20 Nov 2019Posted By: Mudit Handa

CBDT notifies New TDS Return Filing Forms 26QD & 16D

For every type of business entity, tax compliance is perhaps one of the most crucial aspects. It is always advised that the individuals and companies must properly fulfil all the provisions of the Income Tax Act 1961. It is important to adhere to due dates in respect of payment of income tax deducting tax at source (TDS), in addition to the ITR filing as well as TDS Return Filing. In this regard, the Income Tax Department has introduced 2 new TDS Return Filing e-forms, viz. Form 26QD & Form 16D

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Presently there are 4 key types of TDS returns to be filed:-

  • Form 24Q
  • Form 26Q
  • Form 26QB
  • Form 27Q

With respect to the payment made to the contractors and professionals, u/s 194M of Income Tax Act 1961, the Central Board of Direct Taxes has introduced 2 new TDS Return Filing e-forms, viz. Form 26QD & Form 16D.


1. What does Section 194M tell?

During the Union Budget 2019, the Government had proposed some changes to sections of the Income Tax Act. Apart from that, this Budget also introduced a new Section for TDS, i.e. 194M, which is for TDS on payment to resident contractors & professionals. As per Sec 194M:- 

  • All the individuals and/or HUF have to deduct tax at source in relation to payment to resident contractors & professionals. 
  • For such individuals and HUF, tax audited is mandatory only if aggregate turnover or gross receipts exceed INR 1 crore or and the receipts of a profession exceed INR 50 lakh. 
  • This section applies if the total amount paid to resident contractor/professional, for conducting any contract work or providing a professional service, is exceeding INR 50 lakh.
  • This section only covers payments made to resident contractor/professional, and non-residents are not included.

In this regard, such individuals and HUF have to file new TDS returns Form 26QD & Form 16D.

2. What is Form 26QD?

Form 26QD is the TDS return filing form for the payments to resident contractors and professionals u/s 194M.
As per CBDT notification, henceforth any tax deducted at source u/s 194M must be paid to the Central Government within the period of 30 days from the end of the month when such deduction was made. This deduction must be specified in a challan-cum-statement in Form 26QD.

3. What is Form 16D?

Form 16D is the TDS certificate for TDS payment u/s 194M.
As per CBDT notification, henceforth all persons who have to deduct tax u/s 194M have to furnish a TDS certificate, in the Form 16D to the payee, within 15 days from the due date for TDS return filing in Form 26QD.

Accordingly, the taxpayers are required to furnish the aforesaid New TDS return filing forms.


In case you require any sort of assistance related to TDS return filing, or ITR filing online, please feel free to contact our business advisors at 8881-069-069.

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