Form 26Q – Quarterly TDS Return for Non-Salary Payments

Accurate Form 26Q Filing for TDS on Contractor, Rent, Professional Fee, Interest, and Other Non-Salary Payments

Form 26Q is the quarterly TDS return filed by every deductor for Tax Deducted at Source on all non-salary payments to resident Indians under Sections 194A to 194S of the Income Tax Act, 1961. It covers the widest range of payment types — including interest on deposits (Section 194A), contractor and subcontractor payments (Section 194C), commission and brokerage (Section 194H), rent on land and buildings (Section 194I), professional and technical service fees (Section 194J), purchase of goods above ₹50 lakh (Section 194Q), benefits and perquisites (Section 194R), and Virtual Digital Asset transactions (Section 194S). Form 26Q is distinct from Form 24Q (salary TDS) and Form 27Q (payments to non-residents).

Accurate Form 26Q filing ensures that all deductees — vendors, professionals, contractors, and landlords — receive correct TDS credit in their Form 26AS, enabling them to claim the TDS in their ITR. Our professionals manage complete Form 26Q compliance, connected with our TDS Return Filing, Form 24Q, TDS Return Preparation, and Lower Tax Deduction Certificate services.

Our Services

TDS Computation — All Non-Salary Sections

Accurate TDS computation for every non-salary payment type — applying the correct rate and section code for each payment category, ensuring correct sub-section coding for 194J (professional vs technical) and 194I (land vs plant).

Form 26Q Preparation Using RPU

Systematic data entry and preparation of Form 26Q using NSDL's Return Preparation Utility — with complete deductee PAN validation, section codes, payment amounts, and challan reconciliation before FVU validation.

Quarterly Filing & Acknowledgement

Timely quarterly filing of validated Form 26Q through TIN-FC or TRACES online portal — generating the provisional receipt number (PRN) and archiving all quarterly returns and acknowledgements.

Form 15G / 15H Management

Management of Form 15G and 15H declarations received from deductees — ensuring TDS is not deducted on qualifying payments and correctly reporting these declarations in Form 26Q as required by CBDT.

Form 16A Certificate Generation

Quarterly generation of Form 16A TDS certificates from TRACES for all non-salary deductees — verified against Form 26Q data before distribution to vendors, professionals, contractors, and landlords.

Correction Statement Filing

Filing of Form 26Q correction statements for errors in previously filed returns — incorrect PAN, wrong section codes, challan mismatches, or wrong TDS amounts — processed through TRACES to update deductee 26AS credits.

Key Sections Covered Under Form 26Q

194A: Interest on FDs, savings, loans — TDS at 10% (threshold ₹40,000/year for banks, ₹5,000 for others)
194C: Contractor payments — TDS at 1% (individual/HUF) or 2% (others) — threshold ₹30,000 per payment or ₹1 lakh/year
194H: Commission and brokerage — TDS at 5% — threshold ₹15,000/year
194I: Rent — 10% on land/building, 2% on plant/machinery — threshold ₹2,40,000/year
194J: Professional fees — 10% (sub-section b); Technical service fees — 2% (sub-section a) — threshold ₹30,000/year
194Q: Purchase of goods above ₹50 lakh — TDS at 0.1% — effective from 1st July 2021

Frequently Asked Questions

What payments are covered under Form 26Q?

Form 26Q covers TDS on all non-salary payments to resident Indians under Sections 194A to 194S. Key sections include: 194A (interest), 194B (lottery), 194C (contractors), 194D (insurance commission), 194H (commission/brokerage), 194I (rent), 194J (professional/technical fees), 194M (contractor payments by individuals/HUFs above ₹50 lakh), 194N (cash withdrawals above ₹1 crore), 194Q (purchase of goods above ₹50 lakh), 194R (benefits and perquisites), and 194S (VDA/crypto transactions).

What is the difference between Section 194J(a) and 194J(b)?

Section 194J was split into two sub-sections effective FY 2020-21. Section 194J(a) covers: fees for technical services (TDS at 2%), royalty on films (2%), and call centre payments (2%). Section 194J(b) covers: fees for professional services (TDS at 10%) — doctors, lawyers, architects, engineers, accountants — and non-compete fees (10%). The threshold for both sub-sections is ₹30,000 per year per payee. Correct sub-section coding in Form 26Q is critical — the deductee's Form 16A will show the corresponding rate, and mismatches can trigger AO notices.

What is Section 194Q and who must comply?

Section 194Q (effective 1st July 2021) requires any buyer whose total sales or gross receipts exceed ₹10 crore in the preceding financial year to deduct TDS at 0.1% on purchases of goods from a resident seller — where aggregate purchases from that seller exceed ₹50 lakh during the year. Section 194Q does not apply where the seller is already collecting TCS under Section 206C(1H) on the same transaction — only one of the two provisions applies. Section 194Q TDS is reported in Form 26Q with the appropriate section code.

What happens if a deductee doesn't have a PAN?

If a deductee does not furnish their PAN, TDS must be deducted at the higher of the rate specified in the relevant section or 20% — as per Section 206AA. The higher TDS rate applies even if the deductee's actual tax liability would be lower. In Form 26Q, deductees without PAN are entered with a default value, and the TDS is reported at the applicable higher rate. Our professionals advise on collecting and validating PANs from all deductees before payments are made.

Can Form 26Q be filed if there were no deductions in a quarter?

Yes — if there were no TDS-liable payments during a quarter, a 'nil' Form 26Q should still be filed if the deductor has a TAN and is registered for TDS. This prevents the system from treating the absence of a return as a default. Some deductors choose to file 'nil' returns for all four quarters to maintain a clean compliance record. Our professionals advise on whether nil returns are required based on the deductor's payment activity.

Form 26Q Filed Accurately — Every Section, Every Quarter

Our TDS experts prepare and file your quarterly Form 26Q covering all non-salary payment sections with PAN validation and Form 16A generation.

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F.A.Q.

What is GSTR-9 and why is it required?

GSTR-9 is an annual GST return that summarizes all transactions reported during the financial year. It is required to ensure proper reconciliation and compliance with GST laws.

Who is required to file GSTR-9?

All regular GST-registered taxpayers are required to file GSTR-9, except composition dealers, casual taxable persons, and non-resident taxpayers.

What is the due date for filing GSTR-9?

The due date is generally 31st December following the end of the relevant financial year, unless extended by the government.

What details are included in GSTR-9?

It includes details of outward supplies, inward supplies, input tax credit claimed, taxes paid, and adjustments made during the year.

Is GSTR-9 mandatory for all taxpayers?

GSTR-9 is mandatory for most regular taxpayers, but certain small taxpayers may get exemptions based on turnover thresholds notified by the government.

What happens if GSTR-9 is not filed on time?

Late filing may result in penalties and late fees, along with potential compliance issues or notices from GST authorities.