Form 26QD : TDS on Contractual and Professional Payments

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Maharshi Shah

Form 16D
Form 26QD
Income Tax Website
Section 194M

The CBDT had announced that Individuals/HUFs making contractual or professional payments need to deducted TDS under section 194M from FY 2019-20 (1st Septemeber, 2019). TDS is deducted @ 5% if the payment exceeds Rs. 50,00,000. And TDS Return for the same needs to be filed in Form 26QD. The payee gets Form 16D as proof of TDS Deduction.

Let us take an example: A person has made a payment to a professional of INR 55 Lakh in the Financial Year. The payment is made on July 20th. Hence, the tax deducted by the person must be deposited with the central government on or before August 30. Therefore, the person must also issue the TDS certificate (Form 16D) by September 15.

What is Section 194M?
TDS needs to be deducted under this section if payment of contract or professional fees is made by an individual.
Read More
What is Section 194M?
TDS needs to be deducted under this section if payment of contract or professional fees is made by an individual.
Read More

Steps to Fill Form 26QD

  1. Visit the Income Tax e-Filing portal.

    Click on the “e-Pay Tax | Challans” option under the Quick Links section.Income Tax e-Filing Portal - Homepage

  2. Click on the “Continue to NSDL Website” option.

    A pop-up message will appear on the screen.Income Tax e-Filing Portal - Pop-up Message

  3. Click on the “Proceed” option under the Form 26QD section.

    It will be above Demand Payment for Rent on Property. NSDL Website - Form 26QD

  4. Fill up the form with the required details like Tenant, Landlord, TDS, Property etc.

    Click on the “Submit” option to complete the process.NSDL Portal - Form 26QD Application

Details Required in Form 26QD

FAQs

What is the due date to file Form 26QD?

Form 26QD has to be filed by the 30th of next month of the deduction of the TDS. For example, the TDS of October has to be deposited by the 30th of November of the same year. TDS of November has to be deposited by 30th of the December and not 31st of December.

What is the penalty for late deposit?

Interest @1% is levied if there is a delay in the deduction of TDS. Similarly, 1.5% interest is levied if there is a delay in the deposition of the TDS. Moreover, a late fee of INR 200 per day has to be paid for the late filing of Form 26QD. This penalty cannot be more than the TDS amount.

When will I receive Form 16D?

Form 16D will be given to the payee within 15 days from the date of filing of Form 26QD. It will be provided by the payer/deductor.

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