Tax Deduction at Source refers to deducting tax from income at the point of payment. Entities and individuals who engage in tax deductions at the source are legally required to file TDS returns quarterly before the TDS due date, detailing the specifics of these deductions.

IndiaFilings provides expert assistance to streamline the process — from deposit of TDS online to filing TDS returns and reconciling them with TRACES and Form 26AS.

Who should deduct TDS?

Individuals, HUFs, firms, companies, and other entities required to deduct TDS under the Income Tax Act, 1961 depending on turnover and specific conditions.

Deposit of TDS

The deposit of TDS refers to the process of remitting the deducted TDS to the government within the prescribed TDS due date. Timely deposits are essential to avoid interest and penalties.

TDS Due Date

Usually by the 7th of the subsequent month. For TDS deducted in March the deposit rules may have special provisions for some government deductors — always verify the applicable schedule.

Penalty for Non-Compliance

Interest and penalties apply for late deduction, late remittance, and late filing or incorrect filing. Fees for late filing and penalties may be imposed by the assessing officer.