TDS Compliance in Ahmedabad – Deduct Right, File on Time
Tax Deducted at Source (TDS) is the mechanism by which the government collects tax at the point of income – when a payment is made, the payer deducts tax and deposits it with the government. Any business making payments above specified thresholds for salary, professional fees, rent, contractor payments or interest must comply with TDS provisions.
TDS compliance has two components – correct deduction at the right rate and timely filing of quarterly returns. Errors in either attract interest (1-1.5% per month), penalties and in some cases prosecution. At OakRise Fincorp, we handle complete TDS compliance for businesses in Ahmedabad.
TDS Compliance Services
TDS Rate Advisory
Identifying the correct TDS section and rate for each type of payment – Section 192 (salary), 194C (contractors), 194J (professional/technical fees), 194I (rent), 194H (commission) and others. Incorrect rates lead to demand and interest.
TDS Challan Payment
Monthly TDS payment to the government through NSDL Challan 281. Must be paid by the 7th of the following month (15th for March). Late payment attracts interest at 1.5% per month.
Quarterly TDS Return Filing
Filing Form 24Q (TDS on salary), Form 26Q (TDS on non-salary payments to residents) and Form 27Q (TDS on payments to non-residents) every quarter with correct deductee PAN and TDS amounts.
Form 16 and 16A Generation
Generating TDS certificates – Form 16 (for salary TDS under 192) and Form 16A (for all other TDS) – from TRACES portal and distributing to deductees within the prescribed deadline.
TDS Mismatch Resolution
Resolving mismatches between TDS deposited and TDS reflected in deductees’ Form 26AS – commonly caused by incorrect PAN, wrong challan details or payment in wrong assessment year.
Lower TDS Certificate Assistance
Assisting vendors and consultants in obtaining lower deduction certificates under Section 197 from the income tax department, where TDS at normal rates causes cash flow problems.
Frequently Asked Questions
Who is required to deduct TDS?
Any person or entity that makes specified payments above threshold limits must deduct TDS. This includes companies, LLPs, partnerships, Hindu Undivided Families, government bodies and individuals/proprietors who are subject to tax audit. Common payments requiring TDS: salary (no threshold), contractor payments above ₹30,000 per transaction/₹1 lakh per year, professional fees above ₹30,000/year, rent above ₹2.4 lakh/year.
What happens if I do not deduct TDS?
Non-deduction of TDS results in: interest at 1% per month from the date TDS should have been deducted to the date of deduction, plus 1.5% per month from deduction to deposit. A penalty equal to the TDS amount may also be levied. In serious cases, the expense may be disallowed in your tax computation. We help businesses set up systematic TDS compliance to avoid these consequences.
What is the due date for TDS return filing?
Quarterly TDS returns are due on: Q1 (April-June) – 31st July, Q2 (July-September) – 31st October, Q3 (October-December) – 31st January, Q4 (January-March) – 31st May. Late filing attracts a fee of ₹200 per day under Section 234E, capped at the TDS amount for that return.
What is Form 26AS and why does it matter?
Form 26AS is your tax credit statement – it shows all TDS deducted against your PAN by various deductors, advance tax paid, self-assessment tax paid and high-value transactions reported. When you file your ITR, the TDS in 26AS must match what you claim. Mismatches trigger notices. We verify Form 26AS for all our clients before ITR filing.
Do I need a TAN for TDS compliance?
Yes. A Tax Deduction Account Number (TAN) is mandatory for all entities required to deduct TDS. It must be quoted in all TDS returns, challans and certificates. Obtaining a TAN is free and done through the NSDL portal. We assist with TAN application and registration.