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TDS

TDS – Ensuring Tax Compliance at the Source

Tax Deducted at Source (TDS) is a mechanism where tax is deducted by the payer before making payments such as salaries, rent, professional fees, and commissions. It ensures timely tax collection and prevents tax evasion. Businesses and individuals must comply with TDS provisions under the Income Tax Act. Failure to deduct or deposit TDS can result in penalties. Proper TDS filing and compliance help maintain smooth financial operations and avoid legal consequences.

Our Key Services:

  • TDS Registration – Assistance with obtaining TDS registration.
  • TDS Calculation – Accurate computation of TDS on various payments.
  • TDS Deduction & Deposit – Ensuring timely deduction and deposit of TDS.
  • TDS Return Filing – Preparation and submission of quarterly TDS returns.
  • Correction of TDS Returns – Rectification of errors in filed TDS returns.
  • TDS Certificates (Form 16 & 16A) – Issuing TDS certificates for employees and vendors.
  • Lower or Nil TDS Certificate Assistance – Helping in obtaining reduced TDS rates.
  • TDS on Salaries & Wages – Compliance with payroll-related TDS.
  • TDS on Contractual & Professional Payments – Compliance with applicable tax rates.
  • TDS on Rent, Interest & Dividends – Ensuring correct tax deduction.
  • TDS Compliance Audit – Reviewing and verifying TDS records.
  • TDS Penalty & Notice Handling – Assistance in responding to tax authorities.
  • TDS Refund Processing – Helping in claiming excess TDS refunds.
  • TDS Advisory Services – Expert guidance on TDS-related queries.
  • TDS Compliance for NRIs – Specialized services for Non-Resident Indians.

Frequency Asked Question

  • TDS (Tax Deducted at Source) is a system where tax is deducted at the time of making specified payments like salary, rent, professional fees, etc., to ensure tax collection at the source.

  • Employers, businesses, and individuals making payments above specified thresholds under the Income Tax Act are required to deduct TDS and deposit it with the government.

  • You can check your TDS deduction details in Form 26AS on the income tax portal or through your salary slip and TDS certificates (Form 16/16A).

  • TDS must be deposited by the 7th of the following month. However, for March deductions, the due date is April 30th.

  • Late payment attracts interest at 1.5% per month, while failure to deduct or deposit TDS may result in penalties, including prosecution.

  • TDS returns must be filed quarterly (Form 24Q for salaries, 26Q for non-salary payments, and 27Q for NRI payments).

  • A TDS certificate (Form 16 for salaries, Form 16A for other payments) is proof of tax deduction issued to deductees quarterly.

  • Yes, if excess TDS has been deducted, you can claim a refund while filing your income tax return.

  • You can apply for a lower or nil TDS deduction certificate by filing Form 13 with the Income Tax Department.

    1. Yes, TDS is deducted on payments made to freelancers and professionals if the payment exceeds the prescribed limit.

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