India’s Tax Authority Extends TDS Filing Deadline for Non-Salary Transactions to Nov. 30

Posted by Written by Naina Bhardwaj Reading Time: 3 minutes

The deadline for filing the Q2 2022-23 TDS in Form 26Q is extended by a month to November 30, 2022 to give more time to taxpayers facing difficulties using the new reporting template. 

On October 27, 2022, the Central Board of Direct Taxes (CBDT) extended the deadline for filing the quarterly TDS (tax deducted at source) statement in Form 26Q for the second quarter (Q2) of the financial year (FY) 2022-23 by a month – till November 30, 2022. Earlier, the last date to file TDS in Form 26Q was October 31, 2022.

The extension is applicable to those entities and persons as well as partners of firms whose books of accounts need to be audited.

Why has the deadline been extended?

The CBDT explained that deadline was extended due to difficulties faced by taxpayers in filing the TDS statement in the revised and updated Form 26Q.

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Taxpayers had flagged a number of technical issues, including challan (invoice) mismatches, challan verification failures, and auto adjustments of challans, which made it impossible to file a TDS return on Form 26Q.

It must be noted that no such relaxation is offered for filing TDS returns that apply to transactions involving salaries (Form 24Q) and non-residents.

What is Form 26Q?

Form 26Q is for quarterly filing of TDS returns on payments other than salary. It gives the details of total amount paid and tax deducted on such payments during the quarter.

Non-salary transactions include payments on account of interest on securities, dividend, winnings from lotteries and crossword puzzles, rent, interest other than interest on securities, and fees for professional or technical services. The income of freelancers is also shown in Form 26Q.

Relevant Income-tax Act, 1961 sections covered in Form 26Q

  • 193 – Interest on securities
  • 194 – Dividend
  • 194A – Interest other than interest on securities
  • 194B – Winnings from lotteries and crossword puzzles
  • 194BB – Winnings from horse race
  • 194C – Payment of contractor and subcontractor
  • 194D – Insurance commission
  • 194DA – Maturity of life insurance policy
  • 194EE – Payment in respect of deposit under national savings scheme
  • 194F – Payments on account of repurchase of units by mutual funds
  • 194G – Commission, prize etc., on sale of lottery tickets
  • 194H – Commission or brokerage
  • 194I(a) – Rent
  • 194I(b) – Rent
  • 194J – Fees for Professional or technical services
  • 194K – Income in respect of units
  • 194LA – Payment of Compensation on acquisition of certain immovable property
  • 194LBA – Certain income from units of a business trust
  • 194LBB – Income in respect of units of investment fund
  • 194LBC – Income in respect of investment in securitization trust
  • 194N – Payment of certain amounts in cash
  • 194O – Payment of certain sums by e-commerce operator to e-commerce participant
  • 197A – Details of payment where there is no deduction of tax in certain cases

Details to be mentioned in Form 26Q

Unlike Form 24Q, which contains two annexures, Form 26Q contains only one annexure. Challan details (BSR code, date of payment, total amount etc.) and details of deductor and deductee are to be mentioned. Besides, if the deductor has not deducted TDS or has deducted it at a lower rate, the taxpayer must mention the corresponding reasons in the form. 

Due date of filing 26Q

Quarter

Due date

April to June (Q1)

July 31

July to September (Q2)

October 31

October to December (Q3)

January 31

January to March (Q4)

May 31

What is the penalty for late filing of Form 26Q?

  • Late filing fees: Under section 234E, a fine of INR 200 per day is to be paid until the return is filed. This amount has to be paid for each day until the total fine becomes equal to the TDS amount. 
  • Penalty under section 271H: In addition to fees to be paid under section 234E, the assessment officer may charge the penalty of minimum INR 10,000 and maximum INR 1,00,000. However, no penalty will be charged under section 271H if:
    a) TDS is deposited to the government
    b) Late filing fees and interest (if any) is also deposited
    c) Return is filed before expiry of one year from due date

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