TDS Compliance and Return Filing: Deduction, Deposit, 24Q and 26Q
Deduct at the right section, deposit on time, file quarterly TDS statements and issue Form 16 and 16A without defaults.
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TDS compliance is the cycle of deducting tax at source on specified payments, depositing it with the government and reporting it in quarterly statements, and it applies to employers, companies, firms and many individuals who pay salary, rent, professional fees, contractor charges, interest or commission. Each step has its own deadline, and a gap in any one of them produces interest, late fees or disallowance of the expense. Our team identifies the applicable section for every payment, computes the deduction, prepares the challans, files the TDS statements and handles certificates and corrections on TRACES.
Who provides this service: our team of Chartered Accountants.
Who Needs TDS Compliance?
- Employers who deduct tax from salary and must issue Form 16 every year
- Companies, firms and LLPs paying professional fees, rent, contractor charges or commission
- Businesses that pay interest, or make payments to non-residents that involve withholding
- Individuals and HUFs who fall within the deduction rules for rent, property purchase or contract payments
- Deductors who have received a default or short deduction notice and need it corrected
Key Benefits
- Payment-by-payment mapping to the correct TDS section, so deduction is neither missed nor applied at the wrong rate
- TAN registration support for deductors who do not yet have one, and checks on PAN status of every deductee
- Challan preparation and deposit reminders that keep you ahead of the monthly deposit deadline
- Quarterly statements in Forms 24Q, 26Q, 27Q and 27EQ prepared and filed with matching challan details
- Form 16 and Form 16A issued from TRACES, with correction statements where the data in 26AS differs
- Guidance on lower or nil deduction certificates and on the higher-rate rules that apply when PAN is missing
How It Works
Review your payments and TAN details
We go through your payment categories, salary, rent, professional fees, contractors and interest, confirm your TAN and registration status, and decide which TDS sections and returns apply to your business.
Collect deductee data and validate PAN
You share vendor, employee and landlord lists with PAN. We verify the PANs, flag the operative-status issues that attract higher deduction and note which deductees claim lower deduction certificates.
Compute TDS and deposit by challan
For each month we compute the tax to deduct from your payment register, prepare the challan and share the amount to be paid, so deposit is made before the monthly deadline and not after it.
Prepare and file quarterly TDS statements
We prepare Form 24Q for salary and Forms 26Q, 27Q or 27EQ for other payments, map each challan correctly, validate the file and submit it before the quarterly due date.
Issue Form 16 and Form 16A
After the statement is processed we download the certificates from TRACES, check them against your records and share them with employees, vendors and other deductees so they can claim credit in their own returns.
Correct defaults and respond to notices
If TRACES shows a short deduction, late deposit or a default on a processed statement, we file correction statements, compute any interest and late fee, and draft the reply to the notice.
Documents Required
- TAN allotment letter and the deductor’s PAN
- Payment register or ledger showing the nature, date and amount of every payment subject to TDS
- Salary register and details of each employee’s declared investments, for Form 24Q
- PAN and address of every deductee, with PAN status checked
- Invoices, agreements or rent receipts supporting the nature of the payment
- Lower or nil deduction certificates received from deductees, if any
- Challan details of earlier TDS deposits and previously filed quarterly statements
- TRACES login and income tax portal access details, or an authorisation for our team
Timeline and Fees
Indicative timeline: Monthly work is scheduled around the deposit deadline and quarterly statements around the filing deadline, both set by the Income Tax Department. Correction statements and notice replies take a few working days to a few weeks.
Professional fee: The fee depends on the number of deductees, the mix of sections, the volume of payments each month, and whether you want salary TDS and certificates included. Contact our team for a written quote after sharing a sample payment register.
What Can Go Wrong if This Is Missed or Done Incorrectly
- Interest is charged on tax not deducted, or deducted but deposited late, and must be paid before filing
- A late fee applies per day for each late quarterly statement, and a penalty can follow for continued default
- A part of the expense can be disallowed in the payer’s own return when tax was not deducted or deposited on time
- Wrong PAN or challan details in the statement prevent the deductee from getting credit, which strains vendor and employee relationships
Frequently Asked Questions
Who is required to deduct TDS?
Anyone who makes a specified payment and is covered by the TDS provisions must deduct tax, and this includes companies, firms, LLPs, employers and, for certain payments, individuals and HUFs. Whether you must deduct depends on the type of payment, its size and your own status. We map your payments to the sections to settle this.
When must TDS be deposited and the return filed?
TDS must generally be deposited by a monthly deadline after the month of deduction, with a different date for the final month of the year, and statements are filed quarterly. Because these dates are fixed by the Income Tax Rules and can be changed by notification, we work from the current calendar on the income tax portal.
What happens if I deduct TDS but deposit it late?
Interest runs from the date of deduction until the date of deposit, and this interest must be paid with the challan. Delay also affects the deductee, who cannot claim credit until the deposit is reflected in Form 26AS. Persistent default can lead to notices, so we diarise the monthly deposit.
What is TAN and do I need one?
TAN is the Tax Deduction and Collection Account Number, a ten-character alphanumeric identifier that a deductor must quote on challans, statements and certificates. If you are liable to deduct or collect tax, you need one. Quoting the PAN in place of TAN is not accepted, and wrong TAN details create mismatches in the statement.
What is the difference between Form 16 and Form 16A?
Form 16 is the TDS certificate for salary paid to an employee, built from Form 24Q. Form 16A is the certificate for non-salary payments such as professional fees, rent or interest, built from the relevant quarterly statements. Both are generated through TRACES and give the recipient the proof needed to claim credit.
Can a mistake in a filed TDS return be corrected?
Yes. A correction statement can be filed on TRACES to fix a wrong PAN, challan mapping, deduction amount or deductee detail. Corrections are easiest when done soon after the original filing, because Form 26AS of the deductee will not show the right credit until the processed statement is corrected.
Official Sources
Rules, forms and fees change. Check the current position on the official portal:
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Last reviewed: . Laws, fees and procedures change; check the official portal before you act.
Disclaimer: The information on this page is for general informational purposes only and does not constitute professional legal, tax or compliance advice. Requirements vary by situation. Please consult a qualified CA or CS for advice specific to your needs. Government fees and timelines are subject to change; verify with the relevant authority before proceeding.