{"id":9397,"date":"2026-03-21T06:20:08","date_gmt":"2026-03-21T06:20:08","guid":{"rendered":"https:\/\/margbooks.com\/blogs\/?p=9397"},"modified":"2026-03-21T06:20:12","modified_gmt":"2026-03-21T06:20:12","slug":"who-is-required-to-deduct-and-report-26q-tds","status":"publish","type":"post","link":"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/","title":{"rendered":"Who is Required to Deduct and Report 26q TDS?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1c6e70;color:#1c6e70\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1c6e70;color:#1c6e70\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Understanding_26Q_TDS\" title=\"Understanding 26Q TDS\">Understanding 26Q TDS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Nature_of_Payments_Covered_Form_26Q\" title=\"Nature of Payments Covered Form 26Q\">Nature of Payments Covered Form 26Q<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Practical_Examples\" title=\"Practical Examples\">Practical Examples<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Why_26TDS_is_Required_to_be_Deducted_and_Reported\" title=\"Why 26TDS is Required to be Deducted and Reported?\">Why 26TDS is Required to be Deducted and Reported?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Partnership_Firms\" title=\"Partnership Firms\">Partnership Firms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Limited_Liability_Partnerships_LLP\" title=\"Limited Liability Partnerships (LLP)\">Limited Liability Partnerships (LLP)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Individuals_and_HUF_Subject_to_Tax_Audit\" title=\"Individuals and HUF Subject to Tax Audit\">Individuals and HUF Subject to Tax Audit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Threshold_Limits_for_TDS_Deduction\" title=\"Threshold Limits for TDS Deduction\">Threshold Limits for TDS Deduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#TDS_Rates\" title=\"TDS Rates\">TDS Rates<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Compliance_Process_for_26Q_TDS\" title=\"Compliance Process for 26Q TDS\">Compliance Process for 26Q TDS<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Step_1_Calculate_TDS_Deduction_at_Applicable_Rate\" title=\"Step 1: Calculate TDS Deduction at Applicable Rate\">Step 1: Calculate TDS Deduction at Applicable Rate<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Step_2_Deposit_TDS\" title=\"Step 2: Deposit TDS\">Step 2: Deposit TDS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Step_3_File_Quarterly_Form_26Q\" title=\"Step 3: File Quarterly Form 26Q\">Step 3: File Quarterly Form 26Q<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Step_4_Issue_TDS_Certificate\" title=\"Step 4: Issue TDS Certificate\">Step 4: Issue TDS Certificate<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Consequences_of_Non-Compliance\" title=\"Consequences of Non-Compliance\">Consequences of Non-Compliance<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Late_Filing_Fee_%E2%80%93_Section_234E\" title=\"Late Filing Fee &#8211; Section 234E\">Late Filing Fee &#8211; Section 234E<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Penalty_%E2%80%93_Section_271H\" title=\"Penalty &#8211; Section 271H\">Penalty &#8211; Section 271H<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Interest_on_Late_Deduction_or_Deposit\" title=\"Interest on Late Deduction or Deposit\">Interest on Late Deduction or Deposit<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Department_Notices\" title=\"Department Notices\">Department Notices<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Real_Life_Examples_of_Business\" title=\"Real Life Examples of Business\">Real Life Examples of Business<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Importance_of_Accuracy_of_Records\" title=\"Importance of Accuracy of Records\">Importance of Accuracy of Records<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/margbooks.com\/blogs\/who-is-required-to-deduct-and-report-26q-tds\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>Timely adherence to 26q tds is a critical task for Indian businesses. It applies to payments made to resident where tax has to be deducted at source under the Income Tax Act, 1961. Every deductor has to not only make correct deduction of tax but also deposit and make quarterly returns in prescribed format.&nbsp;<\/p>\n\n\n\n<p>Failure to do so presses them into interest, late fees and penalties. Business owners\/finance managers accounts and payroll teams need to have a clear grasp of who has liability in terms of deducting and reporting under Form 26Q, and how to comply.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_26Q_TDS\"><\/span>Understanding 26Q TDS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The 26q tds is the quarterly TDS filed for payments to residents other than salary. It is filed against Section 200(3) Income Tax Act. Form 26Q captures:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>TAN of deductor<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>PAN of deductees<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nature of payment<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Amount paid or credited<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Amount in TDS deducted and deposited<\/li>\n<\/ul>\n\n\n\n<p>It does not apply to payments of salaries. The TDS for salary-related is reported separately.<\/p>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get Online Accounting Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Nature_of_Payments_Covered_Form_26Q\"><\/span>Nature of Payments Covered Form 26Q<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Form 26Q includes deduction of TDS on:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Contractor&#8217;s payment (Section 194C)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Professional fees (Section 194J)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rent (Section 194I)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Commission or brokerage (Section 194H)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Other Interest other than securities (Section 194A)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Director sitting fees<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Practical_Examples\"><\/span>Practical Examples<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A private limited company has paid \u20b95,00,000 to a contractor for renovation of the office. TDS as per Section 194C traffic of the Form 26Q must be deducted and submitted as Form 26Q.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A partnership firm pays \u20b975000 to a Chartered Accountant. TDS under Section 194J has been added which must be contained within 26Q.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_26TDS_is_Required_to_be_Deducted_and_Reported\"><\/span>Why 26TDS is Required to be Deducted and Reported?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>All Private limited company, Public limited companies are required to deduct TDS wherever required and submit form 26Q.<\/p>\n\n\n\n<p>A manufacturing company paying advance rent on monthly basis over the threshold amount has to deduct a TDS on the income under 194I and report in 26Q.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Partnership_Firms\"><\/span>Partnership Firms<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Registered partnership firms must make TDS deduction on eligible payments and file returns each quarter.<\/p>\n\n\n\n<p>A trading firm who is paying commission to the agents must deduct under Section 194H.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Limited_Liability_Partnerships_LLP\"><\/span>Limited Liability Partnerships (LLP)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>LLP are under mandatory TDS complying with the applicable sections invoking deduction.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Individuals_and_HUF_Subject_to_Tax_Audit\"><\/span>Individuals and HUF Subject to Tax Audit<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Individual and HUFs are required to deduct TDS in case they were liable to tax audit under Section 44AB in the previous financial year. This commonly applies to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>High-turnover proprietors<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Large consultants<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Contractors<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Government Entities<\/li>\n<\/ul>\n\n\n\n<p>Government departments make deductions of TDS under the <a href=\"https:\/\/margbooks.com\/accounting-software.html\">Accounting software<\/a> and file Form 26Q for the applicable non-salary payments.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Threshold_Limits_for_TDS_Deduction\"><\/span>Threshold Limits for TDS Deduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>TDS limits are only applicable once prescribed limits are exceeded. Examples:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Contractor payment: \u20b930 000 per contract or \u20b91,00,000 every year.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Professional fees: \u20b930,000 annually<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Rent: \u20b92,40,000 annually<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Interest: \u20b940,000 a year (\u20b950,000 for senior citizens)<\/li>\n<\/ul>\n\n\n\n<p>Deduction is formed when the threshold is exceeded.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"TDS_Rates\"><\/span>TDS Rates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 194C: 1% by individual\/HUF contractors, 2% for others<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 194J: 10%<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 194H: 5%<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Section 194I 2% for plant &amp; machinery 10% for land\/building<\/li>\n<\/ul>\n\n\n\n<p>Higher rate is payable if PAN is not provided under Section 206AA.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compliance_Process_for_26Q_TDS\"><\/span>Compliance Process for 26Q TDS<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Calculate_TDS_Deduction_at_Applicable_Rate\"><\/span>Step 1: Calculate TDS Deduction at Applicable Rate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deduct on time of payment or credit whichever earlier.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Deposit_TDS\"><\/span>Step 2: Deposit TDS<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Deposit by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>7th of next month<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>30th April for deductions for March<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The payment is made via Challan ITNS 281.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_3_File_Quarterly_Form_26Q\"><\/span>Step 3: File Quarterly Form 26Q<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Quarterly due dates:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Q1 (Apr-Jun): 31 July<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Q2 (Jul-Sep): 31 October<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Q3 (Oct-Dec): 31 January<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Q4 (Jan-Mar): 31 May<\/li>\n<\/ul>\n\n\n\n<p>Returns are filed through the TRACES portal electronically.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_4_Issue_TDS_Certificate\"><\/span>Step 4: Issue TDS Certificate<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Deductees should be issued Form 16A within 15 days of the due date of return filing.<\/p>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get Cloud-Based GST Billing Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consequences_of_Non-Compliance\"><\/span>Consequences of Non-Compliance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Failure to meet the requirements of 26q tds has financial under <a href=\"https:\/\/margbooks.com\/gst-billing-software.html\">GST billing software<\/a> and legal repercussions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Late_Filing_Fee_%E2%80%93_Section_234E\"><\/span>Late Filing Fee &#8211; Section 234E<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20b9200 per day<\/li>\n<\/ul>\n\n\n\n<p>Maximum up to TDS amount<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Penalty_%E2%80%93_Section_271H\"><\/span>Penalty &#8211; Section 271H<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Minimum \u20b910,000<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maximum \u20b91,00,000<\/li>\n<\/ul>\n\n\n\n<p>Applies for late filing time or wrong details.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interest_on_Late_Deduction_or_Deposit\"><\/span>Interest on Late Deduction or Deposit<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1% per month for late deduction<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>1.5% per month for late deposit<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Department_Notices\"><\/span>Department Notices<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Income Tax Department can issue notifications for:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mismatch in PAN<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Short deduction<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Late payment<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Non-filing<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Real_Life_Examples_of_Business\"><\/span>Real Life Examples of Business<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A Gurgaon-based private company issues contractor bills to them on a monthly basis. Accounts team deducts the TDS but forgets to make a quarterly return. Section 234E Late fee applicable. Where there are such compliance gaps, using structured systems inside MargBooks software reduces those compliance gaps.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A partnership firm deducts 10% on professional payment, however enters wrong PAN. Correction filing comes into the picture. This can be prevented by accurate tracking inside our system.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Funded Startup withdraws tax on time but defers filing quarterly returns. Penalty notice is received. Integration between TDS records and reporting tools in MargBooks enhances appointment deadlines.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance_of_Accuracy_of_Records\"><\/span>Importance of Accuracy of Records<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Businesses should maintain:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Vendor PAN details<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Payment registers<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>TDS ledger<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Identification number of the cheque (CIN)<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Form 16A issuance record<\/li>\n<\/ul>\n\n\n\n<p>Accurate reconciliation helps to reduce the risk of scrutiny.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It is important for the Indian business to understand who will have to deduct and report 26q tds. Companies, LLPs, firms, audited individuals, and government companies are required to be compliant in the event of eligible payment to the residents. Form 26Q quarterly, issuing certificates are mandatory steps.&nbsp;<\/p>\n\n\n\n<p>Deducting tax at the right rates, making deposits within the due dates under <a href=\"https:\/\/margbooks.com\/\">MargBooks software<\/a>, filling up. Non-compliance mean late fees, interest, penalties and departmental notices. Proper systems, internal controls and timely monitoring ensure that 26q tds obligations are complied with without any financial burden or legal complications.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Timely adherence to 26q tds is a critical task for Indian businesses. It applies to payments made to resident where tax has to be deducted at source under the Income Tax Act, 1961. Every deductor has to not only make correct deduction of tax but also deposit and make quarterly returns in prescribed format.&nbsp; Failure [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9398,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1948],"tags":[2548,2549],"class_list":["post-9397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income-tax","tag-income-tax-tds","tag-tax-deduction-at-source-india"],"blocksy_meta":[],"blog_post_layout_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds-150x150.webp",150,150,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds.webp",1200,576,false]},"categories_names":{"1948":{"name":"Income Tax","link":"https:\/\/margbooks.com\/blogs\/category\/income-tax\/"}},"tags_names":{"2548":{"name":"Income Tax TDS","link":"https:\/\/margbooks.com\/blogs\/tag\/income-tax-tds\/"},"2549":{"name":"Tax Deduction at Source India","link":"https:\/\/margbooks.com\/blogs\/tag\/tax-deduction-at-source-india\/"}},"comments_number":"0","wpmagazine_modules_lite_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds-150x150.webp",150,150,true],"cvmm-medium":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds-300x300.webp",300,300,true],"cvmm-medium-plus":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds-305x207.webp",305,207,true],"cvmm-portrait":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds-400x576.webp",400,576,true],"cvmm-medium-square":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds-600x576.webp",600,576,true],"cvmm-large":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds-1024x576.webp",1024,576,true],"cvmm-small":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds-130x95.webp",130,95,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2026\/03\/26q-tds.webp",1200,576,false]},"_links":{"self":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/9397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/comments?post=9397"}],"version-history":[{"count":1,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/9397\/revisions"}],"predecessor-version":[{"id":9399,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/9397\/revisions\/9399"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media\/9398"}],"wp:attachment":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media?parent=9397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/categories?post=9397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/tags?post=9397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}