Lawbridge AssociatesTDS / TCS Compliance
TAN registration, monthly TDS/TCS working, quarterly return filing and Form 16/16A certificate issuance — kept current with Form 26AS and AIS so credit is never lost to mismatches.
What is TDS / TCS Compliance?
Tax Deducted at Source (TDS) requires a business to deduct tax while making specified payments — salary, rent above the prescribed threshold, professional or contractor fees, interest and commission — and deposit it with the government under a Tax Deduction and Collection Account Number (TAN). Tax Collected at Source (TCS) works the other way: a seller collects tax from the buyer at the time of sale for specified goods or high-value transactions. Both require quarterly returns and issuance of certificates to the other party.
Who Needs This
- Any business or proprietorship paying salaries, rent, professional fees or contractor payments above the applicable threshold
- Companies and LLPs, which are deductors for most specified payments regardless of turnover
- Sellers of goods, scrap or specified categories liable to collect TCS on qualifying sales
- Anyone who has received a TDS/TCS default notice or mismatch intimation from the department
Why It Matters
Missing a TDS deduction, depositing it late, or filing the quarterly return late all carry separate consequences — late filing fees under Section 234E accrue per day, interest is charged for delayed deduction or deposit, and the deductee’s tax credit does not reflect in their Form 26AS or AIS until the return is filed correctly. Getting this wrong routinely causes vendor and employee disputes over missing tax credit, quite apart from the department’s own penalties.
Key Benefits
- TDS/TCS deducted and deposited on time, avoiding interest and late fees
- Quarterly returns filed correctly the first time, avoiding correction statements
- Form 16/16A certificates issued promptly so deductees can file their own returns
- Fewer disputes with employees, contractors and vendors over missing tax credit
Our Scope of Assistance
- TAN registration for businesses that do not already have one
- Monthly TDS/TCS rate determination and working across salary, rent, professional and contractor payments
- Quarterly return filing — Forms 24Q, 26Q, 27Q and 27EQ as applicable
- Correction statements for prior-quarter errors and mismatches
- Form 16/16A certificate generation and TRACES portal notice resolution
Documents Required
- TAN and PAN of the deductor
- Payment details — salary registers, rent agreements, vendor/contractor invoices as applicable
- PAN of each deductee (mandatory for correct credit and to avoid the higher non-PAN TDS rate)
- Challan details of tax already deposited for the period
Our Process
TAN & setup
TAN obtained if not already held, and payment categories mapped to TDS/TCS sections.
Monthly working
Tax computed and deducted correctly on each specified payment.
Deposit
Deducted tax deposited with the government within the statutory due date.
Quarterly return
Form 24Q/26Q/27Q/27EQ filed with the department for the quarter.
Certificates
Form 16/16A issued to employees and vendors, and 26AS/AIS reconciled.
Government Fee & Professional Fee
Government fee
TAN application has a nominal government fee; late filing fees and interest apply only if a deadline is missed — REQUIRES CONFIRMATION for the current fee and rates.
Professional fee
Depends on the number of deductees and payment categories handled each quarter. Contact us for a quote.
Typical Timeline
TDS/TCS is an ongoing, quarterly compliance rather than a one-time filing — deposits are due monthly and returns quarterly. We work to statutory due dates; the applicable deadlines for a given quarter depend on the current Income Tax Department calendar.
Common Mistakes to Avoid
- Deducting TDS at the wrong rate for the type of payment or the deductee’s PAN status
- Depositing tax late, which attracts interest even if the return is filed on time
- Quoting an incorrect or missing PAN for a deductee, which blocks their credit
- Not reconciling TRACES/26AS defaults promptly, letting a small mismatch turn into a demand notice
Frequently Asked Questions
Do I need a TAN if I already have a PAN?
Yes — TAN and PAN serve different purposes. TAN is compulsory for anyone required to deduct or collect tax at source, separate from the business’s own PAN.
What happens if I deduct TDS but file the return late?
A late filing fee under Section 234E accrues per day of delay, in addition to any interest for late deposit of the tax itself — REQUIRES CONFIRMATION for the current fee and interest rates.
Does a small business or individual proprietor need to deduct TDS?
Individuals and HUFs not subject to tax audit generally have limited TDS obligations, mainly on rent above the prescribed monthly threshold; businesses under audit, companies and LLPs have broader deduction obligations.
How do I know if my TDS credit is showing correctly?
Check Form 26AS or the Annual Information Statement (AIS) on the income tax portal — if a deduction does not appear there, the deductor’s return needs to be filed or corrected.