How to file Form 26Q?

While many of us link TDS to just salary, it’s actually more than that. So, whether it’s a payment to an individual or any other entity– not limited to just salaries – the person paying, deducts some TDS when they make payments such as commissions, rent, lawyer fees, contractors payments etc.

Now, how do you inform the ITD about all the payments you’ve made and deducted TDS on those payments?

The answer is to file a quarterly TDS return: Form 26Q for payments made other than salary.

:bulb: In this thread, we will learn about Form 26Q, specifically for individuals. Individuals are only required to deduct TDS and file Form 26Q if a tax audit is applicable.

What is Form 26Q?

Form 26Q is a TDS return to report the details for payments made other than salary, such as rent, professional fees, interest, etc. to residents. The deductor needs to deduct TDS and file Form 26Q on a quarterly basis.

:spiral_calendar: Remember:
The due date to file your 26Q Forms for the April-June 2023 quarter has been extended to 30th September 2023 from 31st July 2023.

When to deduct TDS?
Here are some common situations to deduct TDS

  1. Sec 194H: TDS on Commission or Brokerage > Payment exceeds ₹15,000 > TDS at 5%
  2. Sec 194J: TDS on TDS on Professional or technical fee > Payment exceeds ₹30,000 > TDS at 10%
  3. Sec 194C: TDS on Payment to Contractores > Cumulative payment exceeds ₹1 lakh in a FY > TDS at 1% /2% (PAN of the contractor is available)
  4. Sec 194I:TDS on Rent payment > Payment exceeds ₹2.4 lakhs in a FY > 2% for rent on Plant & Machinery and 10% on assets other than Plant & Machinery.

Also, here’s the list of payments covered under Form 26Q.

What is the due date to deposit TDS and file the Form 26Q?

You’re required to deposit the TDS by the 7th of next month, for the particular month in which the TDS has been deducted. However, for the month of March, TDS can be deposited till April 30.

Form 26Q is a quarterly return. It is required to be filed by the end of every quarter.

Quarter Due date
April - June 31st July
July - September 31st October
October - December 31st January
January - March 31st May

How to file form 26Q?
To File a TDS return form 26Q, first, you need to download the RPU utility from NSDL and generate a txt. file.

To download RPU Utility:

  1. Go to the NSDL website
  2. Download the TDS RPU utility, from Download RPU version 4.7
  3. Select the Form 26Q, and click on continue
  4. Enter all the required
    a. Form
    b. Challan
    c. Annex
    d. Annexure I Deductee details
  5. Click on create file to generate txt. file.

Now, you are required to download a CSI file from the NSDL portal or the e-Filing portal, from where you deposited the TDS. The CSI file contains your challan details.

To download CSI File from NSDL:

  1. Visit OLTAS Application
  2. Click on TAN Based View
  3. Enter the TAN number, period, and captcha code
  4. Click on Download Challan File

To download CSI file from e-Filing portal:

  1. Go to Home | Income Tax Department
  2. Login with TAN
  3. Navigate to e-File > e-Pay Tax
  4. Now, on dashboard, navigate to Challan Status Inquiry (CSI) File
  5. Select the period > Filter Challan

After generating a txt. file and CSI file, upload both on the FVU utility and generate the FVU file

To download TDS FVU utility:

  1. Download the utility from e-TDS/TCS Return Preparation Utility (RPU)
  2. In FVU utility, you need to upload txt. file and CSI file > select the path for the generation of error report > validate

Then, the downloaded FVU file needs to be converted into a zip file.

Lastly, in order to file Form 26Q, the prepared zip file needs to be uploaded on the e-Filing portal.

To upload the FVU file on the e-Filing portal:

  1. Go to Home | Income Tax Department
  2. Log in with your TAN
  3. Navigate to e-File > Income Tax Forms > File Income Tax Forms
  4. Click on Let’s Get Started
  5. Select Form > Financial Year and Quarter > Upload type
  6. Upload TDS (.zip) File

:point_right: Do these steps seem a little confusing? Then let’s go through a quick summary

  • The process of filing Form 26Q requires downloading the RPU utility from the NSDL website and generating a txt file from it.
  • After generating the txt file, download a CSI file from the NSDL or e-Filing portal and upload both (txt & CSI file) on the FVU utility.
  • Lastly, convert the FVU file into a zip file and upload it on the e-Filing portal to file Form 26Q.

What is the penalty for late filing of Form 26Q ?

If you fail to file it on time, you are liable to pay a late fee of ₹200 per day till the date Form 26Q is not filed. But note that, the late fee amount cannot exceed the amount of TDS.

Read more about Form 26Q: TDS on other than Salary - Learn by Quicko.

1 Like

Hi…I took a house starting 15 April 2023 for a monthly rent of 52,000. While I have been filing 26QC from May onwards, I have not deducted TDS for 15 days of April nor deposited the same. How should I go about this? Please advise. Thanks

Hey @Rishi1,

26QC needs to be filed annually when your monthly rent exceeds ₹50,000. TDS is to be deducted once in a financial year. It can be either deducted at the time of credit of the rent to the account of the landlord for the last month of the financial year OR the last month of the tenancy if the property is vacated during the year.

In your case, you can deduct the TDS for April along with the TDS of the last month of the financial year and file form 26QC.

You can also book a MEET from the below link, wherein, one of our tax experts can thoroughly guide you and help file form 26QC.

Thanks Surbhi. I am actually deducting TDS every month and filing 26QC on a monthly basis. So while I am covered from May till November, I did not deduct TDS or file 26QC for 15 days of April (rent - 26,000). Hence my query regarding this? If you could please advise. Thanks!

Hwy @Rishi1,

Form 26QC is filed on an annual basis. However, in your case, as the rent for April month does not exceed ₹50,000, you are not required to deduct TDS or file a TDS return for the same.

Hope this helps!

Thanks much Surbhi for the quick response!


Is AO approval required after seller approval for form 26qb correction?

Hey @Rak,

This would depend from case to case.

If you are just changing the PAN of the seller, there’s no need for AO approval. However, in case you are correcting any of the dates or the deposit amount, AO approval may be required.

If AO approval is required, it will be reflected on the TRACES Portal.

1 Like

Thanks for the response. I am correcting the deposit amount. Status is showing pending for AO approval. Do I need to visit the AO for the approval ?

Hey @Rak,

Yes, in this case, you will have to visit the AO.

The assigned AO is in different city. So difficult for me to personally visit. What can be done ?