Form 26QC
According to the Finance Act of 2017, any person or HUF to whom a tax audit is not applicable to make a payment of rent to a landlord (resident) more than Rs. 50,000/- per month, then they must deduct TDS under section 194IB. Additionally, the tenant must fill the Form 26QC on TIN NSDL.
The tenant may submit the Form 26QC within the 30 days from:
- The end of the financial year
The day on which tenant vacate the property or when the rent agreement terminated
Required Documents to file Form 26QC
- PAN of the landlord and the tenant
- Address of the landlord and the tenant
- Period of the lease
- Total Amount of the rent payable
- Amount of the rent paid in the last month
- The credit/payment date
- Total amount credited/paid
- The tax deduction date
Steps to File the Form26QC
- Open the e-filing portal website TIN NSDL (www.tin-nsdl.com), Select the TDS on rent of property option in services menu.
- From list-side list, select online form for furnishing TDS on Rent of Property (Form 26QC).
- Select the Form 26QC TDS on Rent of Property, form will appear.
- Financial year will be shown on the basis of the date of payment/credit selected in the Form. Fill details of Landlord and tenant, property etc. in the form.
- After submitting the details, last part is payment info, where you can select the payment option options.
- Payment can be done immediately or at a later date. An acknowledgment will be generated after the successful submission of the payment.
Penalty for Not Filing Form 26QC
- For every month that the tax isn’t deducted, you have to pay 1% interest. If the tax is withheld but not deposited, the penalty is greater, and lasts for one month at 1.5%.
- Tenant is liable to a penalty ranging from Rs. 10,000 to Rs. 1,00,000 if Form 26QC was not filed within a year of the due date.
- A late fee of Rs. 200 per day will be charged for the late filling of Form 26QC. Rs. 100 per day is the penalty if there is delay in issuing Form 16C
