26Q

Who Needs to File Form 26Q?

Any entity or organization that deducts TDS on non-salary payments to residents is required to file Form 26Q. This includes both government and non-government deductors. Non-government deductors must provide their Permanent Account Number (PAN), while government deductors can state "PANNOTREQD". A Tax Deduction Account Number (TAN) is mandatory for all deductors filing Form 26Q.

What Information Does Form 26Q Include?

Form 26Q has one annexure and requires detailed information to be filled out. This includes:

• Deductor Details: Your name, PAN, TAN, and address.
• Challan Details: Information about the tax deposit, such as the BSR code (Banker's Sort Code), date of deposit, challan serial number, and the amount of TDS deposited.
• Deductee Details: For each person or entity you paid, you need to provide their PAN, name, the type of payment made, the amount paid, the TDS rate applied, and the actual tax deducted.
• Reasons for Lower/No Deduction: If you didn't deduct TDS or deducted it at a lower rate, you need to provide valid reasons or exemption codes. For instance, if a valid PAN isn't provided, TDS is typically deducted at a higher rate, often 20%.

When is Form 26Q Due?

Form 26Q is a quarterly return, meaning it needs to be filed four times a year. The due dates are generally:

• For April to June quarter: July 31st.
• For July to September quarter: October 31st.
• For October to December quarter: January 31st.
• For January to March quarter: May 31st.

It's also important to remember that TDS deducted each month should be paid to the government by the 7th of the next month, except for March, which is due by April 30th.

Penalties for Late Filing or Non-Compliance

Failing to file Form 26Q on time or not complying with TDS rules can lead to penalties and interest. These can include:

• Late Filing Fee (Section 234E): A fee of ?200 per day is charged until the return is filed, with the total fee capped at the amount of TDS deducted.
• Interest for Late Deduction: If TDS is not deducted, 1% interest per month is charged from the date it should have been deducted until the actual deduction date.
• Interest for Late Payment: If TDS is deducted but not deposited, 1.5% interest per month is charged from the date of deduction until the actual payment date.
• Penalty (Section 271H): A penalty ranging from ?10,000 to ?1, 00,000 may be levied for incorrect or delayed filing. However, this penalty might be waived if the TDS is deposited in full, late fees and interest is paid, and the return is filed within one year of the due date.
• Prosecution for Non-Deposit: If deducted TDS is not deposited, it can lead to rigorous imprisonment from 3 months to 7 years, along with a fine.

How to Download Form 26Q

You can download Form 26Q from the official website of NSDL (now protean eGov Technologies Limited). The steps are generally:

1.     Visit the official website of NSDL at www.protean-tinpan.com.

2.     Click on the "Downloads" tab and choose "E-TDS/E-TCS" from the dropdown menu.

3.     Select "Quarterly Returns" and then "Regular".

4.   You will be redirected to a new page where you can select "Form 26Q" to download. 

Correcting Errors in Form 26Q

It's common for errors to occur when filing TDS returns. If you find a mistake after submitting Form 26Q, you can file a correction statement. Common corrections include updating PAN numbers, challan details, or deductee information. While some minor corrections can be done online, more complex changes might require submitting a revised return through a TIN-FC (TIN Facilitation Centre).