Free Consultation by Expert
Many thanks to Setbharatbiz. We had an excellent experience working with its expert. They have a strong sense of professionalism when dealing with clients.
Mudassir CEO, Twinfinty DigiTech SolutionsWe would recommend Setbharatbiz incorporation services to any founder without a second doubt. The process was beyond efficient and shows Setbharatbiz founder's vision
Nagasrinivas Director,Prakash Nagasrinivas & Saradhy AssociatesI was searching for a company for assistance in the incorporation services. Then one of my friend tell me about Setbharatbiz and definitely the Setbharatbiz is the best.
Prakash Kakani Director, PNS EV HubOverview
TDS (Tax Deducted at Source) Compliance
A TDS (Tax Deducted at Source) compliance ensures that businesses and individuals deduct tax at source on specified payments and deposit it with the government. TDS is governed by the Income Tax Act, 1961, and applies to payments like salaries, interest, rent, professional fees, and more. Proper compliance prevents penalties, builds trust with stakeholders, and ensures smooth financial operations.
Importance
1. Legal Compliance : Adherence to TDS rules ensures compliance with the Income Tax Act.
2. Avoidance of Penalties : Prevents interest, late fees, and penalties for non-compliance.
3. Facilitates Tax Credit : Enables recipients to claim TDS in their income tax filings.
4. Transparent Transactions : Ensures accountability in financial dealings.
5. Corporate Credibility : Builds trust with stakeholders by demonstrating financial discipline.
TDS Applicability
1. Payments Subject to TDS :
- Salaries (Section 192)
- Rent (Section 194I)
- Professional Fees (Section 194J)
- Contract Payments (Section 194C)
- Commission and Brokerage (Section 194H)
- Interest (Section 194A)
2. Threshold Limits : No TDS is required if the payment amount does not exceed the prescribed threshold for each category.
Documents Required
For Individuals
Features
Features & Benefits of TDS (Tax Deducted at Source) Compliance
Timely Deposits
Quarterly Filing
Employee and Vendor Compliance
Error Resolution
TDS (Tax Deducted at Source) Compliance
Penalty Avoidance
TDS Certificates
Seamless Integration
Threshold Management
Digital Process
Comparison of TDS Compliance for Salaries vs Non-Salaries
| Feature | Salaries (Section 192) | Non-Salaries (e.g., 194C, 194J) |
|---|---|---|
| Applicability | Monthly salaries to employees | Payments like rent, contracts, and professional fees |
| Threshold Limit | Basic exemption limit for individuals | Varies by payment type |
| Certificate Issued | Form 16 | Form 16A |
| Return Filing Form | Form 24Q | Form 26Q |
Frequently Asked Questions
What is TDS compliance?
TDS compliance refers to deducting, depositing, and filing tax deducted at source as per the provisions of the Income Tax Act.
Who needs to deduct TDS?
Employers, businesses, or individuals making specified payments exceeding threshold limits must deduct TDS.
What is TAN, and why is it required?
TAN (Tax Deduction and Collection Account Number) is a unique identifier required for TDS deductions and filings.
What are the due dates for TDS deposits?
TDS must be deposited by the 7th of the following month, except for March, which has a deadline of 30th April.
What happens if TDS is not deducted?
Failure to deduct TDS can result in interest, penalties, and disallowance of expenses for income tax purposes.
Can TDS returns be revised?
Yes, TDS returns can be revised to correct errors or omissions.
What is Form 26AS, and how is it related to TDS?
Form 26AS is a tax credit statement that reflects all TDS deductions and deposits associated with a PAN.
Are small businesses required to comply with TDS?
Yes, small businesses must deduct TDS if their payments exceed specified limits.
How is TDS calculated for salaries?
TDS on salaries is calculated based on applicable income tax slabs after considering deductions and exemptions.
What is the penalty for late filing of TDS returns?
Late filing attracts a fee of ₹200 per day under Section 234E, subject to the total TDS amount.