How to File Form 26QD Online?

Introduction

In the ever-evolving world of taxation, it’s essential to stay informed about the latest updates and procedures. One such crucial aspect of taxation in India is TDS on Rent of Property. Form 26QD is an important form when it comes to file TDS Returns. Specifically, if you encounter a situation where you need to make contractual or professional payments exceeding INR 50,00,000, then you must deduct TDS (Tax Deducted at Source) under section 194M. To do this, you’ll need to file Form 26QD, and in this article, we’ll guide you through the process of filing Form 26QD online.

What is Form 26QD?

Form 26QD is the instrument through which you report and deposit TDS on payments made to resident contractors and professionals. This form ensures compliance with tax regulations and facilitates a smooth flow of contractual and professional transactions. Let’s delve into the step-by-step process of filing Form 26QD online.

Steps to Fill Form 26QD

The new Income Tax e-Filing portal provides a user-friendly interface and streamlines processes to simplify your tax compliance journey.

Click on the “e-Pay Tax | Challans” Option on the Income Tax e-Filing Portal

The journey begins with a visit to the Income Tax e-Filing portal, where you can access a range of tax-related services. Then, under the Quick Links section, you’ll find the “e-Pay Tax | Challans” option. Click on it to proceed.

Continue to the NSDL Website

After clicking, you’ll be shown a dialogue box, click on continue. Then you will be directed to the NSDL website where you’ll initiate the Form 26QD filing process.

Proceed with the Form 26QD Section

Look for the Form 26QD section and then click “Proceed.” This step will take you to the actual form-filling process.

Fill Up the Form with the Required Details and Submit

In this section, provide all the necessary information, including details about the tenant, landlord, TDS, property, and any other required data. Finally, after you complete the form with accurate and comprehensive details, click on the “Submit” option. This signals the completion of the filing process.

Details Required in Form 26QD

To ensure a smooth and accurate filing process for Form 26QD, make sure you have the following details on hand:

• PAN of Deductor/Payer: This is the PAN card of the individual or entity making the payment.
• PAN of Deductee/Payee: The PAN card of the individual or entity receiving the payment.
• Nature of Payment: After that, specify the nature of the payment. State whether it was for work in pursuance of a contract, commission, brokerage, or fees for professional services.
• Date of Contract/Agreement: Provide the date on which the contract or agreement’s date came into being.
• Amount Paid: Clearly state the amount paid in the transaction.
• Number of the Certificate Under Section 197: If applicable, then include the certificate number issued by the Assessing Officer for non-deduction or lower deduction.
• Date of Credit: Indicate the date on which the payment was credited.
• Rate of TDS: Once the rest is done, specify the rate of TDS applicable to the transaction.
• Details of Payment of TDS: Finally, include details related to the payment of TDS, ensuring accuracy and compliance.

What is the Penalty for Filing Form 26QD?

The penalty for incorrect or delayed filing of Form 26QD can vary depending on the specific circumstances. Hence, it’s crucial to file the form accurately and within the specified timeframes to avoid penalties and legal complications.

What is the Periodicity of Filing Form 26QD?

The periodicity of filing Form 26QD depends on your specific transactions and tax obligations. Hence, you should consult with a tax professional or refer to the latest tax regulations to determine your filing frequency.

Conclusion

Filing Form 26QD online is an essential step for individuals and entities making contractual or professional payments exceeding INR 50,00,000. By following the steps outlined in this guide and providing accurate information, you can ensure compliance with tax regulations and facilitate smooth business transactions.