Form 26QC is the challan-cum-statement in respect of TDS on rent under section 194-IB of the Income-tax Act, 1961. It can be downloaded from TIN- NSDLwebsite.
What is Form 26QC?
You need to deduct TDS on rent paid to the landlord when the monthly rent exceeds Rs.50,000. It is now your responsibility to deposit the same with the tax authorities. This can be done by filling a form, namely Form 26QC.
When do I need to fill Form 26QC?
You need to submit Form 26QC within 30 days of deducting TDS from the rent you have paid to your landlord. Do note, if your rental agreement states quarterly payments to your landlord then you need to fill and submit Form 26QC within 30 days of deducting the TDS once every quarter. The rule is related to when you pay the rent and deduct the TDS and not a calendar. Form 26QC is the step between deducting the TDS and finally providing the TDS certificate (Form 16C) to your landlord.
Procedure to fill Form 26QC
Firstly fill Form 26QC, which is available at www.tin-nsdl.com. You are required to furnish details of your as well as of the landlord’s PAN, email ID and phone number; address of the property, the amount of tax deducted, etc. There are options for filling multiple PAN in case the property is owned by several people or is leased by multiple tenants. Multiple Form 26QC will be filed in case of various landlords.
After furnishing the details in Form 26QC, You can deposit the TDS through the option available i.e. ‘E-tax payment immediately’ via Net banking, debit or credit cards. You can also make the payments at a later date by opting for the ‘e-payment on subsequent date’ option. You can also visit any authorised bank’s branch to deposit the TDS once you have filled the Form 26QC.
TDS certificate in Form 16C is required to be furnished to the landlord within 15 days of the last permissible date of filing Form 26QC.
What if I don’t comply?
1. You are liable to pay 1% interest for every month of delay in deducting the tax. The penalty is higher at 1.5% per month if the tax has been deducted but not deposited.
2. Late filing of Form 26QC attracts a late fee of Rs 200 per day. For delay in issuing Form 16C, the penalty is Rs 100 per day.
3. If Form 26QC is not filed within one year after the due date, a penalty ranging from Rs 10,000 to Rs 1,00,000 could be levied on the tenant.