TDS deduction, deposit and quarterly return filing, handled end to end.

TDS compliance that doesn't trigger notices

TDS is deceptively easy to get wrong — the wrong section, the wrong rate, a missed deposit deadline, or a quarterly return that doesn't reconcile with Form 26AS. Any one of those triggers a mismatch notice, and mismatches compound: an error in Q1 shows up as a defect notice eight months later, well after the original numbers have left your memory.

We manage the full cycle — correct deduction at source on salaries, professional fees, rent and contractor payments, timely deposit of the challan, and accurate quarterly returns that reconcile cleanly with Form 26AS, so your vendors' credit isn't held up and you never see a defect notice for something we filed.

What's included

One engagement covers deduction through to certificate issuance:

How we run your TDS compliance

1. Payment classification

Every vendor and employee payment is mapped to the correct TDS section and rate before deduction.

2. Deduct, deposit, record

TDS is deducted at source, deposited via challan within the statutory window, and logged against each deductee.

3. Quarterly filing

Returns are prepared, reconciled against 26AS, and filed — followed by Form 16/16A issuance to every deductee.

What TDS mistakes actually cost

TDS feels like an administrative formality — deduct a small percentage, deposit it, file a return every quarter. But the Income Tax Act treats TDS defaults far more harshly than most founders expect, because the money you deduct isn't yours; you're holding it in trust for the government, and the penalties reflect that.

The most painful consequence is expense disallowance. If you fail to deduct TDS on a payment where it was required — or deduct it but don't deposit it in time — 30% of that expense can be disallowed under Section 40(a)(ia), meaning you pay income tax on money you actually spent. A single missed deduction on a large contractor or professional-fee payment can turn into a tax bill many times the size of the TDS itself.

On top of that sit the interest charges: 1% per month for late deduction and 1.5% per month for late deposit, calculated from the date the tax was deductible. Late filing of the quarterly return attracts a fee of ₹200 per day under Section 234E until the return is filed, and inaccurate returns can draw further penalty. Because TDS is a trust liability, persistent defaults can also create personal exposure for directors — this is not a liability that stays neatly inside the company.

Getting TDS right, not just filed

Most TDS problems don't happen at filing — they happen at the moment of payment, when someone picks the wrong section or rate, or misses that a payment needed deduction at all. Rent, professional fees, contractor payments, commission, and (above the threshold) the purchase of goods under Section 194Q each carry different rates and rules, and a payee without a valid PAN is deducted at a much higher rate. We get the treatment right at source, validate PANs before deduction, and keep a clean mapping of which payment falls under which section.

Because your salary payments also carry TDS, this work sits naturally alongside payroll compliance, and the deducted amounts have to tie back to your ledgers — which is why we prefer to run it in step with monthly accounting. Once onboarded, challans go out by the 7th of each month, quarterly returns (24Q, 26Q, 27Q) are filed on time, and Form 16/16A certificates are generated from TRACES so your people and vendors can claim their credit without chasing you.

Pricing

Pricing scales with the number of deductees and payment types you run each quarter. See our pricing page for indicative ranges, or get an exact, itemised quote in one call.

Frequently asked questions