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Form 26QD: TDS on Contractual and Professional Payments

by | May 21, 2024 | Income Tax | 0 comments

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Important Keyword: Form 16D, Form 26QD, Income Tax Website, Section 194M.

Form 26QD: TDS on Contractual and Professional Payments

The Central Board of Direct Taxes (CBDT) announced that from September 1, 2019, individuals and Hindu Undivided Families (HUFs) making contractual or professional payments must deduct Tax Deducted at Source under section 194M if the total payment exceeds INR 50,00,000 in a financial year. The TDS rate is 5%, and the deducted TDS should be reported using Form 26QD. The recipient of the payment will receive Form 16D as proof of TDS deduction.

For example, if a person pays a professional INR 55 lakh on July 20th in a financial year, they must deposit the deducted tax with the central government by August 30. Additionally, they need to issue the Tax Deducted at Source certificate (Form 16D) by September 15.

Steps to Fill Form 26QD

  1. Visit the Income Tax e-Filing portal
    Click on the “e-Pay Tax | Challans” option under the Quick Links section.Income Tax e-Filing Portal - Homepage
  2. Click on the “Continue to NSDL Website” option.
    A pop-up message will appear on the screen.Income Tax e-Filing Portal - Pop-up Message
  3. Click on the “Proceed”
    Click on the “proceed” option under the Form 26QD section. NSDL Website - Form 26QD
  4. Fill up the form with the required details like Tenant, Landlord, TDS, Property etc.
    Click on the “Submit” option to complete the process.NSDL Portal - Form 26QD Application

Details Required in Form 26QD

  1. PAN of Deductor/Payer: The Permanent Account Number (PAN) of the person making the payment.
  2. PAN of Deductee/Payee: The PAN of the person receiving the payment.
  3. Nature of Payment: Specify whether the payment is for work under a contract, commission, brokerage, or professional services.
  4. Date of Contract/Agreement: The date when the contract or agreement was signed.
  5. Amount Paid: The total amount paid to the payee.
  6. Certificate Number under Section 197: If applicable, the number of the certificate issued by the Assessing Officer for non-deduction or lower deduction of TDS.
  7. Date of Credit: The date on which the amount was credited to the payee’s account.
  8. Rate of TDS: The percentage of tax deducted at source.
  9. Details of Payment of TDS: Information regarding the payment of the deducted tax to the central government.

Read More: SFT – Statement of Financial Transaction

Web Stories: SFT – Statement of Financial Transaction

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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