Once your business crosses the applicability rules, you become a tax collector for the government: deducting tax at source on specified payments before you make them.
Payments that commonly attract TDS
- Salaries above the taxable limit
- Contractor and job-work payments beyond notified thresholds
- Professional and technical fees beyond the threshold
- Rent above the annual limit
- Commission, interest and certain purchases as notified
The cycle you sign up for
- Deduct at the prescribed rate when paying or crediting, whichever is earlier
- Deposit by the notified monthly date
- File quarterly returns
- Issue certificates so payees can claim the credit
What non-compliance costs
Interest for late deduction and late deposit, per-day late-filing fees for returns, and — the quiet killer — disallowance of the expense itself in your income computation where TDS obligations were ignored.
Our TDS service runs this cycle end to end — get a fixed quarterly quote.
