TDS and TCS Compliance

TDS is tax deducted by the payer from specified payments (like salary, rent or professional fees) before paying the recipient. TCS is tax collected by the seller from the buyer on certain sales. Both are deposited with the government and reported.

TDS/TCS returns are filed quarterly — 24Q for salary TDS, 26Q for other domestic payments, 27Q for payments to non-residents, and 27EQ for TCS.

Form 16 is the TDS certificate for salary issued by an employer, while Form 16A is the TDS certificate for non-salary payments. They allow deductees to claim credit for the tax deducted.

Late deposit attracts interest, and late filing of returns attracts a fee per day plus possible penalties. Non- deduction or non-payment can also disallow the related expense, so timely compliance is important.

Yes. Karthick Vijayakumar & Associates is a firm of Company Secretaries based in Chennai, Tamil Nadu, serving clients across India. We handle TDS and TCS compliance for businesses in Chennai, throughout Tamil Nadu, and pan-India — with filings done online with the MCA, ROC and other authorities, so your location is no barrier.

Persons making specified payments such as salary, rent, professional fees, interest and contractor payments, above the thresholds, must deduct tax at source and deposit it.

A Tax Deduction and Collection Account Number, a 10-character number that every deductor must obtain and quote in TDS returns and challans.

Generally by the seventh of the following month, with special rules for March and for certain cases. The due dates should be confirmed for the period.

Form 24Q for salary and 26Q for other resident payments, 27Q for non-residents, and 27EQ for TCS, filed quarterly.

Interest accrues for each month or part of a month of delay at the prescribed rate, and must be paid before filing returns.

A certificate from the tax officer allowing a payee to receive payments with TDS at a lower or nil rate, in suitable cases.

Declarations by eligible payees to request that no TDS be deducted on specified income, such as interest, if their total income is below the taxable limit.

They differ by the type of payment and the payee, and are changed from time to time. The applicable rate should be checked for each payment.

A fee for each day of delay, subject to a cap, and possible penalty, so timely filing is important.

The deductee can see the credit in Form 26AS and AIS and claim it in the return, provided the deductor has filed the TDS statement properly.

Payments to non-residents have different rates and may be affected by tax treaties, and require Form 15CA and 15CB in many cases.

Short deduction, non-deduction, non-deposit or late deposit, which the TRACES portal shows in the default statement.

Yes. A correction statement can be filed to fix errors, such as incorrect PAN or challan details.

It depends on how the invoice shows the GST. Where it is shown separately, the TDS may be deducted on the base value, subject to the conditions.

Tax collected at source by a seller on specified goods and certain transactions, such as sale of scrap or overseas remittances, and deposited with the Government.