Thursday, July 6, 2017

What is FORM 26QC ?

What is FORM  26QC ?

From 1st June, 2017 individuals & HUF’s who are not under Tax audit(under section 44AB) while paying the rent of Rs. 50,000 or more (for a month) needs to deduct 5% TDS from the rent as per section 194IB.

TDS shall be paid to the credit of Central Government and be deposited in the authorized bank within 30 days from the end of month when tax was deducted.

This deposit has to be accompanied by the newly introduced challan-cum-statement of deduction of tax in Form No. 26QC.

This payment needs to be made in electronic mode. The active payment challan format not yet  launched.
What is  Form 16C ?

Form 16C is the newly introduced TDS certificate to be issued by rent payer (deductor) i.e. individuals & HUF’s who are not under Tax audit (under section 44AB), paying a rent of Rs. 50,000/- or above per month, to the rent receiver (deductee) as per section 194IB.
Form 16C contains the following details of the deductor and deductee i.e. name, address and PAN and other details like certificate number, financial year of deduction, unique acknowledgement number, amount paid, date, amount of tax deducted and deposited and challan details.

-          tax deducted is to be deposited accompanied by a challan-cum-statement in Form No.26QC electronically within thirty days from the end of the month in which the deduction is made.”
-          certificate of deduction of tax at source in Form No.16C within fifteen days from the due date for furnishing the challan, rule 31A after generating and downloading the same from the web portal

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