Form 26QD
A summary of Form 26QD
This post will look at Form 26QD: Due Date, Penalty, and Steps for Filling it Out. Let’s look at each section in detail:
What is Form 26QD?
Form 26QD is a challan-cum-return statement used to report and deposit Tax Deducted at Source (TDS) under Section 194M for payments made to resident contractors and professionals.
Who has to file Form 26QD?
Individuals and Hindu Undivided Families (HUFs) who are not required to audit their accounts must file Form 26QD, if TDS is deducted under Section 194M.
According to Section 194M, individuals or HUFs that don’t need to maintain books of accounts must file Form 26QD if they pay more than Rs—50 lakh to a resident for contractual or professional services in a single financial year.
Contractual work includes:
- Catering services
- Broadcasting and telecasting, which includes program production
- Advertisement-related services
- Transportation of goods and passengers (except railways)
- Manufacturing items from customer-provided materials according to their specifications
Professional services include:
- Legal
- Medical
- Engineering
- Architectural
- Accountancy
- Technical consultancy
- Interior decoration
- Other professional services as specified by the government
Steps to fill Form 26QD
After deducting TDS from a required payment, you must deposit the money with the government using Form 26QD. To file this form, take the following steps:
1: Log in to the income tax e-filing portal.
2: Choose the “e-Pay Tax” option from the e-file option.
3: Select New Payment.
4: Select Form 26QD from the options and click ‘Proceed’.
5: Fill out all of the necessary details in the given form. The following details must be filled out in Form 26QD:
- Deductor’s entire name and complete address, including PIN
- Deductor’s mobile number and email address
- Aadhaar number or PAN of the deductor.
- Deductee’s name, address, phone number, and email address
- Aadhaar number or PAN of the deductee.
- Deductee’s PAN category and status.
- The financial year for submitting TDS
- Nature of payment
- Date of the contract or agreement
- Amount paid or credited:
- Date of payment or credit.
- Whether nil or lower deduction under section 197 is applicable.
- Number of certifications issued under section 197
- The total amount paid or credited between April 1st and the end of the month in which the payment was made or credited.
- TDS rate
- Date of TDS deduction
- Mode of payment
- Date of TDS deposit
- Details of TDS payment (amount, interest, fees, total payment)
6: To file Form 26QD, click ‘Submit’.
7: After filling out all of the details, click ‘Continue’.
8: Choose a payment method from the list of options, which include online banking, debit card, pay at the bank counter, RTGS/NEFT, and payment gateways such as UPI and credit cards.
9: After selecting your payment method, click the ‘Continue’ button.
10: After selecting the ‘Pay Now’ option, you will be sent to the payment gateway for the type of payment you selected.
11: After making your payment, you will be directed to the e-filing page. From there, you can obtain the challan-cum-return statement.
Form 26QD Due Date
The due date for filing Form 26QD is 30 days from the end of the month the payment was made. For example, if you paid on May 1, 2024, the TDS payment is due on June 30, 2024. Also, you must deliver Form 16D to the payee within 15 days of completing Form 26QD.
Penalty For Not Filing Form 26QD
If a deductor does not file Form 26QD within 30 days of the month of TDS deduction, they will face penalties. Section 234E of the Income Tax Act charges a Rs. 200 late fine per day until the TDS return is filed.
Additionally, an assessing officer can impose a penalty under Section 271H for late or incorrect TDS returns. This penalty goes from Rs 10,000 to Rs one lakh. However, if the TDS is paid and the return is filed within one year of the due date, the penalty can be avoided.
In short, individuals and HUFs that pay more than Rs. 50 lakh to resident contractors or professionals must deduct and deposit TDS. They must file Form 26QD on time to avoid a heavy penalty for late TDS payments.
Our blog post about Form 26QD is now complete. Please let us know if you have further concerns or queries in the comments area.
FAQs
1. When will I receive my Form 16D?
Ans: The payee will get Form 16D within 15 days of submitting Form 26QD. The payer or deductor will provide it.
2. Who needs to file Form 26QD?
Ans: Individuals and Hindu Undivided Families (HUFs)that make contractual or professional payments above INR 50,00,000 must deduct TDS and file Form 26QD.
3. Where can I file Form 26QD?
Ans: The Income Tax e-Filing Portal is the online site to file Form 26QD.
