Do I need a TAN to deduct TDS?
Yes. Any person required to deduct TDS, except an individual or HUF buying immovable property under section 194-IA or paying rent under 194-IB, must obtain a TAN. We help you apply for a TAN and register on the TRACES portal.
What are the TDS rates on common payments?
Rates depend on the section, for example 10% for professional fees under 194J, 1% or 2% for contractors under 194C, 10% for rent of land or building and 2% for rent of plant and machinery under 194-I, and salary at slab rates under 192. Thresholds change; we check the current ones.
What if the deductee has no PAN?
TDS must be deducted at 20% or the normal rate, whichever is higher, if the deductee does not provide a valid PAN. We collect PAN and verify it before the payment, to avoid this extra cost and the vendor's complaint.
Can I file a TDS return without payment?
A return can be filed only if the challans are deposited and quoted. Filing with unmatched challans leads to defaults. We check each challan for the BSR code, date and amount before filing.
What happens if TDS is deducted but not deposited?
It is treated as a serious default: interest at 1.5% a month, and in some cases prosecution under section 276B. Deposit as soon as possible and file the return. We assist with computation and the rectification.
When are Form 16 and 16A issued?
Form 16 (salary) is due by 15 June after the year, and Form 16A is due within 15 days of the due date of the quarterly return. Both are generated from TRACES after the return is processed. A delay attracts ₹100 a day under section 234E-linked provisions; we issue them on time.
What are the due dates for TDS returns?
TDS returns are filed quarterly: 31 July, 31 October and 31 January for the first three quarters, and 31 May for the fourth. TDS deducted must be deposited by the 7th of the following month (30 April for March). Form 24Q covers salary, 26Q covers resident non-salary payments, and 27Q covers payments to non-residents.
What is the penalty for late TDS return filing?
A late filing fee under section 234E of ₹200 a day applies until the return is filed, capped at the TDS amount. Penalty under section 271H of ₹10,000 to ₹1 lakh can also apply if the return is not filed within a year or contains incorrect details. Late deposit of TDS attracts interest of 1% to 1.5% a month.
How do I correct a TDS return that has errors?
A correction statement is filed on the TRACES portal using the original provisional receipt number. Corrections can fix PAN errors, challan mismatches and deductee details. We download the justification report, find the exact default, and file the correction so the deductee's Form 26AS shows the credit.
