Tuesday, April 16, 2024

Guide to Filing Form 26QC: Deadlines, Procedures, and Penalties for FY 2023-24

Form 26QC Filing Deadline is 30th April 2024 for FY 2023-24

As the 30th April 2024 deadline for filing Form 26QC approaches, it is vital for tenants paying rent exceeding ₹50,000 per month to adhere to the provisions of Section 194-IB of the Income Tax Act. Below is a comprehensive guide on how to file Form 26QC, correct any errors, and understand the penalties for non-compliance.

How to File Form 26QC

1. Accessing the Income Tax Portal:

  • Log on to the Income Tax e-Filing portal at https://www.incometax.gov.in.
  • If you're a tenant, use your PAN to log in or register if you haven't already.

2. Filing Form 26QC:

  • Go to the ‘e-Pay Tax’ section and select 'Form 26QC'.
  • Fill out the form carefully, including details such as the PANs of both the tenant and the landlord, contact details, address of the rented property, rental period, monthly rent, and the TDS amount.

3. Payment of TDS:

  • Verify the information entered and proceed to make the payment through net banking or a debit card option.
  • After payment, ensure to save the challan with the Challan Identification Number (CIN) for your records.

4. Documentation:

  • It's crucial to download and keep a copy of the challan as proof of your TDS payment.

Correction Procedure for Form 26QC

Step-by-Step Guide:

1. Login to TRACES:

  • Visit the TRACES website (https://www.tdscpc.gov.in) and log in with your credentials.
  • Navigate to the section for Form 26QC correction.

2. Identifying Errors:

  • Identify and select the specific Form 26QC you wish to correct. You can do this by entering details such as the PAN, CIN, and acknowledgment number.

3. Making Corrections:

  • Make the necessary changes to the form. Common corrections include updating landlord or tenant PAN details, changing the rent amount, or correcting the rental period.
  • Review the corrections to ensure all information is accurate before submission.

4. Submission of Corrected Form:

  • Once corrections are made, submit the form.
  • Keep a copy of the acknowledgment and the revised challan as proof of correction.

Penalties for Non-Compliance

  • Late Deduction of TDS: Interest at 1% per month from the date the TDS was supposed to be deducted until the deduction date.
  • Late Payment of TDS: Interest at 1.5% per month from the deduction date until the payment date.
  • Late Filing of Form 26QC: Penalty of ₹200 per day until the form is filed, not exceeding the TDS amount.
  • Failure to Issue Form 16C: Penalty of ₹100 per day until the certificate is issued, not exceeding the TDS amount.

Key Deadlines for FY 2023-24

  • TDS Payment: Due within 30 days from the end of the month in which TDS was deducted.
  • Form 26QC Filing: Must be filed by 30th April 2024.
  • Form 16C Issuance: Should be issued within 15 days of filing Form 26QC.

Compliance Checklist at a Glance

ApplicabilityTenants paying monthly rent over ₹50,000
Required FormForm 26QC
Portal for FilingIncome Tax e-Filing portal and TRACES for corrections
Payment MethodsNet banking, debit card
Filing Deadline30th April 2024
Correction FacilityAvailable on TRACES portal
PenaltiesLate deduction, payment, filing, and failure to issue Form 16C


To avoid penalties and ensure full compliance, tenants must adhere to the guidelines, pay the TDS timely, and file Form 26QC by 30th April 2024. Promptly correct any errors in the filing to maintain accuracy in records and avoid potential legal issues.