In India, Tax Deducted at Source (TDS) returns for all payments other than salaries are filed using Form 26Q, a three-month statement. If the amount exceeds particular requirements, groups that make certain types of payments, such interest, dividends, rent, or professional fees, are required by the Income Tax Act, 1961 to deduct TDS.
- It’s critical to file Form 26Q on time and accurately. Inaccurate information may result in letters and requests from the Income Tax Department, and late filing is penalised.
- The Income Tax Department’s Return Preparation Utility (RPU) or approved TIN facilitation centres must be used to electronically file Form 26Q. After that, the form is submitted via the TIN-NSDL website.
- The types of payments covered by TDS are outlined in a number of sections of the Income Tax Act, including Section 194A for interest, Section 194C for contracts, and Section 194J for commercial fees. For every deduction, the form needs to have the appropriate section code on it.
- Form 26Q must be submitted by any person or organisation that makes payments that aren’t salary and are liable to TDS. This covers companies, groups, and people who are required to deduct TDS.
- Quarterly Report: Quarterly filings of Form 26Q are required. The due dates are:
- Quarter 1 (April–June): July 31
- Quarter 2 (July–September): October 31
- Q3: October–December: January 31st
- Q4: May 31st (January-March)
- Information Needed: The form asks for information about the type of payment, the total amount of TDS deducted and deposited, the organisation making the payment, and the person receiving the payment. It also contains the information from the fee used to deposit TDS with the government.
