Form 26QC is essential for reporting Tax Deducted at Source (TDS) on rent payments to landlords. It ensures compliance with TDS requirements and timely payments to the government. Here’s a breakdown of Form 26 QC, who should file it, and how to do it online.
Form 26QC is a quarterly statement used to report TDS on rent payments. According to Section 200(3) of the Income Tax Act, Form 26 QC applies to tenants paying rent to resident landlords. Taxpayers must file this form within 30 days from the end of the month in which they deduct TDS, ensuring timely compliance and accurate record-keeping.
A tenant paying rent of ₹50,000 or more per month to a resident landlord must file Form 26 QC and deduct TDS at 5% of the total rent amount.
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Tenants must file Form 26 QC within 30 days from the end of the month in which they make the rent payment and deduct TDS. Here are the typical filing deadlines:
Filing Form 26QC online is simple. Here’s how to do it:
Note: To confirm payment, you can use the “Challan Status Inquiry” feature on the EASIEST portal.
Form 16C is issued to the landlord by the tenant after deducting TDS from rent. It is similar to Form 16 or Form 16A but applies specifically to rent payments. Tenants must issue Form 16C within 15 days of filing Form 26 QC.
Failing to file Form 26 QC on time incurs penalties:
Form 26QC simplifies TDS compliance on rent payments. Tenants paying significant rent must complete this process to avoid hefty penalties. Following the steps outlined ensures timely payments and maintains a clean record with tax authorities.
Tenants paying rent exceeding ₹50,000 to a resident landlord must file Form 26QC to report TDS on rent.
Form 26QC should be filed within 30 days from the end of the month in which TDS is deducted.
Form 16C is a TDS certificate issued by the tenant to the landlord, indicating the tax deducted on rent at 5%.
Late filing incurs a penalty of ₹200 per day and potential fines ranging from ₹10,000 to ₹1,00,000.
No, Form 26QC must be filed online through the TIN NSDL portal for streamlined processing.
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