Summary: Form 26Q is a quarterly TDS return filed by deductors for tax deducted at source on payments other than salaries made to resident individuals. This includes deductions under various Income Tax Act sections, such as those for professional fees, contractor payments, dividends, and interest (excluding securities). Surcharge and cess are not considered when deducting TDS. Quarterly filing deadlines for Form 26Q vary, with returns for April-June due by July 31st, July-September by October 31st, October-December by January 31st, and January-March by May 31st. Monthly challan payments for TDS are due by the 7th of the following month, except for March, which is April 30th. Deductors issue Form 16A to deductees, confirming the TDS amount. Late TDS deduction incurs a 1% per month interest, calculated from the deduction due date to the actual deduction date. Late payment of deducted TDS attracts a 1.5% per month interest, from the deduction date to the actual payment date. This interest cannot be claimed as an expense. Certain sections, like those for immovable property purchase (194IA) or rent payments by individuals/HUFs (194IB), have different applicable forms (26QB, 26QC, etc.) and are not covered under Form 26Q.
TDS return 26Q & due date along with various forms:-
1.Applicability of 26Q-
- TDs on income other than salary is deducted under various sections of the Income Tax Act.
2. Resident or Non-resident individual:-
- If TDs is deducted of resident persons on other than salary then the deductor is required to file 26Q.
- If TDs is deducted of non-resident persons on other than salary then the deductor is required to file 27Q (This will be covered in a separate article).
3. TDs return:-
In case of TDs deducted on income of resident other than salary, deductor is required to file the Form-26Q, which contains the details of deductee whose TDs has been deducted.
4. Deductor vs Deductee:-
| 1 | Deductor | The person who deducts the TDs |
| 2 | Deductee | The person whose TDs is deducted |
5. TDs rate:-
TDs rate are prescribed under various sections. TDs will not be deducted on the basis of slab rate.
6. Surcharge & cess:-
Surcharge will not be considered at the time of deducting of TDs.
Cess will not be considered at the time of deducting of TDs.
7. TDs return due date:-
| Sr. No. | Period | Due date of filing of 26Q |
| 1 | April to June | 31st July |
| 2 | July to September | 31st October |
| 3 | October to December | 31st January |
| 4 | January to March | 31st May instead of 30th April |
- The return will be filed on quarterly basis.
- The due date is the last day of the month following the end of the each quarter except for the 4th
8. Challan due date:-
| Sr. No. | Period of deduction | Due date of payment |
| 1 | April | 7th May |
| 2 | May | 7th June |
| 3 | June | 7th July |
| 4 | July | 7th August |
| 5 | August | 7th September |
| 6 | September | 7th October |
| 7 | October | 7th November |
| 8 | November | 7th December |
| 9 | December | 7th January |
| 10 | January | 7th February |
| 11 | February | 7th March |
| 12 | March | 30th April instead of 7th April |
- Challan should be deposited on monthly basis.
- The due date is the 7th of the following month in which TDs was deducted except for the month of March.
9. Form-16A:-
- It is issued by deductor to deductee on quarterly
- Form-16A is issued only when TDs has been deducted on other than salary except in some cases.
10. Interest on late deduction of TDs:-
- If TDs is not deducted on time then interest liability will arise @1% per month or part thereof.
- Period for interest calculation:
From the date on which TDs was deductible till actual date of deduction.
- Suppose, TDs of April month is deducted on 9th June, then interest will be levied from April to June.
- Interest will be calculated on TDs amount.
- For interest calculation, part of month is considered as full month.
| S. No. | Particulars | Amount |
| 1 | Professional fees for the month of April | 10,00,000 |
| 2 | TDs liability | 1,00,000 |
| 3 | Liability for deduction of TDs | In April month |
| 4 | Actually deducted | In June month |
| 5 | Interest rate | 1% |
| 6 | Liability of interest | 3,000 ** |
** Interest calculation 1,00,000 * 1% * 3 months = 3,000
11. Interest on late payment of TDs:-
- If TDs is deducted but not deposited on time then interest liability will arise @1.5% per month or part thereof.
- Period for interest calculation:
From the date on which TDs was deducted till actual date of payment.
- Suppose, TDs of April month is deducted on 30th April, but deposited on 10th June then interest will be levied from April to June.
- Interest will be calculated on TDs amount.
- For interest calculation, part of month is considered as full month.
| S. No. | Particulars | Amount |
| 1 | Professional fees for the month of April | 10,00,000 |
| 2 | TDs liability | 1,00,000 |
| 3 | Liability for deduction of TDs | In April month |
| 4 | Actually deducted | In April month |
| 5 | Due date of payment | 7th May |
| 6 | Actual date of payment | 10th June |
| 7 | Interest rate | 1.5 % |
| 8 | Liability of interest | 4,500 ** |
** Interest calculation 1,00,000 * 1.5% * 3 months = 4,500
12. Allowance or disallowance of interest:-
Interest is disallowed under IT Act. Assessee cannot claim such interest as an expense.
13. Deferred tax on interest:-
It is a type of permanent difference. Hence, no deferred tax is created on interest.
14. List of sections:-
- 194J: Professional or technical services
- 194C: Payments to Contractors
- 194: Dividend
- 194A: Interest other than securities
- 194H: Brokerage
- 194D: Insurance commission
- 193: Interest on securities …..
15. List of sections which is not covered under 26Q:-
-
- 194IA: Purchase of immovable property
- 194IB: Rent payment by individual or HUF
- 194IC: Payments under Joint Development Agreements
- 194M: Payment of certain sums
- 194S: Virtual digital asset
For the following sections, Form 26Q is not applicable. Instead, specific forms are prescribed.
16. Various forms applicability:-
| Sr. No. | Section No. | Nature | Applicable Form |
| 1 | 194IA | Purchase of immovable property | 26QB |
| 2 | 194IB | Rent payment by individual or HUF | 26QC |
| 3 | 194IC | Payments under Joint Development Agreements | 26QC |
| 4 | 194M | Payment of certain sums | 26QD |
| 5 | 194S | Virtual digital asset | 26QE or 26Q |
In above mentioned sections, Form-26Q will not be applicable.
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Disclaimer: The views expressed in this article are solely those of the author and are intended for general informational purposes. This content does not constitute professional tax or legal advice. Readers are advised to consult with a qualified professional before taking any action. The author will not be liable for any loss or damages arising from reliance on the information provided.
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