TDS deduction, payment and return filing
Businesses that pay salaries, rent, professional fees, contractor payments or interest must deduct tax at source, deposit it on time and file quarterly returns. Late payment and late filing attract interest and fees, and short deduction can make the expense disallowable. We run the full TDS cycle for you.
What this covers
- Applicable sections and rates for each payment
- Monthly challan payment
- Quarterly TDS returns for salary, resident and non-resident payments
- TDS certificates to employees and vendors
- Lower or nil deduction certificates
- Correction statements and resolution of TRACES defaults
The Income-tax Act, 2025 applies to income from 1 April 2026. Returns, audits and assessments for earlier years continue under the Income-tax Act, 1961, so section and form references depend on the year involved.
How the work is done
- Map your recurring payments to TDS sections
- Calculate and deposit TDS each month
- File quarterly returns
- Issue certificates and clear any defaults
Documents usually needed
- TAN
- Vendor and employee PAN details
- Payment ledgers for the period
- Salary register
Frequently asked questions
What is the due date for depositing TDS?
Generally the 7th of the following month, and 30 April for deductions made in March.
What happens if TDS is not deducted?
Interest applies, and a part of the expense may be disallowed when computing taxable income.
How are TDS defaults corrected?
Defaults shown on TRACES are cleared by filing a correction statement and paying any short payment or interest.