Form 26Q is a quarterly statement that businesses and individuals must file to report Tax Deducted at Source (TDS) on payments other than salaries. While Form 24Q handles the tax for your employees, Form 26Q covers almost every other professional interaction, such as paying rent to a landlord, fees to a consultant, or commission to an agent. It serves as a transparent record for the government, ensuring that the tax you deducted from these payments is correctly linked to the recipient's PAN. For the 2025-26 fiscal year staying on top of Form 26Q is crucial, as even a small delay can lead to daily penalties that eat into your business profits.

What Payments Does Form 26Q Cover?

Unlike salary forms, Form 26Q is a multi-purpose return. It handles a wide variety of domestic payments made to resident Indians.

Nature of Payment

Common Section Code

Professional or Technical Fees

194J

Rent on Land or Building

194I

Payments to Contractors

194C

Interest (Other than on Securities)

194A

Commission or Brokerage

194H

Insurance Commission

194D

Partnership Firm Payments to Partners*

194T

*New for 2025: Partnership firms must now use Form 26Q to report salary, bonus, or interest paid to their partners under the new Section 194T.

Filing Deadlines for 2025-2026

Form 26Q must be filed every quarter. The deadline is always the last day of the month following the end of the quarter.

Quarter

Period Covered

Filing Due Date

Quarter 1

April – June 2025

July 31, 2025

Quarter 2

July – September 2025

October 31, 2025

Quarter 3

October – December 2025

January 31, 2026

Quarter 4

January – March 2026

May 31, 2026

Step-by-Step: How to File Form 26Q

The filing process has been streamlined for the 2025-26 cycle to be more user-friendly.

Prepare the Data: Collect details of all non-salary payments, the PAN of the recipients, and the challan numbers of the tax you paid.
Use the Utility: Download the latest Return Preparation Utility (RPU) from the TIN-NSDL website.
Validate the File: Once the data is entered, run it through the File Validation Utility (FVU) to check for errors.
Upload: Log in to the incometax.gov.in portal using your TAN.
Verify: Navigate to e-File > Income Tax Forms > File Income Tax Forms and upload your validated file. Use an EVC (Aadhaar OTP) or Digital Signature to finish.

Penalties for Late Filing (Section 234E & 271H)

The government is strict about these deadlines. If you miss the due date, you will face two types of financial hits.

1. Late Filing Fee (Section 234E)

You will be charged ₹200 per day for every day the delay continues.

The Cap: This total fee cannot exceed the total amount of TDS deducted for that quarter.

2. Heavy Penalty (Section 271H)

If the delay exceeds one year or if you provide incorrect information (like a wrong PAN), the Assessing Officer can levy a penalty ranging from ₹10,000 to ₹1,00,000.

3. Interest on Delayed Payment

1% per month if you didn't deduct tax on time.
1.5% per month if you deducted tax but delayed paying it to the government.

Conclusion

Form 26Q is the backbone of non-salary tax compliance for businesses in India. By accurately reporting your rent, professional fees, and now partner payments under Section 194T, you ensure that your business stays clear of legal notices and high penalties. For the 2025-26 period, the best approach is to reconcile your bank payments with your TDS challans every month. This little and often habit prevents a mountain of work at the end of the quarter and ensures that your vendors and consultants see their tax credits in their Form 26AS without any delay.

Frequently Asked Questions (FAQs)

Is Form 26Q only for businesses?

No. Any individual or HUF required to perform a tax audit must also deduct TDS and file Form 26Q when making specified payments like rent or professional fees.

Can I file Form 26Q if I don't have a TAN?

No. A Tax Deduction Account Number (TAN) is mandatory for filing Form 26Q.

What is the difference between Form 26Q and Form 27Q?

Form 26Q is for payments to Resident Indians, while Form 27Q is for payments to Non-Residents (NRIs) or foreign companies.

What happens if I file with a wrong PAN?

The system will flag it as an error. If not corrected, you may be liable for a penalty under Section 271H for providing incorrect information.

Can I revise a Form 26Q that has already been filed?

Yes. You can file a Correction Statement on the TRACES portal to fix errors in PAN, challan details, or amounts.

Do I need to file Form 26Q if I didn't deduct any tax this quarter?

If no tax was deducted and no payments were made that required deduction, a Nil return is not strictly mandatory, but many professionals recommend filing one to keep your record clean.

Is the ₹200 per day fee avoidable?

No. Once the deadline is missed, the portal will not let you upload the return until the Section 234E late fee is paid via a challan.

Can I use Form 26Q for property purchase TDS?

No. For buying property, you must use Form 26QB, which is a challan-cum-statement.

How do I know if my Form 26Q was successfully processed?

After filing, you will receive an Acknowledgment Number. You can also check the status on the TRACES portal under Statement Status.

What is the due date for the January-March 2026 quarter?

The due date is May 31, 2026.

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