Quarterly Return by Banks to Report Interest Payments
Introduction
Banks and certain financial institutions must file quarterly returns to report interest payments (other than on securities) made to resident individuals where TDS is not deducted.
Who Must File Quarterly Returns?
- Banks and Co-operative Banks
o If interest (other than on securities) paid to a resident individual does not exceed Rs. 40,000 in a financial year.
- Public Companies Providing Long-Term Housing Finance
o If interest paid on deposits does not exceed Rs. 5,000 in a financial year.
Due Dates & Forms
- The return must be filed inForm 26QAAwithin:
o 1 month from the end of Q1, Q2, and Q3.
o By June 30 for Q4.
Electronic Filing & Correction Statements
- Return to be filed electronically.
- Correction statements can now be filed to rectify errors, update, or delete information.
Penalty for Default
- Rs. 500 per day of delay underSection 272A.