Tax Deducted at Source (TDS) is one of the most important compliance requirements for businesses in India. If your business makes certain payments (salaries, rent, professional fees, etc.), you're required to deduct TDS and deposit it with the government. Here's everything businesses in Coimbatore need to know about TDS compliance.
What is TDS?
TDS is a mechanism where the person making a payment deducts tax at a prescribed rate before making the payment to the recipient. The deducted amount is then deposited with the government on behalf of the recipient.
Common TDS Sections for Businesses
Section 192: TDS on salary payments
Section 194A: TDS on interest (other than on securities)
Section 194C: TDS on payments to contractors
Section 194H: TDS on commission or brokerage
Section 194I: TDS on rent payments
Section 194J: TDS on professional/technical fees
Section 194O: TDS on e-commerce transactions
TDS Filing Deadlines
Quarterly Returns
Q1 (April-June): Due by July 31
Q2 (July-September): Due by October 31
Q3 (October-December): Due by January 31
Q4 (January-March): Due by May 31
TDS Deposit Deadlines
Government deductors: Same day
Other deductors: 7th of the following month
March deductions: April 30
Key TDS Compliance Requirements
1. Obtain TAN: Apply for a Tax Deduction and Collection Account Number
2. Deduct TDS: At the correct rate on applicable payments
3. Deposit TDS: Within the prescribed time limits
4. File Quarterly Returns: Form 24Q (salary), 26Q (non-salary), 27Q (NRI payments)
5. Issue TDS Certificates: Form 16 (salary), Form 16A (non-salary)
Penalties for Non-Compliance
Late Deduction: Interest at 1% per month
Late Deposit: Interest at 1.5% per month
Late Filing: Rs. 200 per day (maximum: TDS amount)
Non-Filing: Penalty up to Rs. 1,00,000
Expert TDS Compliance Services in Coimbatore
WINTRUST SOLUTIONS provides comprehensive TDS compliance services including quarterly return filing, TDS certificate generation, reconciliation, and year-end compliance. Stay penalty-free with our expert team.
Contact us today!