Form 26Q –
Quarterly Non-Salary TDS Return, Due Dates, Form 16A Generation & Corrections
Form 26Q is the quarterly non-salary TDS return filed by every deductor on the TRACES portal. It covers TDS on rent, contractor fees, professional fees, interest, commission, and dozens of other non-salary payments — and each Form 26Q filing drives Form 16A generation for every deductee's tax credit.
Overview
What Is Form 26Q? The Non-Salary TDS Return Explained
Form 26Q is the prescribed quarterly TDS filing for non-salary payments. The deductor files it after every quarter on the TRACES portal, and each deductee's Form 26AS receives the TDS credit directly from this return. Form 26Q covers every TDS section except salary under Section 192 — including Sections 193, 194, 194A through 194S, and many others. A single return can consolidate rent under 194I, professional fees under 194J, and contractor payments under 194C side by side.
Every deductor making non-salary payments must file Form 26Q — whether individual, firm, company, or trust. The deductor needs a valid TAN, must deduct TDS wherever a section applies, and must file the quarterly return on time. For example, a business paying office rent above ₹2.4 lakh annually must file Form 26Q every quarter. New deductors need a TAN before any deduction — our TAN Registration service covers the full onboarding.
N D Savla & Associates handles complete Form 26Q filings for businesses, firms, trusts, and individuals — mapping every payment to the correct section, preparing challans, and tracking every Form 26Q due date. Our service connects with our TDS Return Filing, Form 24Q, TDS & Tax Liability, and Income Tax E-Filing services.
Form 26Q at a Glance
The Fixed Filing Calendar
Form 26Q Due Dates & the Quarterly Filing Calendar
The Income Tax Rules set every Form 26Q due date on a fixed calendar — missing a date triggers Section 234E late fees automatically from day one. Tracking all four quarters and the Form 16A issue dates is the core operational discipline for every TDS deductor.
| Quarter | Period Covered | Form 26Q Due Date | Form 16A Issue Date |
|---|---|---|---|
| Q1 | April – June | 31 July | 15 August |
| Q2 | July – September | 31 October | 15 November |
| Q3 | October – December | 31 January | 15 February |
| Q4 | January – March | 31 May | 15 June |
Section 234E late fees stack daily — and Section 271H penalty follows for extended delays: Section 234E imposes ₹200 per day of delay from the very first day, capped at the total TDS amount for that quarter. For delays exceeding one year, Section 271H penalty ranges from ₹10,000 to ₹1,00,000 on top. The fee applies regardless of whether TDS was correctly deducted and deposited — it's a pure procedural late fee. On-time quarterly filing is therefore always the cheapest option, even over weekends and holidays.
Section-Wise Scope
Common TDS Sections Reported in Form 26Q
Form 26Q covers dozens of TDS sections, each with distinct rates, thresholds, and compliance rules. Accurate section mapping is critical — an incorrect section on the return triggers PAN-level mismatches in Form 26AS and delays the deductee's TDS credit. Six sections together account for the vast majority of non-salary TDS volume.
Contractor & Sub-Contractor Payments
1% for individual/HUF deductees, 2% for companies and firms. Threshold: ₹30,000 per single contract or ₹1 lakh aggregate per year. Covers most outsourced work — advertising, logistics, event management, job-work contracts, and services billed on a per-contract basis.
Professional Fees & Technical Services
10% standard rate; drops to 2% specifically for technical services and call-centre services. Threshold: ₹30,000 per payment type per year. Applies to consultants, lawyers, doctors, chartered accountants, engineers, and every fee-based professional engagement.
Business Rent Payments
10% on land, building, or furniture rent; 2% on plant and machinery rent. Threshold: ₹2.4 lakh per annum. Applies to any business entity paying rent above the threshold — office leases, warehouse rentals, equipment hire, and commercial property tenancies.
Individual Tenant Rent
2% on rent above ₹50,000 per month — rate revised from 5% with effect from October 2024. Applies to individuals and HUFs paying rent above the threshold. Our TDS on Rent service covers both landlord and tenant sides end-to-end.
Interest (Other Than Securities)
10% on interest payments other than on securities. Banks and NBFCs deduct on fixed-deposit interest above the prescribed threshold. Also applies to unsecured loan interest, inter-corporate deposits, and interest paid by firms to partners above thresholds.
Commission & Brokerage
2% on commission and brokerage payments. Covers sales commissions, dealer incentives, distribution margins paid separately, insurance commissions, and brokerage on securities transactions. Threshold and rate revised in recent Finance Acts — always verify against the current year.
After the Filing — Deductee Certificates
Form 16A Generation After Form 26Q Filing
Form 16A is the TDS certificate for every non-salary deductee — TRACES generates it only after Form 26Q processing is complete. Accurate quarterly filing therefore directly drives timely Form 16A generation, and any error in the return flows through to the certificate. Every deductee needs Form 16A to claim TDS credit in their ITR.
The Form 16A Workflow — From Form 26Q Filing to Deductee Delivery
Form 26Q Processing on TRACES: Once Form 26Q is filed, TRACES cross-checks every entry against the challan register and the deductee PAN database. Valid entries move forward; mismatches flag as defaults. Processing typically completes within a few days of a clean filing.
Auto-Generation of Form 16A Per Deductee: TRACES auto-generates Form 16A after processing — pulling the deductee's PAN, payment amount, TDS amount, and challan reference. Every quarter produces a fresh certificate per deductee, showing the quarter, section, and challan details.
Issue to Deductees Within 15 Days: The deductor must issue Form 16A within 15 days of the Form 26Q due date — so Q1 certificates by 15 August, Q2 by 15 November, Q3 by 15 February, and Q4 by 15 June. Late issue delays the deductee's TDS refund claim or ITR filing.
Workflow outcome: Once Form 16A reaches the deductee, the TDS credit is available in their Form 26AS and claimable in their ITR. Any mismatch in the return — wrong PAN, wrong section, wrong challan — blocks the certificate and holds up the deductee's tax credit. Accuracy on the first filing is therefore far cheaper than correcting after deductees complain.
Default Clearance
Common Form 26Q Errors and How to Correct Them
TRACES checks every non-salary TDS return against central records, and mismatches trigger default notices that must be cleared before Form 16A can issue. Error-free filing saves hours of correction work later — but when corrections are needed, the deductor can file a corrected Form 26Q any number of times using the original token number.
PAN Mismatches & Invalid PAN Entries
The most common Form 26Q defect. A wrong PAN marks the entry as invalid, and invalid PAN triggers TDS at 20% under Section 206AA regardless of the deductee's actual section. The deductee's Form 26AS stays unreconciled until correction, and a corrected Form 26Q must be filed to fix the PAN. Our team verifies every PAN against the ITD database before submission to catch typos at the source.
Short Deduction — Under-Withheld TDS
Short deduction means the deductor withheld less TDS than the applicable section required. The shortfall attracts Section 234E late fee plus interest under Section 201(1A) at 1% per month from the payment date to actual correction. Every short-deduction case appears on TRACES as an open default and must be cleared before Form 16A generation — resolution requires depositing the shortfall and filing a corrected return.
Short Payment — Deducted But Not Fully Deposited
Short payment means the deductor deducted TDS from the payee but did not deposit the full amount with the government. This is treated more seriously than short deduction — interest runs at 1.5% per month under Section 201(1A) from the deduction date to actual deposit. The deductor must deposit the balance with interest, then file a corrected Form 26Q reflecting the complete challan.
Filing a Corrected Form 26Q
The deductor can file a corrected Form 26Q at any time — each correction replaces the earlier return entirely and uses the original token number. Corrections can cover challan updates, PAN fixes, payment revisions, or section changes. Multiple corrections are permitted across the year. Our team files every corrected Form 26Q with Income Tax Notice response support when defaults escalate into notices.
Our Services
Our Form 26Q Filing Services at N D Savla & Associates
End-to-end Form 26Q services — quarterly non-salary TDS return filing, PAN verification, Section 194C/194J/194I/194IB/194A/194H mapping, Form 16A generation, Section 234E late-fee computation, corrected Form 26Q filings, and notice response for businesses, firms, trusts, and individuals across India.
Quarterly Form 26Q Filing & Section Mapping
Form 16A Generation & Deductee Issue
Section 234E / 271H Advisory & TRACES Default Clearance
Corrected Form 26Q Filing & Notice Response
Complete Form 26Q Filing Services — Non-Salary TDS Return, Form 16A Generation & Corrections.
Quarterly Form 26Q filing, Section 194C / 194J / 194I / 194IB / 194A / 194H compliance, Form 16A generation and deductee issue, Section 234E late-fee advisory, Section 271H penalty resolution, and corrected Form 26Q filing — for businesses, firms, trusts, and individuals across India.
+91 98190 00511 | +91 91670 58000 | +91 98190 00445 | nainitsavla@savlagroup.in
Contact UsF.A.Q.
Form 26Q is the quarterly non-salary TDS return. Every deductor with a valid TAN files it. Additionally, the return covers TDS on rent, contractor fees, professional fees, interest, and commission. Furthermore, it excludes salary TDS, which goes in Form 24Q. Therefore, most businesses file both Form 26Q and Form 24Q every quarter.
Every Form 26Q due date follows a fixed schedule. First, Q1 is due by July 31. Second, Q2 is due by October 31. Third, Q3 is due by January 31. Finally, Q4 is due by May 31. Additionally, the deductor must issue Form 16A within 15 days of each due date.
Form 24Q covers salary TDS under Section 192. By contrast, Form 26Q covers all other non-salary TDS — rent, contractor fees, professional fees, interest, and commission. Furthermore, Form 24Q generates Form 16 for employees. However, Form 26Q generates Form 16A for non-salary deductees. Additionally, both forms share the same quarterly due dates.
Section 234E late fee is ₹200 per day of delay. Moreover, the total is capped at the TDS amount for that quarter. Additionally, Section 271H penalty may apply for extended delays. Furthermore, the penalty ranges from ₹10,000 to ₹1 lakh. Therefore, on-time quarterly TDS filing is always the cheapest option.
Form 16A generation happens on TRACES after Form 26Q processing. Specifically, it pulls PAN, payment, TDS, and challan data for each deductee. Additionally, the deductor must issue Form 16A within 15 days of the due date. Moreover, every quarter produces a fresh Form 16A. Our TDS Return Filing team manages the full process.
Form 26Q covers every non-salary TDS section. Specifically, it includes Section 194C (contractors), 194J (professional fees), 194I and 194IB (rent), 194A (interest), and 194H (commission). Furthermore, it also covers newer sections like 194Q, 194R, and 194S. Additionally, each section has its own rate and threshold.
Yes. The deductor can file a corrected Form 26Q any number of times. Specifically, each correction uses the original token number. Furthermore, the corrected Form 26Q replaces the earlier filing completely. Additionally, our team handles every corrected Form 26Q alongside Income Tax Notice responses.
