Form 26Q vs Form 24Q: Which TDS Form to Use and When
- Nimisha Panda
- Nov 19, 2025
- 8 min read
Updated: Nov 25, 2025
Choosing the right TDS form is essential for accurate tax compliance under the Indian Income Tax Act. Both Form 24Q and Form 26Q serve as quarterly TDS return statements but apply to entirely different types of payments. Form 24Q is used for salary-based deductions under Section 192, while Form 26Q applies to payments like rent, commission, and professional fees under Section 200(3). The right form ensures proper tax reporting and helps avoid penalties for incorrect filing.
Table of Contents
Understanding the Purpose of TDS Forms 24Q and 26Q
Tax Deducted at Source (TDS) is a mechanism through which the government collects tax at the time of income generation. To report these deductions, deductors must file specific quarterly TDS returns. Among these, Form 24Q and Form 26Q are the most commonly used. Form 24Q is meant for reporting TDS deducted from salaries paid to employees under Section 192 of the Income Tax Act. It contains detailed information about the employer, employee, and salary structure. On the other hand, Form 26Q applies to TDS on non-salary payments made to residents—such as payments for rent, commission, professional fees, interest, or contract payments—under Sections 193, 194, and 200(3). Understanding which form applies ensures compliance and prevents penalties for incorrect reporting.
Key Differences Between Form 24Q and Form 26Q
Form 24Q and Form 26Q differ based on the type of payment and the category of the deductee. Form 24Q is strictly for salaries, while Form 26Q covers all non-salary payments made to residents. Employers filing Form 24Q must include Annexure I for all quarters and Annexure II for the last quarter, providing comprehensive details of salary, allowances, and deductions. Form 26Q, however, does not have annexures and includes information such as deductor and deductee details, nature of payment, PAN numbers, challan information, and TDS amounts. Both forms are filed quarterly, but their purpose, contents, and reporting structures vary significantly.
Aspect | Form 24Q | Form 26Q |
Purpose | TDS on salary payments | TDS on non-salary payments |
Applicable Section | Section 192 | Sections 193, 194, and 200(3) |
Deductee Type | Employees | Contractors, professionals, landlords, etc. |
Filing Frequency | Quarterly | Quarterly |
Annexures | Annexure I & II | Not applicable |
PAN Requirement | Mandatory for all employees | Mandatory for deductees (Govt deductors may use PANNOTREQD) |
These distinctions make it essential for deductors to choose the correct form based on the nature of payment and the relationship with the payee.
When to Use Form 24Q
Form 24Q is used exclusively for TDS on salaries. Any employer who deducts tax under Section 192 while paying salaries must file this form every quarter. Annexure I contains quarterly details such as the employer’s TAN, challan information, and the TDS amount deducted. Annexure II, filed only in the fourth quarter, provides a detailed salary breakup, including basic pay, allowances, deductions, and exemptions claimed by employees. These details are essential for generating Form 16, which helps employees file their income tax returns accurately. Timely filing of Form 24Q ensures smooth reconciliation and prevents mismatches in TDS credit.
When to Use Form 26Q
Form 26Q must be filed by all deductors—except for payments covered under Form 24Q—who deduct TDS on payments to resident individuals or entities. This form applies to payments made under Sections 193, 194, and related provisions, including professional fees, contract payments, commission, brokerage, rent, interest (excluding salary), and dividends. Businesses, firms, or individuals responsible for such payments must submit Form 26Q quarterly. The form includes details like deductor and deductee PANs, payment amounts, nature of payment, and challan details. Accurate filing ensures proper reflection of TDS in the deductee’s Form 26AS, avoiding disputes or delays during tax filing.
Compliance Requirements and Common Mistakes to Avoid
Both Form 24Q and Form 26Q must be filed quarterly within prescribed due dates: 31st July, 31st October, 31st January, and 31st May for each respective quarter. Failure to file on time attracts a late filing fee under Section 234E, levied at ₹200 per day until the return is filed. Common mistakes include incorrect PAN/TAN entries, mismatched challan details, and wrong section codes for TDS deductions. Another frequent error is the omission of Annexure II in the fourth quarter of Form 24Q. Maintaining accuracy in each detail is crucial, as errors may lead to notice generation from the Income Tax Department or incorrect TDS credit for the payee.
Revision, Correction, and TRACES Portal Usage
In case of errors in the filed TDS return, deductors can file a correction statement through the TRACES portal. Both Form 24Q and 26Q can be revised to rectify details such as PAN, challan information, or deductee data. TRACES allows users to download the Consolidated File (Conso File), request justification reports, and verify challans before resubmission. Proper verification helps avoid further discrepancies and ensures the corrected details reflect in Form 16 and Form 26AS. Using TRACES effectively minimizes errors, ensuring a compliant and transparent TDS reporting process.
How TaxBuddy Simplifies TDS Return Filing
Filing TDS returns manually can be time-consuming and prone to errors. TaxBuddy simplifies the process through its AI-driven system that auto-fills data, validates PAN details, and ensures accuracy in challan linking. Whether it’s Form 24Q for salaries or Form 26Q for non-salary payments, TaxBuddy’s platform provides guided assistance for deductors to stay compliant with quarterly deadlines. Businesses and employers can rely on TaxBuddy’s expert-assisted services to review, file, and revise TDS returns without hassle, reducing the risk of penalties or data mismatches.
Conclusion
Filing the correct TDS form—Form 24Q for salaries and Form 26Q for other payments—is essential for maintaining compliance and ensuring smooth generation of Form 16 and accurate tax records. Digital platforms like TaxBuddy simplify this process by offering automated, error-free TDS filing assistance. For anyone looking for assistance in tax filing, it is highly recommended to downloadTaxBuddy mobile appfor a simplified, secure, and hassle-free experience.
FAQs
Q1. Does TaxBuddy offer both self-filing and expert-assisted plans for ITR filing, or only expert-assisted options?
TaxBuddy offers both self-filing and expert-assisted plans to cater to different user needs. The self-filing plan uses an AI-powered interface that guides taxpayers step by step through the filing process with automated data checks and real-time error detection. For users who prefer professional assistance, the expert-assisted plan connects them with certified tax professionals who prepare, review, and file the return on their behalf. This flexibility allows every taxpayer to choose a filing mode that fits their comfort and complexity of income sources.
Q2. Which is the best site to file ITR?
The best site for filing Income Tax Returns depends on the user’s preferences and requirements. While the official government portal (incometax.gov.in) is available for all taxpayers, platforms like TaxBuddy make the experience smoother with AI-based automation, data pre-filling, and real-time expert support. TaxBuddy ensures compliance with the latest tax laws and eliminates manual errors that commonly occur in the self-filing process, making it one of the most reliable and efficient ITR filing platforms in India.
Q3. Where to file an income tax return?
An income tax return can be filed either through the government’s e-filing portal (incometax.gov.in) or through a trusted third-party platform such as TaxBuddy. Filing through TaxBuddy provides additional benefits like pre-filled data from PAN, Form 16, and AIS/TIS reports, ensuring error-free computation. It also helps users select the correct ITR form based on their income sources, ensuring that returns are filed correctly and on time.
Q4. Which TDS form is used for salary payments?
Form 24Q is used for reporting TDS deducted from salary payments made to employees under Section 192 of the Income Tax Act. Employers must file this form quarterly to provide details of TDS deducted and deposited, along with information about each employee’s salary structure and exemptions. The fourth-quarter filing includes Annexure II, which details the complete salary components for the financial year. This data helps generate Form 16 for employees’ income tax returns.
Q5. Which form should be filed for TDS on contractor payments?
TDS deducted from payments made to contractors, professionals, or other non-salary payments must be reported using Form 26Q. This form covers payments under various sections, such as 194C (contractors), 194J (professional fees), and 194I (rent). It is applicable for all resident payments excluding salary. Filing Form 26Q accurately ensures that the deductee receives proper credit for the TDS in their Form 26AS.
Q6. Can Annexure II be filed in quarters other than the fourth quarter in Form 24Q?
No, Annexure II of Form 24Q can only be filed in the fourth quarter (January to March). Annexure II contains detailed information about each employee’s total salary, deductions, allowances, and tax calculations for the entire financial year. The first three quarters require only Annexure I, which includes basic TDS and challan details. Filing Annexure II before the final quarter is not permitted, as complete salary data is consolidated only at year-end.
Q7. Is PAN mandatory for deductees in Form 26Q?
Yes, PAN is mandatory for all deductees mentioned in Form 26Q. Non-furnishing or incorrect PAN details may lead to higher TDS deductions at 20% instead of the prescribed rate. However, in the case of government deductors, if a PAN is not available, they may use “PANNOTREQD” in place of a PAN. Ensuring the correct PAN information is crucial for proper reflection of TDS in Form 26AS and to avoid compliance issues.
Q8. Can TDS returns be revised after filing?
Yes, TDS returns can be revised if any errors or discrepancies are found after submission. A correction statement can be filed through the TRACES portal to amend details such as deductor or deductee PAN, challan information, or TDS amounts. The revised return should be filed promptly to ensure that the corrected details are updated in Form 26AS and the deductee receives accurate TDS credit.
Q9. What is the penalty for late filing of TDS returns under Section 234E?
Under Section 234E of the Income Tax Act, a late filing fee of ₹200 per day is charged for every day of delay in submitting the TDS return. The penalty amount cannot exceed the total TDS deducted for that quarter. Additionally, continuous delays can lead to notices from the Income Tax Department or difficulties in generating Form 16/16A. Filing within due dates—31st July, 31st October, 31st January, and 31st May—ensures compliance and avoids these charges.
Q10. How does TaxBuddy assist in TDS return filing for businesses?
TaxBuddy simplifies TDS filing for businesses through its AI-driven and expert-assisted system. It automates data validation, challan matching, and section-wise classification of payments, minimizing the scope for errors. Businesses can upload their TDS data in bulk, and TaxBuddy’s team ensures timely and compliant submission of both Form 24Q and Form 26Q. The platform also offers revision support for any corrections required later, ensuring businesses stay audit-ready and penalty-free.
Q11. What documents are required for Form 24Q and 26Q submission?
To file Form 24Q or Form 26Q, the deductor needs the following documents and details:
TAN and PAN of the deductor
PAN of deductees (employees, contractors, professionals, etc.)
Challan identification number (CIN) for deposited TDS
Payment details, such as salary, rent, interest, or professional fees
Section codes under which TDS is deducted
Salary breakup and deductions (for Form 24Q, Annexure II) Maintaining accurate records ensures smooth filing and verification of returns.
Q12. How to check the status of a filed TDS return on TRACES?
The status of a filed TDS return can be checked on the TRACES (TDS Reconciliation Analysis and Correction Enabling System) portal. After logging in with valid credentials, the deductor can navigate to “Statements / Payments” → “View Filed TDS Statements” to see the status. The portal displays whether the return is accepted, rejected, or requires correction. Once accepted, the data reflects in Form 16/16A and in the deductee’s Form 26AS, confirming successful filing.
