TDS Details filed using form 26Q TDS Return Filing, Due Dates & Penalties

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). This department is extremely important for the government or legal boards in conducting audits.

In this case, the source can be employers, promoters, contractors, or any payer who pays someone else. Employees, part-timers, freelancers, and others who pay others must also file TDS returns. The payee must file quarterly TDS returns to CBDT. Also, the TDS return details must include information on the total TDS deducted, payment to the government in that particular quarter etc.

Illustration – If person X makes payment to a person Y, the payer X has to deduct TDS on certain occasions. And this payment does not include the payment of salary and must be non-salary income, and the payer has to file a 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 the TDS deducted on such payments have to be furnished in Form 26Q. 

All non-government deductors will be required to quote the PAN, whereas, government deductors will be quoting ‘PANNOTREQD’ on the form.

List of Sections Covered under Form 26Q:

Section Nature of PaymentSection Code
193Interest on securities193
194Dividend194
194AInterest on than interest on securities94A
194BWinnings from lotteries and crossword puzzles94B
194BBWinnings from horse race4BB
194CPayment of contractor and sub-contractor94C
194DInsurance commission94D
194EEPayment with regards to the deposits under the national savings scheme4EE
194FPayments made on re-purchase of any units by UTI or Mutual Funds94F
194GCommission, prize etc., on sale of lottery tickets94G
194HCommission or Brokerage94H
194I (a)Rent4IA
194I (b)Rent4IB
194JFees for Professional or Technical Services94J
194LACompensation Payment any immovable property acquisition4LA
194LBACertain income from units of a business trust4BA
194DAPayment in respect of life insurance policy4DA
192APayment of accumulated balance due to an employee from the trustees of the Employees’ Provident Fund Scheme, 195292A
194LBBIncome in respect of units of investment fundLBB
194IAPayment on transferring any immovable property ( This does not include any agricultural land)9IA
194LBCIncome in respect of investment in securitization trustLBC

Need for Filing TDS:

Both the government and the taxpayers are benefitted from receiving and paying TDS respectively. The advantages are as follows – 

  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 a huge tax amount all at once.
  4. TDS helps to distribute the tax payment into parts spread over several months making it easier for the taxpayer.
  5. Taxpayers are also provided with an easy mode of tax payment through TDS.

Deductor Category under Form 26Q:

  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 Persons (AOP)
  10. Association of Person (Trust)
  11. Artificial Juridical Person
  12. Body of Individuals
  13. Individual/HUF
  14. Firm

Due Dates for Filing Form 26Q

Quarter Due Date
April to June31st July
July to September31st October
October to December31st January
January to March31st April

Penalties for not Filing Form 26Q:

When a deductor does not submit Form 26Q within the deadline, then they will be subjected to one or more 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 on the TDS amount, if he misses the submission deadline.
  • The deductor is charged with a larger penalty when they fail to file TDS within the deadline or fail 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 ₹10,000.

Conclusion 

To summarize, the government views TDS deduction as a method of collecting revenue. They require the deduction of revenue from various sectors and individual entities to ensure the government’s smooth operation. This reflects the country’s financial and other advancements. It also encourages taxpayers to pay their taxes in quarterly installments rather than all at once

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