Form 26QC - Steps to file Form 26QC Online

The TDS deducted needs to be paid within a period of 30 days from the end of the month - where the tax was deducted. It could be accompanied by a challan (cum) statement in Form 26QC. The TDS so deducted could be paid to the government electronically through the RBI, State Bank of India, or any other authorized bank. 

What is Form 26QC?

26QC Form is a quarterly statement of deduction of tax u/s 200(3) of the income tax act in regards to the salary for the end of the quarter. 

Details of the salary paid to employees and TDS deducted on such payment are to be reported in 24Q. With it, if the deductor has either not deducted or deducted at a lower rate - and the reasons are also to be mentioned in the Form.

It has two annexures. Annexure I has the information of challan with deductee break up of TDS, while Annexure II has the information of the salary paid/credited for the relevant financial year and net tax payable.

Form 26QC Explained

Form 26QC is a quarterly statement of deduction of tax under Section 200(3) of the Income Tax Act in regard to payments other than the salary for the end of the quarter.

Who Has to File Form 26QC?

The tenant of the property - who is making rent payments to the resident landlord, has to file the Form. TDS is deducted at 5% on the total rent payments that are made by the tenant.

When to File Form 26QC?

The due date of the payment of TDS on the rent is 30 days from the end of the month when the deduction is made.

However, the tenant could file Form 26QC within 30 days from - the end of the financial year or the day on which the property is vacated or the rent agreement terminated.

Form 26QC Online Payment

Here are the steps to file Form 26QC online:

  • Step 1: You will have to visit the TIN website by clicking on the link. In the menu bar of the portal, you would have to select TDS on rent of property under the services menu.
  • Step 2: After selecting TDS on the rent of property, scroll down the page and choose the online Form to furnish the TDS on the property.
  • Step 3: Under the e-payment of the taxes, you will have to choose TDS on rent of property and then click proceed.
  • Step 4: Form 26QC has four parts; you will have to read out every particular and need to fill in the details with accuracy.

Form 16 as Certificate for TDS Deduction to Payee

The Indian government has introduced a new TDS certificate, Form 16C. It shows how much TDS was taken from the rent by the person/HUF at a rate of 5% (under Section 194IB). It is very similar to Form 16 or Form 16A, which are used to report salaries or other payments, respectively.

Within a period of 15 days of the due date for supplying the challan cum statement in Form 26QC, the person deducting the TDS from the rent must provide Form 16C to the payee.

The Penalty of Not or Late Filing Form 26QC

There are penalties for filing Form 26QC late:

1) You are liable to pay 1% interest for each month of delay in deducting the tax. The penalty is higher at 1.5% for a month if the tax has been deducted but not deposited.

2) If Form 26QC was not filed within one year after the date of due, a penalty that ranges from Rs. 10,000 to Rs. 1,00,000 would be levied on the tenant.

3) Late filing of Form 26QC attracts a late fee of Rs. 200 for a day. For the delay in issuing Form 16C, the penalty is Rs. 100 per day.

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