From deduction to deposit to return — we've got you covered. Accurate deductions, timely filings, hassle-free compliance. Stay compliant, avoid penalties.
TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax at the time of making specified payments (salary, interest, rent, professional fees, etc.) and deposits it with the government on behalf of the payee.
TCS (Tax Collected at Source) is collected by the seller from the buyer at the time of sale of specified goods (like scrap, minerals, motor vehicles above threshold, foreign remittances, etc.).
Both TDS and TCS are advance tax collection methods that ensure tax is collected at the point of income generation, reducing tax evasion and ensuring steady revenue for the government.
TDS shifts the responsibility of tax collection from the income earner to the income payer. The deductor must deduct correct TDS, deposit it on time, and file quarterly returns — failing which attracts interest, penalty, and prosecution.
Deducted by Payer from income paid to recipient (salary, rent, interest, fees)
Collected by Seller from buyer at time of sale of specified goods
24Q, 26Q, 27Q for TDS; 27EQ for TCS
Form 16/16A for TDS; Form 27D for TCS
TDS obligations apply to various categories of deductors.
All companies (Pvt Ltd, Public, LLP) must deduct TDS on applicable payments regardless of turnover.
Central & State Government, local authorities, statutory bodies must deduct TDS on all specified payments.
Individuals/HUF whose accounts are audited under Section 44AB in preceding year.
Business/profession with turnover exceeding ₹1 Cr (business) or ₹50 Lakh (profession) in preceding year.
Charitable trusts, educational institutions, religious bodies making specified payments.
Individuals/HUF paying rent exceeding ₹50,000/month must deduct TDS even without TAN.
Individuals/HUF paying contractors/professionals exceeding ₹50 Lakh/year must deduct TDS.
Any person making payment to NRI must deduct TDS under Section 195 at applicable rates.
Common TDS sections applicable for businesses and individuals.
| Section | Nature of Payment | Threshold (₹) | TDS Rate | Return Form |
|---|---|---|---|---|
| 192 | Salary | Basic Exemption | Slab Rates | 24Q |
| 194IA/195 | TDS on Sale Property | 50,00,000 | 1% (14.95% for NRI) | 26QB |
| 194A | Interest (other than securities) | 40,000 / 50,000 (Sr. Citizen) | 10% | 26Q |
| 194C | Contractor Payments | 30,000 (single) / 1,00,000 (aggregate) | 1% / 2% | 26Q |
| 194H | Commission / Brokerage | 15,000 | 5% | 26Q |
| 194I | Rent (Land/Building/Machinery) | 2,40,000 | 2% / 10% | 26Q |
| 194J | Professional / Technical Fees | 30,000 | 2% / 10% | 26Q |
| 194Q | Purchase of Goods (above ₹50L) | 50,00,000 | 0.1% | 26Q |
| 195 | Payment to Non-Resident | Nil | 20% / DTAA Rates | 27Q |
| 194-IB | Rent by Individual/HUF | 50,000/month | 5% | 26QC |
| 194M | Contract/Commission by Individual | 50,00,000 | 5% | 26QD |
* Rates shown are without surcharge and cess. Higher rate (20%) applicable if PAN not furnished. Check for latest rates.
Critical dates for TDS deposit and return filing.
| Month of Deduction | Due Date for Deposit |
|---|---|
| April to February | 7th of Next Month |
| March | 30th April |
| Government Deductors | Same Day (Book Entry) |
| Quarter | Period | Due Date |
|---|---|---|
| Q1 | Apr - Jun | 31st July |
| Q2 | Jul - Sep | 31st October |
| Q3 | Oct - Dec | 31st January |
| Q4 | Jan - Mar | 31st May |
| Certificate | Due Date |
|---|---|
| Form 16 (Salary) | 15th June |
| Form 16A (Q1) | 15th August |
| Form 16A (Q2) | 15th November |
| Form 16A (Q3) | 15th February |
| Form 16A (Q4) | 15th June |
| Form | Purpose |
|---|---|
| Form 24Q | TDS on Salary (Section 192) |
| Form 26Q | TDS on Non-Salary Payments (Residents) |
| Form 27Q | TDS on Payments to Non-Residents |
| Form 27EQ | TCS (Tax Collected at Source) |
| Form 26QC | TDS on Rent (Sec 194-IB) |
Failure to comply with TDS provisions attracts serious consequences.
1% per month for non-deduction; 1.5% per month for late deposit after deduction.
₹200 per day of delay until return is filed, subject to maximum of TDS amount.
₹10,000 to ₹1,00,000 for late filing, incorrect information, or failure to file return.
30% of expense disallowed if TDS not deducted/deposited on applicable payments.
Tax credit not available to deductee in Form 26AS if TDS not deposited/filed.
Rigorous imprisonment 3 months to 7 years for wilful failure to deduct/deposit TDS.
TDS default notices, demand for short deduction, and scrutiny of accounts.
Section 206AA: 20% TDS rate if deductee doesn't furnish PAN.
Detailed breakdown of interest and penalties for TDS non-compliance.
If TDS is not deducted at all when it should have been deducted from the payment.
If TDS deducted but not deposited to government within due date.
For delayed filing of quarterly TDS return beyond due date.
For failure to file TDS return or filing with incorrect information.
If TDS not deducted or deducted but not deposited by return filing date.
For wilful failure to deduct TDS or deposit after deduction.
End-to-end TDS/TCS compliance support for businesses and professionals.
Apply and obtain Tax Deduction Account Number (TAN) required for all TDS deductors. Quick processing with Form 49B filing.
Accurate TDS calculation on all payments — salary, rent, contractors, professionals, NRI payments. Rate advisory with latest amendments.
Timely deposit of TDS via Challan 281 before 7th of each month. E-payment through authorized banks.
Preparation and filing of Form 24Q, 26Q, 27Q, 27EQ every quarter. Validation, upload, and acknowledgement.
Download and issue TDS certificates to employees (Form 16) and vendors (Form 16A) after quarterly filing.
File correction statements for PAN errors, challan mismatches, short deduction, and other discrepancies.
Apply for lower/nil TDS certificate (Form 13) under Section 197 for eligible taxpayers.
Handle TDS default notices, short deduction demands, late filing penalties. Representation before TDS-CPC.
Reconcile Form 26AS with books of accounts. Identify mismatches, short credits, and ensure seamless ITR filing.
Our systematic approach to ensure timely and accurate compliance.
Identify applicable section & rate
Deduct at time of payment/credit
Pay via Challan 281 by 7th
Quarterly return filing
Form 16/16A to deductees
Verify 26AS & resolve mismatches
Documents required for TDS compliance services.
Transparent pricing for quarterly and annual compliance.
Single Quarter, Single Form
All 4 Quarters, All Forms
End-to-End Management
* Pricing varies based on number of deductees, complexity, and additional services. Contact for customized quote.
Common queries about TDS compliance answered.
TDS deducted in any month (April to February) must be deposited by the 7th of the following month. For March, the due date is 30th April. For government deductors, TDS must be deposited on the same day through book entry.
Late filing attracts a fee of ₹200 per day under Section 234E until the return is filed, subject to maximum of TDS amount. Additionally, penalty under Section 271H of ₹10,000 to ₹1,00,000 may be levied for failure to file or filing incorrect information.
Under Section 206AA, if the deductee does not furnish PAN, TDS must be deducted at the higher of: (a) rate specified in the Act, (b) rate in force, or (c) 20%. For Section 194Q (purchase of goods), it's 5% without PAN.
Yes, correction statements can be filed to rectify errors in PAN, challan details, deductee information, or TDS amount. Multiple correction returns can be filed. We help with all types of corrections including C1 (PAN correction), C2 (challan correction), C3 (deductee addition), etc.
Form 16 is the TDS certificate issued by employers to employees for salary TDS (Section 192). Form 16A is issued for all other TDS payments (rent, professional fees, contractors, etc.). Both are generated from TRACES portal after quarterly return filing and must be issued to deductees.
Yes, TAN (Tax Deduction Account Number) is mandatory for all persons responsible for deducting TDS. It must be quoted in all TDS challans, returns, and certificates. TAN can be applied using Form 49B. However, for Section 194-IB (rent by individual) and 194M, TDS can be deposited using PAN without TAN.
Under Section 197, a taxpayer can apply for a certificate (Form 13) to receive payments with lower or nil TDS if their estimated tax liability is lower than TDS that would be deducted. This is useful for persons with losses, exemptions, or lower income. We assist in applying and obtaining these certificates.
Section 194Q requires buyers with turnover exceeding ₹10 Cr to deduct TDS at 0.1% on purchase of goods exceeding ₹50 Lakh from a seller in a financial year. This applies only to resident sellers and kicks in after the ₹50 Lakh threshold is crossed. Section 206C(1H) for TCS by seller does not apply if 194Q applies.
Quick access to essential TDS-related government portals.
From deduction to deposit to return — we handle everything. Focus on your business while we ensure 100% TDS compliance.
This page provides general information about TDS/TCS compliance based on the Income-tax Act, 1961 and rules thereunder. TDS rates, thresholds, and due dates are subject to change through Finance Acts and notifications. The information provided is for educational purposes and should not be construed as professional tax advice. Actual compliance requirements may vary based on specific circumstances, nature of payments, and applicable exemptions. Please consult with qualified tax professionals for specific situations. We are not affiliated with any government department — TRACES, TIN-NSDL, or Income Tax Department. Always verify current rates and rules from official sources before making compliance decisions.