interest, contract payments, and commission — under the Income Tax Act, 1961. Our experts ensure accurate computation of TDS, challan verification, and quarterly filing on the TRACES portal, fully complying with the latest CBDT and Income Tax Department requirements. We help businesses and deductors maintain proper records, avoid defaults, and prevent penalties arising from incorrect or delayed filings. Whether you’re a company, partnership firm, or individual deductor, JuroLegal ensures seamless, compliant, and error-free Form 26Q filing — giving you peace of mind and a clear audit trail of all non-salary TDS deductions.

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  • Form 26Q is a quarterly statement of TDS (Tax Deducted at Source) that is filed by the deductor (payer other than an individual) for payments other than salaries. This form is used to report TDS on payments such as interest, dividends, rent, professional fees, etc. It includes details such as the PAN of the deductee (recipient), the amount paid, the amount of TDS deducted, and other relevant information for each transaction.

The Indian Income Tax Act provides TDS deduction provisions for various types of payments, ensuring accurate deduction and remittance as follows:

​     Section 193 – Interest on Securities

  •        TDS Rate: 10%
  •        Example: Interest on Government Bonds
  1.      Section 194 – Dividends
  •        TDS Rate: 10%
  •        Example: Dividends from XYZ Company

 

  1.      Section 194A – Interest other than Interest on Securities
  •        TDS Rate: 10%
  •        Example: Interest on Fixed Deposits

 

  1.      Section 194B – Winnings from Lotteries and Puzzles
  •        TDS Rate: 30%
  •        Example: Lottery Prize Winnings

 

  1.      Section 194C – Payments to Contractors/sub-contractors against works contract
  •        TDS Rate: 1% to 2%
  •        Example: Payment to Construction Contractors

 

  1.      Section 194D – Commission from Insurance
  •        TDS Rate: 5%
  •        Example: Commission to Insurance Agents

 

  1.      Section 194DA – Payments in respect of Life Insurance Policy
  •        TDS Rate: 5%
  •        Example: Payouts from Life Insurance Policies

 

  1.      Section 194EE – Payments in respect of deposits under National Saving Schemes etc.
  •        TDS Rate: 20%
  •        Example: Interest on National Saving Certificates

 

  1.      Section 194F – Payments on the repurchase of units of Mutual Fund or UTI schemes
  •        TDS Rate: 20%
  •        Example: Income from Mutual Fund Repurchases

 

  1.    Section 194G – Commission etc. on sale of lottery tickets
  •        TDS Rate: 5%
  •        Example: Commission on Lottery Ticket Sales

 

  1.    Section 194H – Commission or Brokerage
  •        TDS Rate: 5%
  •        Example: Brokerage Commissions

 

  1.    Section 194I – Rent
  •        TDS Rate: 10%
  •        Example: Rental Income

 

  1.    Section 194J – Fees for Professional or Technical Services
  •        TDS Rate: 10%
  •        Example: Fees for Professional Services

 

  1.    Section 194K – Income in respect of Units
  •        TDS Rate: 10%
  •        Example: Income from Investments in Units

 

  1.    Section 194LA – Payment of compensation on acquisition of certain immovable property
  •        TDS Rate: 10%
  •        Example: Property Acquisition Compensation

 

  1.    Section 194LBA – Certain incomes from units of Business Trust
  •        TDS Rate: 10%
  •        Example: Income from Business Trust Units

 

  1.    Section 194LBB – Income in respect of units of Investment Fund
  •        TDS Rate: 30%
  •        Example: Income from Investment Fund Units

 

  1.    Section 194LBC – Income in respect of investment in Securitization Trust
  •        TDS Rate: 25%
  •        Example: Income from Securitization Trust Investments

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These sections act as the compass for deductors, guiding them to ensure precise TDS deductions.

Compliance with TDS provisions is not just a legal obligation; it’s a fundamental aspect of responsible financial management.

 

To meet compliance requirements effectively, let’s dive into Form 26Q, the quarterly return that serves as a crucial tool for deductors.

  • For Quarter 1 (April to June): Due date is typically July 31st.
  • For Quarter 2 (July to September): Due date is typically October 31st.
  • For Quarter 3 (October to December): Due date is typically January 31st.
  • For Quarter 4 (January to March): Due date is typically May 31st of the following financial year.

Fees, Interest, and Penalties related to Form 26Q

1. Late Filing Fees under Section 234E

If the deductor fails to file Form 26Q within the due date, a late filing fee is levied under Section 234E. The fee is:

  • ₹200 per day until the return is filed.
  • The total fee cannot exceed the amount of TDS.

2. Interest on Late Deduction or Late Payment of TDS

  • Interest for Late Deduction:

    • If TDS is not deducted on time, interest is charged at 1% per month or part of a month from the date on which TDS was deductible to the actual date of deduction.

  • Interest for Late Payment:

    • If TDS is deducted but not paid to the government on time, interest is charged at 1.5% per month or part of a month from the date of deduction to the date of payment.

3. Penalties under Section 271H

In addition to late fees and interest, penalties can be levied under Section 271H for:

  • Failure to file TDS/TCS statements within the due date.
  • Incorrect filing of TDS/TCS statements.

The penalty can range from a minimum of ₹10,000 to a maximum of ₹1,00,000.