Form 26QC – Steps to File TDS Online

Introduction

Form 26QC is a tax compliance requirement in India used by tenants who pay rent above certain thresholds and need to deduct Tax Deducted at Source (TDS) before making the rent payment. This online filing process ensures that TDS is deposited with the government correctly and on time, helping both tenants and landlords stay compliant with Indian tax regulations under the Income Tax Act. Understanding how to file Form 26QC, what details are needed, and key dates can make this task straightforward and stress-free.

What is Form 26QC?

Form 26QC is a challan-cum-statement used for depositing TDS on rent payments under Section 194-IB of the Income Tax Act. It combines the tax payment and the statement of deduction into one form that must be filed online through the official Income Tax or TIN-NSDL portal. Whenever rent paid to a resident landlord exceeds ₹50,000 per month, the tenant must deduct TDS and file Form 26QC within the prescribed timelines.

Get instant access to markets—Open Demat account

Who needs to file Form 26QC?

Situation

Filing Requirement

Tenant pays rent of more than ₹50,000/month

Must file Form 26QC

Rent paid below threshold

No TDS or Form 26QC needed

The landlord is a resident

Yes, applicable

PAN details of the landlord are missing

Deduct TDS at a higher rate and file

This form does not require a TAN for most residential tenants. Only PAN details of both the tenant and the landlord are essential.

Step-by-Step guide to filing Form 26QC online

Filing Form 26QC is done entirely online. Here’s a systematic walkthrough of how to complete the process:

1. Visit the Official Income Tax e-Filing Portal

Go to the Income Tax Department’s e-Filing portal (incometax.gov.in) and log in with your PAN and password.

2. Go to the TDS Payment Section

After logging in:

• Choose E-File > E-Pay Tax.
• From the list of tax forms, select Form 26QC (TDS on Rent of Property).

3. Enter Tenant and Landlord Information

You’ll need to enter:

• PAN of the tenant (payer) and PAN of the landlord (recipient).
• Names and addresses of both parties.
• Property details (location, type of property).
• Period of tenancy.

Make sure PAN details are correct so the TDS gets credited properly in the landlord’s account.

4. Enter Rent and TDS Details

Input the following:

• Total rent amount paid or credited.
• Date of rent payment or credit.
• Date of deduction of TDS.
• Amount of TDS deducted (usually 2% of rent if the monthly rent is above ₹50,000, subject to the latest Income Tax rules).

5. Choose Payment Mode

You can pay the TDS amount using:

• Net banking (online payment).
• Visiting an authorized bank with a generated challan (offline payment).

Once the payment is made, you’ll receive an acknowledgement number. Download or save this for future reference.

6. Submit Form 26QC

After filling in all the required details and making the payment:

• Review all information carefully.
• Click Submit to file the form.
• Download the acknowledgement receipt (Challan) and retain it for your records.

Important Deadlines and Due Dates

Requirement

Deadline

TDS Deduction

At the time of payment or credit, whichever is earlier

TDS Deposit + 26QC Filing

30 days from the end of the month when TDS was deducted

Issuing Form 16C to the landlord

Within 15 days from the due date of the 26QC filing

These deadlines help you avoid penalties and interest for delays.

Penalties and Interest for Non-Compliance

Failing to comply with TDS rules and 26QC filing timelines can lead to:

• Interest @1% per month for the late deduction of TDS.
• Interest @1.5% per month for late payment of the deducted tax.
• Late fee of ₹200 per day under Section 234E for delayed filing.
• Penalties if Form 16C is not issued on time.

Staying within timelines avoids unnecessary costs and compliance issues.

After Filing: Issuing Form 16C

After successful filing and payment:

• You must issue Form 16C, a TDS certificate to the landlord.
• It reflects details of rent paid and TDS deposited.
• This must be provided within 15 days of the due date of Form 26QC filing.
• Form 16C can be downloaded from the TRACES portal.

Common mistakes to avoid

Here are some common errors to watch out for:

• Mistyping the PAN details of the tenant or the landlord.
• Incorrect rent amount or deduction date.
• Delayed TDS deposit beyond the deadline.
• Forgetting to issue Form 16C.

Practical Tips for Smooth Filing

• Keep the tenant and landlord PANs ready before starting.
• Have the rent agreement details accessible.
• File within the due date to avoid interest and penalties.
• Download and save acknowledgements and Form 16C for future reference.

These steps streamline the filing process and reduce errors.

Conclusion

Filing Form 26QC correctly and on time is essential when you’re required to deduct TDS on property rent payments in India. Following the step-by-step approach starting from the e-Filing portal login, entering precise details, making timely payment, and issuing Form 16C helps ensure compliance with tax laws under Section 194-IB. By understanding deadlines, avoiding common mistakes, and saving all acknowledgements, tenants can fulfill their tax obligations smoothly and without stress.