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Home TDS How to fill online Form 26QC|TDS on Rent of Property (Form 26QC)

How to fill online Form 26QC|TDS on Rent of Property (Form 26QC)

How to file TDS return (challan-cum-statement) u/s 194IB - TDS on Rent

Section 194IB – Form 26QC

It is mandatory to file Form 26QC as per section 194IB, whereby any person who is responsible to deduct tax at the source is required to file such form.

It is an online form which is available on the TIN website.

If you want to know more about section 194IB, you can click on the link to understand the provisions related to section 194IB.

I have tried to make you understand the provisions related to the filing of the Form 26QC, I have taken a real example so that you can be able to understand more easily how you can file such challan cum statement in online mode.

Steps to file online Form 26QC on the TIN website are as follows:-

Step 1: Visit TIN website by clicking the link. In the MENU bar of the website, you have to select TDS on rent of property under services menu.
services> TDS on Rent of Property

Procedure to fill Form 26QC on tin website.
https://www.tin-nsdl.com

Step 2: After clicking TDS on Rent of Property, scroll down the page and select the Online form for furnishing TDS on property (Form 26QC).

form for TDS on rent of property, online filling option available at TIN website.

Step 3: Under e-Payment of taxes, select TDS on Rent of Property (Form 26QC), then click Proceed.

select TDS on rent of property under e-payment of taxes options

Step 4: Form 26QC consists of 4 parts, you need to read out each and every particular carefully and need to fill those detail with accuracy.

Part A of the form consists of Taxpayer Information in which the following particulars are to be filled.
Part A of form which consist of taxpayer information

– Tax Applicable: Tax applicable will be auto-populated on the basis of the PAN of the Landlord. So you don’t have to select either of the options, it will get auto-populated once you will enter the PAN of the Landlord.

– Financial Year: Financial Year will get auto-populated once you will enter the date of payment/ credit selected in the form.

– Type of Payment: Code of tax which is 800 is by default selected which is on TDS on rent.

– Status of the Landlord/ Lessor/ Payee: You will have to select the status of the Payee as per the relevant financial year.

It may change on a year-to-year basis because TDS under section 194IB can be calculated in 2 (two) financial years for the single rent/ lease agreement.

Related: How to Calculate TDS on Rent u/s 194IB

– PAN details of the Landlord/ Lessee/ Payee: In this option, you have to mention the PAN of the deductee if it is available.

Choose the option accordingly, since it will matter when you will calculate the tax amount under section 194IB which says that if PAN is available then the tax rate is 5% and in case PAN is not available section 206AA will get attracted and accordingly tax rate of 20% will get attracted.

Relaxation in TDS rate for AY 2021-22, due to COVID.


Note: For the computation of TDS liability under section 194-IB, the tenant is required to deduct TDS @3.75% for Assessment Year 2021-22 (Financial Year 2020-21)

– PAN of Tenant/ lessee/ Payer: Now enter the PAN of the deductor.

-Category of PAN: The category of PAN will get auto-populated as per the PAN of the deductor. In our example, the deductor is an Individual, so it gets auto-populated as an Individual in the Category section.

– Full Name of the Tenant/ Lessee/ Payer: Full Name and the Status of the PAN (whether the PAN is active or Not) will get displayed on the confirmation screen after you will fill out all 4 parts of the Form 26QC.

– Confirm PAN of the Tenant/ Lessee/ Payer: Once again you need to enter the PAN of the deductor.

– PAN of the Landlord/ Lessor/ Payee: Now enter the PAN of the deductee.

– Category of PAN: The category of PAN will get auto-populated as per the PAN of the deductee. In our example, the deductee is an Individual, so it gets auto-populated as an Individual in the Category section.

– Full Name of the Landlord/ Lessor/ Payee: Full Name and the Status of the PAN (whether the PAN is active or Not) will get displayed on the confirmation screen after you will fill out all 4 parts of the Form 26QC.

– Confirm PAN of the Landlord/ Lessor/ Payee: Once again you need to enter the PAN of the deductee.

Now click on Next…

Part B of the form consists of Address details of the deductor and the deductee.
Part B of form which consist of address details of deductor and deductee.

– Complete address of the Tenant/ lessee/ Payer: You will have to enter the complete address of the deductor (it might be different from the address of the rented premises if the permanent address of the deductor is different, it may vary from case to case) with email id and phone number.

You will have to mention that on the rented premises whether there were more than on Tenant/ lessee/ Payer, if yes then you will have to select yes otherwise select No.

Wondering why this option is necessary to fill, the answer to the question is very simple because Form 26QC will have to be furnished by each unique tenant and landlord combination.

– Complete address of the Landlord/ Lessor/ Payee: You will have to enter the complete address of the deductee with email id and phone number.

You will have to mention that whether the rented premises are owned by more than 1 Landlord/ Lessor or Payee, if yes then you will have to select yes otherwise select No.

Wondering why this option is necessary to fill, the answer to the question is very simple because Form 26QC will have to be furnished by each unique tenant and landlord combination.

Now Click on the Next to proceed further.

Part C of the form consists of details regarding the complete address of the let-out property, period of tenancy, amount credited or paid, and tax deposit details.
Part C of form consist of letout property details

– Complete address of the property let out: You will have to enter the complete address of the property let out as per the rent/ lease agreement with Pincode.

– Period of tenancy: You will have to enter the number of the month(s) you have stayed in this rented property in the previous financial year as a tenant/lessee or payer.

– The total value of rent payable: You will have to enter the total value of rent payable during the previous financial year, the amount in rupees only.

In our example, the total value of rent payable during the last financial year which is FY 2019-20 is Rs.6,60,000/- (Rs.55,000/-pm * 12)

– Value of rent paid last month: You will have to enter the amount of rent paid in the last month.

There may a case where rent agreement covers more than one financial year, so in that case rent paid in the month of March is to be entered and in case you agreement terminated or you vacated the premises in the same financial year then the amount you have paid in the last month as per the month of termination or the month in which you vacated the said premises, the amount in rupees only.

In our example, the amount of rent paid in the last month is Rs.55,000/-.

– Amount paid or credited: You will have to scroll down and select the amount paid or credited from the list.

– Tax deposit details: The total amount paid or credited which we have earlier calculated is needed to be entered.

Rate of TDS: It will get auto-populated as per the detail provided by you in Part A i.e. PAN is available or Not.

Basic Tax: Now enter the basic tax as calculated. In our example, the TDS amount is to be calculated on Rs.6,60,000/- * 5%, which comes out to Rs.33,000/-. This is our basic tax.

Interest and fee will be calculated accordingly if there is any default in filing such challan cum statement on the part of the deductor.

The total payment will get auto-populated in figures and in words as per the details provided. In our example, the total payment comes out to Rs.33,000/-.

Click on the next to proceed.

Part D will consist of Payment information in which the deductor can select the mode of payment and provide details regarding the date of payment and date of deduction.
Part D of form consist of payment information

– Mode of payment: The deductor can select the e-tax payment immediately or on a subsequent date.

In case of immediate payment, the deductor has the option of net banking and debit card. You can choose your banking partner accordingly.

In our example, we have paid tax through net banking via state bank of India.

– Date of payment or credit: You have to enter the date of payment or date of credit of your last month’s rent amount.

In our example, the date of payment is 20th March 2020.

– Date of tax deduction: In this, you will have to mention the date on which tax is deducted at the source. In many cases, the date of payment of credit and the date of the deduction is different. So, you need to be very careful while mentioning the date of deduction.

In our example, the date of the deduction is the same as the date of payment i.e. 20th March 2020.

Now enter the Captcha Code and click on proceed.

After completing all these 4 parts, the confirmation page will appear as shown in the below image, which will state out all the particulars that you have entered before in all 4 parts.

Just confirm each particular so that there is no room left for the error.

Confirmation page of challan cum statement

Consent is to be given to NSDL e-Gov before proceeding further, the deductor is required to read out the consent and click on the I agree to checkbox and confirm the form.

After confirming the form, an Acknowledgment number will generate which the deductor can use for future references.

acknowledgement number after confirming form

Now, Form 26QC will get generated and the deductor can take the printout of such form and proceed to payment by clicking on submitting to the bank.

form 26qc after submitting

Now as per the banking channel select by you, proceed for the challan payment.

sbi net banking page for payment of taxes under section 194ib

After making payment, save the copy of the challan for your future references.

copy of challan under section 194ib

In our example, we have paid a tax amount of Rs.33,000/- on 21st April 2020 though our due date for making the payment was 30th April 2020 i.e. 30 days from the end of the month in which such deduction is made.

Form 26QC was filed on 21st April 2020 and it was processed by the Income Tax Department on 25th April 2020.

An email has been received by the deductor that Regular Statement for Acknowledgement Number RAC0XXXXX is processed without defaults u/s 200A.

It means if the challan cum statement is error-free, then it usually gets processed in 4-5 working days.

The deductor will received the email from the intimations@tdscpc.gov.in, stating the status of the regular statement for the relevant Acknowledgment Number.

Now it’s time to issue Form 16C to the landlord. Follow the link to know the procedure.

CA Devesh Thakur

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