TDS
Tax Deducted at Source touches almost every payment a business makes. We work out the correct rate for each transaction, deposit what’s deducted, file the quarterly returns, and keep you clear of penalties.
|800+ businesses served since 2020
Tax collected at the point of payment
Tax Deducted at Source is a mechanism where the person making a payment — salary, contract fees, rent, interest, professional fees and more — deducts a portion of tax before paying the recipient, and deposits it with the government. It spreads tax collection across the year instead of a single lump sum, and gives the department an early trail of income as it’s paid.
Rates and thresholds are set by the Income Tax Act and revised periodically through the Union Budget, so the applicable rate for a given payment type can change from year to year. We keep the applicable rate for each of your payment types current rather than working off a rate sheet that’s gone stale.
- Salaries paid to employees
- Contractor and professional fee payments
- Rent above the applicable threshold
- Interest, commission and brokerage
- Payments to non-residents, subject to DTAA rates
Any business making payments that attract TDS
Businesses with payroll and vendor payments
Getting the rate right on every payment type, and depositing and filing on schedule.
Payments to non-residents
Applying the correct DTAA rate rather than defaulting to the higher domestic one.
Reconciling what’s been deducted
Matching TDS credit against Form 26AS before filing your own return, so nothing goes unclaimed.
Rate determination to quarterly filing
Rate determination
Confirming the correct current rate for each payment type before deduction.
Deduction and deposit
Tracking what’s deducted each month and depositing it with the government on schedule.
Quarterly return filing
The correct form filed for each category of deduction, every quarter.
TDS certificates
Forms 16 and 16A issued to deductees, reconciled against what was actually deposited.
Non-resident payments
Applying DTAA rates correctly and coordinating with 15CA/15CB certification where required.
Notice and penalty management
Handling any mismatch or short-deduction notice before it escalates.
Four steps to staying compliant
We map your payment types
Every category of outgoing payment matched to its applicable TDS treatment.
We deduct and deposit correctly
Right rate applied, deposited with the government on schedule.
We file quarterly returns
Forms prepared and submitted for each deduction category.
We issue certificates and track compliance
Forms 16/16A issued, and any notice handled before it becomes a penalty.
Questions companies ask first.
What happens if TDS is deducted at the wrong rate?
It shows up as a mismatch against Form 26AS or triggers a short-deduction notice from the department. We reconcile rates before deduction to avoid this, and handle any notice that does come through.
Do TDS rates change often?
Rates and thresholds are set in the Income Tax Act and can be revised in the Union Budget, so the figure that applied last year may not apply this year. We confirm the current rate for your payment type before each deduction rather than relying on memory.
What if I miss a TDS deposit or return deadline?
Missed deposits and returns can carry interest and penalties. We track your exact deposit and filing deadlines for each quarter so nothing slips.
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