Aug 307 min read

Downloading and Filling Form 26Q and Form 26QE

The income of an individual or an organisation is subject to TDS, or tax deducted at source, as per the Indian Taxation Code. Before money is credited to the entity's account, TDS is subtracted from its earnings. The Central Board of Direct Taxes, or CBDT, is in charge of and makes decisions about TDS rules and regulations. For each fiscal year, individuals or companies are required to complete TDS forms in accordance with their eligibility. This article provides comprehensive information about the process of downloading and filling forms 26Q and 26QE of the Income Tax Act of 1961.

What is Form 26Q?

Components of Form 26Q

Applicability of Form 26Q

Steps to Download Form 26Q

Steps to File Form 26Q

What is Form 26QE?

Components of Form 26QE

Applicability of Form 26QE

Steps to File Download 26QE

Steps to File Form 26QE

Conclusion

Most Asked Questions

What is Form 26Q?

The TDS declaration on various payments other than salary is Form 26Q. The total amount paid in a quarter, along with the amount of TDS deducted from those payments, must be reported by the deductor on Form 26Q. It is necessary to have his or her Tax Deduction Account Number (TAN) in order to submit this form. Form 26Q, which is required to be filed by the depositor, is used to deduct taxes at source under the Income Tax Act of 1961 Sections 193, 194, 194A, 194B, 194BB, 194C, 194D, 194EE, 194F, 194G, 194H, 194I, and 194J. The due dates by which Form 26Q is to be filed are as follows:

April to June- 31st July
July to September- 31st October
October to December- 31st January
January to March- 31st May

Components of Form 26Q

Form 26Q is divided into four parts and an appendix. The TAN, PAN, financial year and kind of deductor are requested in the first section. In the second and third parts, you must enter the information about the deductor and the person in charge of the tax deduction. The specifics of the taxes paid and withheld are requested in the fourth column. Lastly, the deductee's information is requested in the fifth, or annexure, part.

Applicability of Form 26Q

Form 26Q is employed for the following functions:

Must be submitted for TDS on all payments, excluding salaries.
Allows for the tax deduction at source of income from professional fees, dividend securities, interest on securities, director's compensation, and other sources.
Under sections 193, 194, and 200 (3) of the Income Tax Act, deductors are required to file form 26Q on a quarterly basis.
When submitting form 26Q, government and non-government deductors are required to quote "PANNOTREQD" and their PAN, respectively.

Steps to Download Form 26Q

Step 1: You must first go to https://www.tdscpc.gov.in/app/login.xhtml, the official TRACES website.

Step 2: To log in, enter your password, User ID, and (for deductors) TAN.

Step 3: Choose e-TCS or e-TDS from the drop-down menu on the "Downloads" tab.

Step 4: Next, choose "Quarterly Returns" from the menu and press "Regular."

Step 5: After that, you'll be taken to a new page where the "Form" part is visible.

Step 6: From this section, choose Form 26Q, then click "Download."

You must follow the same steps but select form number 26QE if you would want to download form 26QE.

Steps to File Form 26Q

Step 1: Enter your password and TAN to log into the e-filing portal.

Step 2: Select "e-file" and then "Income Tax Forms" before submitting the forms.

Step 3: Select 'File Now' to submit your quarterly TDS return online.

Step 4: Select 'Let's get started' in this step.

Step 5: Choose the type of form, the financial year, the quarter, and the upload format. After attaching the Zip file, continue with the e-verification.

Step 6: To confirm e-verification, click "Yes."

Step 7: Fill out the e-verification and send the form using any available option.

What is Form 26QE?

Form 26QE serves as a TDS challenge-cum-statement under Section 194S. This form is sent to Virtual Digital Asset (VDA) or cryptocurrency users by the Income Tax Department of India. It functions as a statement or receipt for the TDS that was withheld. This form must be submitted by the person in charge of tax deduction under section 194S. The payee must receive the certificate of tax deduction at source in Form 16E from the payee within 15 days before the deadline for submitting the challan-cum-statement in Form 26QE. Form 26QE must be submitted within 30 days of the end of the month in which tax is withheld. For instance, Form 26QE needs to be submitted by February 28 if rent is paid in January and taxes are withheld from it.

Components of Form 26QE

The deductee, deductor, and VDA transaction details are all included in this form. These include:

PAN and the buyer's name
PAN and seller's Name
Buyer and seller's address, phone number, and email address
Total Worth of the VDA's Consideration
Date of VDA transfer
Date of TDS and date of payment of consideration of VDA deduction
Whether money is given in kind or in return for another VDA
Your bank information to process a payment

Applicability of Form 26QE

Form 26QE is sent to cryptocurrency users by the Income Tax Department of India. It functions as a statement or receipt for the TDS that was deducted. This form also serves as a statement for cryptocurrency transactions and a challan for the deductor and the deductee, making it useful in two ways.

Steps to File Download 26QE

Use the Income Tax portal to download Form 26QE by completing the instructions listed for downloading Form 26Q. To begin, simply select Form 26QE during the download process.

Steps to File Form 26QE

Step 1: First, go to the income tax e-filing portal and log in.

Step 2: From the e-file option, choose "e-Pay Tax."

Step 3: Select "New Payment" in the next step.

Step 4: Select Form 26QD from the list of choices, then click "Proceed."

Step 5: Complete the provided form with the necessary information. Form 26QD must be completed with the following information:

Full name and address of the deductor with PIN
Mobile number and email ID of the deductor
PAN or Aadhaar number of the deductor
Name, address, mobile number, and email ID of the deductee
PAN or Aadhaar number of the deductee
PAN category and status of the deductee
The financial year for TDS filing
Nature of payment
Contract or agreement date
Date of payment or credit
Amount paid or credited
Whether nil or lower deduction as per Section 197 is applicable
Number of certificates issued as per 197
Aggregate of payment/credit from 1st April to the end of the month when the payment has been credited
Date of TDS deduction
TDS rate
Payment mode
Details of TDS payment
Date of TDS deposit

Step 6: To file Form 26QD, click "Submit."

Step 7: After entering all the information, click "Continue."

Step 8: Choose a payment method from the list of available choices, which includes credit card, debit card, pay at the bank counter, RTGS/NEFT, online banking, and payment gateways that accept UPI and credit cards.

Step 9: After choosing your payment method, click "Continue."

Step 10: Choose "Pay Now." You will be taken to the payment gateway for the method of payment you have chosen.

Step 11: You will be taken to the e-filing page after completing the payment. You can then download the challan-cum-return statement from that location.

Conclusion

In summary, people and organisations involved in financial transactions subject to TDS must understand the significance of Form 26Q and Form 26QE. Following the guidelines, getting the form correctly, and turning it on time will help to guarantee a simple, trouble-free procedure that maintains you in conformity with tax laws.

FAQ

Q1. What is the TDS rate under Section 194S?

A 1% deduction of the consideration is required for taxes. Tax must be withheld at the rate of 20% if the payee fails to provide their PAN.

Q2. What is the purpose of filing Form 26Q?

The primary purpose of Form 26Q, a TDS return form, is to deduct tax at source from a variety of payments, with the exception of salaries. To report specifics of TDS deducted and deposited with the Income Tax Department, the deductor files it on a quarterly basis.

Q3. What is the penalty for not filing Form 26Q?

As per section 234E, till the return is filed, a fine of Rs. 200 per day must be paid. Until the total fine equals the TDS amount, this amount must be paid each day. As per the punishment under 271H, the AO may impose a penalty of a least of Rs. 10,000 and a maximum of Rs. 1,00,000, in addition to the fees required under 234E.

Q4. How can you file Form 26Q without PAN?

Go to Form 26Q and select Deduction details under the relevant Quarter to start the process. Choose the relevant part and the deductee/customer from the popup that appears. Incorporate the payment date and amount as well. The TDS to be deducted is 20% since the deductee PAN is unavailable or invalid.

Q5. What is TDS on Virtual Digital Assets?

India made a big shift to its tax laws in February 2022 when it imposed a flat 30% tax on the proceeds from virtual digital assets (VDAs) and a 1% Tax Deducted at Source (TDS) on VDA transfers. Additionally, set-off and carry-forward of losses were prohibited under the budget.

Q6. What is the purpose of filing Form 26QE?

Form 26QE serves as a TDS challenge-cum-statement in accordance with Section 194S. This form is sent to cryptocurrency users by the Income Tax Department of India. It functions as a statement or receipt for the TDS that was withheld.