TDS Return other than Salary Payments (Form 26Q)
This plan enables you to file your quarterly TDS returns related to all specified payments where TDS is required to be deducted, and return is required to be filed via Form 26Q without any hassles. A delay in filing the returns attracts interest and penalty levied by the Tax Department. Hence, paying TDS within the due date is essential, and subsequent return filing is equally crucial.
It usually takes 3 to 5 working days.
- Registration on TRACES
- Form 26Q upto 10 deductees (1 no.)
- Bulk PAN Verification
- Challan Verification
- Online FVU Generation and Submission
- Generation of Form 16A
- Any individual who is required to make a payment other than salary and has to deduct TDS
- Any organisation such as corporate, partnership firm etc required to make specified payments (other than salary) after deduction of TDS
- Any branch of principal business office
- Purchase of plan
- FIll in the details in the template provided
- Upload documents on vault
- Return form prepared by Tax Expert
- Generation of Form 16 & 16A
- Details of deductor
- Details of responsible person
- Details of deductee
- Challan details
- Deduction details
New TDS Section 194R for TDS on Perquisites and Benefits in Business Parlance!
TDS Rate Charts for the FY 2023-24 and FY 2024-25
TDS Rate Charts for the FY 2023-24 and FY 2024-25
Section | Deductee* | Nature of transaction | Threshold Limit (Rs) | TDS Rate |
192 | R, NR | Payment of salary | Basic exemption limit of employee | Normal Slab Rates |
192A | R, NR | Premature withdrawal from EPF | 50,000 | 10% |
193 | R | Interest on securities | Debentures- 5,000 | 10% |
193 | R | Interest on securities | 8% Savings (Taxable) Bonds 2003 or 7.75% Savings (Taxable) Bonds 2018- 10,000 | 10% |
193 | R | Other securities- No limit | 10% | |
194 | R | Payment of any dividend | 5,000 | 10% |
194A | R | Interest from other than interest from securities (from deposits with banks/post office/co-operative society) | Senior Citizens- 50,000 Others- 40,000 | 10% |
194A | R | Interest from other than interest on securities u/s 193 and interest from banks/post office/co-operative society. For e.g., interest from friends and relatives | 5,000 | 10% |
194B | R, NR, FC | Income from lottery winnings, card games, crossword puzzles, and other games of any type | Aggregate income from lottery winnings, card games, crossword puzzles etc- 10,000 Online Gaming - Refer 194BA | 30% |
194BA | R, NR, FC | Income from online games | Nil | 30% |
194BB | R, NR, FC | Income from horse race winnings | 10,000 (Aggregate winnings during a financial year not single transaction) | 30% |
194C | R | Payment to contractor/sub-contractor:- | Single transaction- 30,000 Aggregate transactions- 1,00,000 | |
a) Individuals/HUF | 1% | |||
b) Other than Individuals/HUF | 2% | |||
194D | R | Insurance commission to: | 15,000 | |
a) Domestic Companies | 10% | |||
b) Other than companies | 5% | |||
194DA | R | Income from the insurance pay-out, while payment of any sum in respect of a life insurance policy. | 1,00,000 | 5% (before 1st October 2024) 2% (from 1st October 2024) |
194E | NR, FC | Payment to non-resident sportsmen/sports association | No limit | 20% |
194EE | R, NR | Payment of amount standing to the credit of a person under National Savings Scheme (NSS) | 2,500 | 10% |
194F | R, NR | Payment for the repurchase of the unit by Unit Trust of India (UTI) or a Mutual Fund | No limit | 20% This section is omitted with effect from 1st October 2024 |
194G | R, NR, FC | Payments, commission, etc., on the sale of lottery tickets | 15,000 | 5% (before 1st October 2024) 2% (from 1st October 2024) |
194H | R | Commission or brokerage | 15,000 | 5% (before 1st October 2024) 2% (from 1st October 2024) |
194-I | R | Rent: | 2,40,000 | |
194-I(a) Rent on palnt & machinery | 2% | |||
194-I(b) Rent on land/building/furniture/fitting | 10% | |||
194-IA | R | Payment in consideration of transfer of certain immovable property other than agricultural land. | 50,00,000 | 1% |
194-IB | R | Rent payment by an individual or HUF not covered u/s. 194-I | 50,000 per month | 5% (before 1st October 2024) 2% (from 1st October 2024) |
194-IC | R | Payment under Joint Development Agreements (JDA) to Individual/HUF | No limit | 10 |
194J | R | Any sum paid by way of fee for professional services | 30,000 | 10% |
194J | R | Any sum paid by way of remuneration/fee/commission to a director | 30,000 | 10% |
194J | R | Any sum paid for not carrying out any activity concerning any business; | 30,000 | 10% |
194J | R | Any sum paid for not sharing any know-how, patent, copyright, etc. | 30,000 | 10% |
194J | R | Any sum paid as a fee for technical services | 30,000 | 2% |
194J | R | Any sum paid by way of royalty towards the sale or distribution, or exhibition of cinematographic films | 30,000 | 2% |
194J | R | Any sum paid as fees for technical services, but the payee is engaged in the business of operation of the call center. | 30,000 | 2% |
194K | R | Payment of any income for units of a mutual fund, for example, dividend | No limit | 10% |
194LA | R | Payment in respect of compensation on acquiring certain immovable property | 2,50,000 | 10% |
194LB | NR, FC | Payment of interest on infrastructure debt fund to Non-Resident | No limit | 5% |
194LC | NR, FC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or the issue of long-term bonds | No limit | 5% |
194LC | NR, FC | Payment of interest for the loan borrowed in foreign currency by an Indian company or business trust against the issue of long-term bonds listed in IFSC | No limit | 4% |
194LD | NR, FC | Payment of interest on bond (rupee-denominated) to FII or a QFI | No limit | 5% |
194LBA(1) | R | Certain income distributed by a business trust to its unitholder | No limit | 10% |
194LBA(2) | NR, FC | Interest income of a business trust from SPV distribution to its unitholders | No limit | 5% |
194LBA(2) | NR, FC | Dividend income of a business trust from SPV, in which it holds the entire share capital exempt the capital held by the government, and distribution to its unitholders | No limit | 10% |
194LBA(3) | NR | Rental income payment of assets owned by the business trust to the unitholders of such business trust | No limit | 30% |
194LBA(3) | FC | Rental income payment of assets owned by the business trust to the unitholders of such business trust | No limit | 40% |
194LBB | R | Certain income paid to a unitholder in respect of units of an investment fund | No limit | 10% |
194LBB | NR | Certain income paid to a unitholder in respect of units of an investment fund | No limit | 30% |
194LBB | FC | Certain income paid to a unitholder in respect of units of an investment fund | No limit | 40% |
194LBC | R | Income from investment in securitisation fund received to an individual and HUF | No limit | 25% |
194LBC | NR | Income from investment in securitisation fund received to a domestic company | No limit | 30% |
194LBC | FC | Income from investment in securitisation fund received to a foreign company | No limit | 40% |
194M | R | Certain payments by Individual/HUF not liable to deduct TDS under Section 194C, 194H, and 194J | 50,00,000 | 5% (before 1st October 2024) 2% (from 1st October 2024) |
194N | R, NR | Cash withdrawal exceeding a certain amount | Co-operative society: 3 Crore | 2% |
Others: 1 crore | 2% | |||
194N | R, NR | Cash withdrawal in case person not filing ITR for last three years and the original ITR filing due date expired | - 20 lakh to 1 crore | 2% |
-1 crore | 5% *If cash is withdrawn by a co-operative society the limit shall be Rs 3 Crore instead of Rs 1 Crore | |||
194O | R | Payment for the sale of goods or provision of services by the e-commerce operator through its digital or electronic facility or platform. | 5,00,000 | 1% (before 1st October 2024) 0.1% (from 1st October 2024) |
194P | R | Payment of pension or interest to specified senior citizens of age 75 years or more | Basic exemption limit of senior citizens or super senior citizens | Normal tax slab rates |
194Q | R | Payments for the purchase of goods | 50,00,000 | 0.10% |
194R | R | Perquisite or benefit to a business or profession | 20,000 | 10% |
194S | R | TDS on the transfer of virtual digital assets | Specified Persons- 50,000 | 1% |
Specified persons: Individual or a HUF not having income from business or profession OR | Others- 10,000 | |||
195 | NR | Income on investments made by NRI citizen | No limit | 20% |
195 | NR | Income by way of LTCG referred to in section 115E in the case of NRI | No limit | 10% |
195 | NR, FC | Income by way of LTCG under section 112(1)(c)(iii) | No limit | 10% |
195 | NR, FC | Income by way of LTCG under section 112A | No limit | 10% |
195 | NR, FC | Income by way of STCG under section 111A | No limit | 15% |
195 | NR, FC | Any other income by way of LTCG | No limit | 20% |
195 | NR, FC | Interest payable on money borrowed by the government or Indian concern in foreign currency | No limit | 20% |
195 | NR, FC | Income from royalty payable by the Indian concern or the government, for the copyright in a subject referred in the first proviso of section 115A or computer software referred to in the second proviso of section 115A | No limit | 20% |
195 | NR | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy | No limit | 20% |
195 | FC | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy | No limit | 50% |
If the agreement for such royalty payment is entered after 31st March 1976 | ||||
195 | FC | Income from royalty payable by government or Indian concern in pursuance of an agreement on matters included in the industrial policy | No limit | 20% |
If the agreement for such royalty payment is entered after 31st March 1976 | ||||
195 | NR | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | No limit | 20% |
195 | FC | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | No limit | 50% |
If the agreement for such payment is entered in between 29th February 1964 and 1st April 1976 | ||||
195 | FC | Income from technical fees payable by government or Indian concern in pursuance of an agreement on matters related to industrial policy | No limit | 20% |
If the agreement for such payment is entered after 31st March 1976 | ||||
195 | NR | Any other income | No limit | 30% |
195 | FC | Any other income | No limit | 40% |
196B | NR, FC | Income (including LTCG) from units of an offshore fund | No limit | 10% |
196C | NR, FC | Income (including LTCG) from foreign currency bonds or GDR of an Indian company | No limit | 10% |
196D | NR, FC | Income (excluding dividend and capital gain) from Foreign Institutional Investors. | No limit | 20% |
206AB | R | Payment to non-filers, i.e. those who have not filed their income tax return in the last year Non-filers do not include: - People who are not required to file their ITRs - NRs who do not have a PE in India | No limit | - 2 times the rate given in the Income Tax Act or Finance Act or |
206AA | R, NR, FC | TDS rate in case of Non availability of PAN | No limit | Rates specified above or 20%, whichever is higher |
*”R” denotes Resident,
“FC” denotes Foreign company, and
“NR” denotes Non-Resident.
Note:
- The Normal slab rates from FY 2023-24 for individuals and HUF have changed under the new tax regime. from FY 2023-24 for individuals and HUF have changed under the new tax regime.
- Applicable surcharge and health and education cess shall be deducted in addition to the TDS rates deducted for NRI and FC deductees.
- In the above TDS rate chart, the ‘Resident’ payee under the column ‘TDS deducted’ includes domestic companies.
- All TDS amendments introduced in Budget 2023 have been included in the TDS chart above.
Details to be mentioned in 26Q
As against 24Q which contains 2 annexures, Form 26Q contains only one annexure. Challan details (BSR code, date of payment, total amount etc.), details of deductor and deductees are to be mentioned. Along with this, if the deductor hasn’t either deducted TDS or deducted it at a lower rate, reasons are also to be mentioned in the form.
Due Date to file Form 26Q
April to June - 31st July
July to Sept - 31st Oct
Oct to Dec - 31st Jan
Jan to Mar - 31st May
Rate of Interest on delayed payment of TDS
If TDS is not deducted – 1% per month, from due date of deduction to actual date of deduction.
Penalties for late filing of Form 26Q
Late Filing Fees – under section 234E, a fine of Rs. 200 per day is to be paid until the return is filed. This amount has to be paid for each day until total fine becomes equal to the TDS amount. The penalty under 271H – In addition to fees to be paid under 234E, AO may charge the penalty of minimum Rs. 10,000 and maximum Rs. 1,00,000/-
No penalty will be charged under 271H if –
- TDS is deposited to the government
- Late filing fees and interest (if any) is also deposited,
- Return is filed before expiry of 1 year from due date
Remember these points
- Verify all the PAN numbers,
- Verify the challans, and try to match them through OLTAS or NSDL
- Signed Form-27A is to be filed with the TDS return
Q. What is TDS in salary and other payment?
TDS, or Tax Deducted at Source, is a tax levied by the Indian government wherein taxes are collected based on 'pay as you get'. The taxes are deducted at payment sources such as salary paid to an employee or other commissions earned by a broker. The employer deducts the taxes before making the payment to the employee and is deposited with the govt. The employer later issues form 16 to its employees and form 16B to other deductees, which serves as proof of tax payment in their hands.
Q. Is their any interest and penalty for non or late filing of Form 24Q & Form 26Q?
In case you have not deposited TDS by the due date, the following penalties are applicable:
👉 Late filing fee (if you do not file by the deadline)
👉 Interest (if you do not deposit the TDS amount in time)
👉 Penalty (if TDS is not filed within one year of the due date)
Q. Do all deductors require to quote their PAN?
It is compulsory to quote the PAN for non-Government deductors, whereas "PANNOTREQD" has to be mentioned on the form in the case of Government deductors.
Q. What is form 26Q?
Form 26Q is submitted for TDS details on all payments other than salary every quarter by the deductor. Form 26Q is applicable for TDS deducted under section 200(3) of the Income Tax Act for TDS under sections 193 & 194 being interest on securities, Dividend securities, professional fees, directors' remuneration etc.
Q. When is online return mandatory?
For certain people, it is compulsory to submit the quarterly return online if the deductor is: A Government office A company’s principal officer Assessee who Is required to have their accounts audited for the prior year under 44AB of the Income Tax Act, 1961. Suppose there are 20 or more records of deductees in a statement for any quarter of a particular financial year. TAXAJ Experts will guide you on the same.