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Form 26QC

RAJESH CHOUDHARY (2 Points)

18 August 2022

what is procedure of form 26 QC if request give in TDS ITO ward

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177824 Points)
Replied 18 August 2022

The Query is not clear....

Form 26QC is the challan-cum-statement for reporting the transactions liable to TDS on rent under section 194-IB of the Income-tax Act, 1961. It is an online form available on the TIN website.

E-Payment facilitates payment of taxes online by taxpayers. To avail this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks or a debit card in case of some banks. Please follow the steps as under to pay tax online:-

Step 1

Log on to Protean-TIN website (www.tin-nsdl.com).
Click on the option “Online form for furnishing TDS on Rent (Form 26QC)”.
Select Form 26QC (Payment of TDS on Rent of Property)

Step 2

After selecting the form you will be directed to the screen for entering certain information.

Example:-

a) Permanent Account Number of the Tenant and Landlord
b) Address of the Tenant and Landlord as well as the Property being let out
c) Financial Year will be populated on the basis of Date of Payment/Credit selected in the Form.
d) Major Head Code - Indicates the type of tax applicable viz; Corporation Tax (Companies)/ Income Tax (Other than Companies) will be populated based on Landlords PAN
e) Total Value of Rent Payable
f) Period of Tenancy
g) Date of Payment/Credit
h) Date of Deduction
i) Amount Paid/Credited
j) TDS Amount
k) Select the option for “Payment of taxes immediately”

It is important to ensure that PAN of Tenant and Landlord are correctly mentioned in the form. There is no online mechanism for subsequent rectification. Deductor will have to approach the TDS - Assessing Officer or CPC-TDS for rectification of errors.

Step 3

After entering all the above detail, click on PROCEED button. The system will check the validity of PAN. In case PAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of tax.

If PAN is available then TIN system will display the contents you have entered along with the “Name” as per in the ITD database with respect the PAN entered by you.

If PAN of the landlord is not available, please select the option Permanent Account Number Not Available. In such case, TDS has to be deducted under the provisions of section 206AA of the Income-tax Act, 1961 i.e. at higher rate of 20%, subject to a maximum amount equivalent to the amount of rent paid for the last month of the previous year or the last month of the tenancy, as the case may be.

Step 4

You can now verify the details entered by you. In case you have made a mistake in data entry, click on “EDIT” to correct the same. If all the detail and name as per ITD is correct, click on “SUBMIT” button. Ten digit alpha numeric ACK no. will be generated and you will be directed to the net-banking site provided by you.

Please be informed that the name and status of PAN is as per the ITD PAN Master. You are required to verify the name before making payment. In case any discrepancy is observed, please confirm the PAN entered by you. Any change required in the name displayed as per the PAN Master can be updated by filling up the relevant change request forms for PAN. If the name is correct, then click on "Confirm".

Step 5

After confirmation an option will be provided for submitting to Bank. On clicking on Submit to Bank, deductor (as per the mode of payment selected while filling the form) will have to key in the debit card details or login to the net-banking site with the user ID/ password provided by the bank for net-banking purpose and enter payment details at the bank site.

On successful payment a challan counterfoil will be displayed containing CIN, payment details and bank name through which e-payment has been made. This counterfoil is proof of payment being made.