TDS on Non-Salary Payments (26Q)

TDS on Non-Salary Payments (26Q)

💼 TDS on Non-Salary Payments – Complete Guide to Form 26Q Filing (FY 2024–25)
Are you paying professionals, contractors, consultants, rent, interest, or commission in the course of your business or profession? If yes, then you must comply with TDS provisions under the Income Tax Act and file Form 26Q every quarter.
Failure to deduct or file TDS properly can result in heavy penalties, disallowance of expenses, and scrutiny notices. With increasing digital transparency, Form 26Q filing is a must for all payers (excluding salary-related payments).
In this blog, we explain what Form 26Q is, who should file, the due dates, penalties, and how our expert team helps you handle your TDS compliance accurately and on time.

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📌 What is Form 26Q?
Form 26Q is a quarterly statement of TDS deducted on all payments other than salary. This includes payments made to:
•    Contractors
•    Professionals
•    Rent to landlords
•    Commission or brokerage
•    Technical service fees
•    Interest (excluding interest on securities)
•    Payments to non-employees
📌 It must be filed by individuals, firms, companies, LLPs, trusts, or anyone responsible for TDS deduction other than for salary.

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👥 Who Needs to File Form 26Q?
You are liable to file Form 26Q if you have deducted TDS while making:
Payment Type    Applicable Section
Contractor payments    194C
Professional/consultant fees    194J
Rent above ₹2.4 lakh/year    194I
Commission/brokerage    194H
Interest other than securities    194A
Technical services    194J
Prize/winning above limit    194B/194BB
✅ Even one TDS deduction in a quarter makes you liable to file Form 26Q.

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📂 What Information Is Required in Form 26Q?
Form 26Q requires:
•    TAN & PAN of the deductor
•    PAN of deductee (vendor, landlord, consultant)
•    Nature and date of payment
•    TDS amount deducted and deposited
•    Challan details (BSR code, CIN, date, amount)
•    Contact details of the deductor
📌 If the PAN of the deductee is not available, TDS must be deducted at a 20% flat rate.

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📅 Due Dates for Filing Form 26Q (FY 2024–25)
Quarter    Period    Due Date
Q1    April – June    31st July 2024
Q2    July – September    31st October 2024
Q3    October – December    31st January 2025
Q4    January – March    31st May 2025
TDS deducted must be deposited by the 7th of the next month in most cases.

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🛠️ How to File Form 26Q
1.    Collect deductee PANs and invoices
2.    Calculate TDS as per the applicable section
3.    Deposit TDS online via Challan 281
4.    Use Return Preparation Utility (RPU) and File Validation Utility (FVU)
5.    Submit the .fvu file on the TIN-NSDL portal or the Income Tax e-filing portal
6.    Download acknowledgment receipt
📌 We manage the entire process for you — from challan matching to return filing and certificate issuance.

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🧾 Documents Required for Form 26Q Filing
•    TAN & PAN of the deductor
•    PAN of each deductee/vendor
•    Nature of payment & section applicable
•    TDS challans (CIN, BSR, date, amount)
•    Payment invoices or agreements
•    TDS computation sheet
•    DSC (if filing with Digital Signature)

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⚠️ Penalties for Non-Filing or Incorrect Filing
Default    Penalty/Interest
Late filing of Form 26Q    ₹200 per day (max up to TDS amount) – Sec 234E
Non-filing after deadline    ₹10,000 to ₹1,00,000 – Sec 271H
Non-deposit of TDS    Interest @ 1%/1.5% per month
Wrong or missing PAN of deductee    TDS @ 20% + disallowance of expenses under Sec 40(a)(ia)
✅ We ensure correct filing, validation, and on-time compliance every quarter.

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💼 Why Choose Us for TDS on Non-Salary Payments (26Q)?
We serve businesses, professionals, startups, property owners, and freelancers with:
•    ✅ PAN/TAN registration & TDS mapping
•    ✅ Quarterly Form 26Q preparation & filing
•    ✅ Challan verification and payment tracking
•    ✅ Vendor-wise TDS summary and Form 16A generation
•    ✅ Corrections and revised return filing (if needed)
📞 Need help with 26Q filing? Let our experts manage your non-salary TDS with 100% compliance.

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🏁 Final Thoughts
Whether you are a small startup paying consultants, a business renting office space, or a landlord receiving commission, Form 26Q is mandatory if TDS is deducted on any non-salary payment.
✅ Avoid penalties and compliance stress. Outsource your Form 26Q filing to our professional team and stay tax-compliant effortlessly.