26Q TDS – Non-Salary Payments, Due Date & Filing Rules

Key Insights 

1. If you delay filling the 26Q return, you will be charged a ₹200 penalty each day until the total fine matches the TDS amount you owe.

2. If you fail to comply with 26Q, you may also face an extra penalty between ₹10,000 and ₹1,00,000 under Section 271H.

3. You can avoid the Section 271H penalty if you pay the TDS, any interest due, and file within one year after the deadline.

Do you pay contractors, professionals, or freelancers?

If so, you need to know about the 26qc tds on rent return. Whenever the Form 24Q TDS return is for salaries, Form 26Q is required every quarter to report tax deducted at Source on other payments.

Form 26Q works like a quarterly record for your business expenses that are subject to TDS. Whenever you withhold tax on a payment, you need to record details such as the payee’s PAN, the payment amount, the TDS deducted, and the correct 24q TDS rate. 

Make sure to file it by the 26q tds return due date and use the right 24q TDS format to stay compliant with tax laws and avoid penalties.

Example:

As a business owner, I paid a professional fee of ₹1,00,000 and deducted TDS of ₹10,000 under Section 194J. I reported this in my quarterly 26q tds rates. For salary payments, I filed the form 24Q TDS return separately to stay fully compliant because I know how to file 26q tds return online

Bonus Tip: Enter “Q” if no deduction applies due to payment to an entity specified in clause (x) of sub-section (3) of section 194A.

Who Can File Form 26Q?

The deductor is responsible for submitting Form 26Q to the relevant authority. After deducting TDS, they report the details of these deductions on payments made to residents. These payments can include interest, professional fees, rent, commission, and other non-salary amounts.

Form 26Q applies to various sections like Section 193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194F, 194G, 194H, 194I, and 194J.

Which Payments Does Form 26Q Cover?

Form 26Q covers the following types of payments, where the deductor must deduct TDS:
 

• Rent on Property
• Brokerage or Commission (26QB TDS on sale of property)
• Payment in respect of Life Insurance Policy
• Interest on other than Interest on Securities
• Winning from Puzzles/Lotteries/Games
• Commission, prize, etc., on the sale of lottery tickets
• Commission/Remuneration to the director of the company
• Dividend
• Interest on Securities
• Payment of Insurance Commission
• Payment of Professional/Technical Services
• Payment to Contractors

Form 26q tds section helps deductors report tax withheld from the most common business and service payments.

Penalties for Filing Form 26Q Late

Section 234E imposes a fine of ₹200 for every day your return is late. This daily penalty adds up until it equals the total TDS amount.

Also, under Section 271H, the Assessing Officer may charge a penalty ranging from ₹10,000 to ₹1,00,000.

You can avoid Section 271H penalties if you meet all these conditions:
 

• The TDS has been paid to the government.
• All interest and late filing fees are paid.
• The return is submitted before the expiration of one year from the due date.

Remember to submit Form 26q tds section and pay your TDS dues on time each quarter, because following the schedule helps you avoid financial risks and remain compliant.

How to Download Form 26Q from TRACES?

Here are the steps to download Form 26Q from TRACES.
 

• Go to the official TRACES website.
• Enter your User ID and password to log in. If you are a deductor, use your Tax Deduction and Collection Account Number (TAN).
• In the “Downloads” menu, select either e-TCS or e-TDS.
• Click on “Quarterly Returns,” then choose “Regular.”
• A new page will open, showing the “Form” section.
• Select Form 26Q and click download.

You can easily and securely access Form 26Q on the official TRACES portal. This helps you keep the right documents ready for your quarterly compliance.

Conclusion

If your business pays for things other than salaries, you must file Form 26Q each quarter to report TDS deductions. Submitting it on time with correct information helps you stay compliant and keeps your business running smoothly.

FAQS

How to rectify incorrect TDS in Form 26QC? 

If you need to fix incorrect TDS in Form 26QC, first log in to the TRACES portal. Start a correction request under “Statements/Forms,” pick Form 26QC, and select the right Financial Year or Acknowledgement Number. 

Then, choose “Online” correction to update details such as PAN, amount, or dates, and make sure to verify your submission.

Will there be any issues if we proceed with 1% TDS and let the status of sellers in 26QB be Resident? 

If you are buying property worth more than ₹50,00,000 from an Indian resident, you should deduct 1% TDS and mark the seller as “Resident” in Form 26QB, as required by Section 194IA. This could even result in the seller being taxed twice.

What are the consequences of late filing of TDS returns (Form 26Q), and what are the penalties involved? 

If you file Form 26Q TDS returns late and how to file 26q tds return online, you must pay a fee of ₹200 per day under Section 234E, up to the total TDS amount. This fee must be paid before you can file. If you keep delaying or provide incorrect details, you may face extra penalties under Section 271H, ranging from ₹10,000 to ₹1,00,000.

What are TDS and TDS return?  

TDS, or Tax Deducted at Source, is a system in which the person making payments, such as salary, rent, interest, or fees, deducts a portion of the tax before paying and sends it directly to the government. 

The TDS Return is a statement that the payer files every quarter with the tax authorities. It lists all the tax deductions, payments made, and details about the people who received the payments for that period.

What is the difference between Form 24Q and 26Q?

Form 24Q is used to file TDS returns for salary payments. Form 26Q is used to file TDS returns for non-salary payments.