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TDS handled end to end — deposits, statements, corrections, demand closure

Monthly deposits by the 7th, quarterly statements on the new Income-tax Act 2025 forms (Form 138/140/144 — the old 24Q/26Q/27Q), certificates on time and TRACES defaults closed. Q2 FY 2026-27 statements fall due 31 October 2026.

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Who this is for
  • Businesses deducting on salaries, contractors, rent or professional fees
  • Deductors with TRACES demands, short-deduction or late-fee defaults
  • Property buyers filing Form 26QB, including purchases from NRIs
  • Startups running payroll and vendor payments for the first time
What you get
  • Deduction check against current rates and thresholds before payment
  • Monthly challan planning so interest never accrues silently
  • Quarterly statements filed after PAN and rate validation
  • Form 16/16A generated from TRACES on schedule
  • Correction statements and demand closure with interest workings
What we need from you
  • TAN and deductee master — PAN, section, amounts
  • Payroll register and vendor payment ledger
  • Challan details of deposits already made
  • TRACES and income-tax portal access

TDS is the compliance where small process failures compound fastest — a wrong section here, a late deposit there, and suddenly interest, late fees and disallowance risk sit on top of vendor disputes over certificates. A controlled monthly cycle keeps deduction, deposit, return and certificate in one auditable line.

When this service is typically required

  • Salaries, contractor payments, rent, professional fees or commission cross TDS thresholds
  • Goods purchases attract 194Q — how 194Q works
  • Quarterly returns are due — the new forms under the 2025 Act
  • TRACES demands (short deduction/late fee) have accumulated unattended
  • Property purchase, NRI payments or foreign remittances trigger one-off obligations (26QB, 195, 15CA/CB)

Indicative scope

  • Monthly TDS computation by section and threshold, challan deposits by the 7th
  • Quarterly return preparation and filing; PAN/rate validation before submission
  • Form 16/16A generation and distribution from TRACES
  • TRACES demand reconciliation and correction statements
  • Lower-deduction certificate (197) applications where justified

Key points at a glance

ItemPosition
DepositBy the 7th of the following month (30 April for March, non-government)
Quarterly returns31 July / 31 October / 31 January / 31 May
Late filing fee₹200 per day under 234E, capped at the TDS amount
Late deduction/deposit interest1% / 1.5% per month respectively
New-Act mappingSections renumbered from FY 2026-27 — old→new mapping

Deliverables

Filed returns with acknowledgements, challan-mapping working papers, issued certificates, a demand-status tracker at zero-or-explained, and a section-wise deduction register your auditor can tie to the ledger.

Information and documents generally required

Payment and expense ledgers, vendor PANs and declarations, salary structures and investment proofs for 192, prior returns and TRACES access, and agreements for rent/contract/professional payments where classification matters.

Engagement process

01 · Setup reviewSections, thresholds and vendor master validated once.
02 · Monthly cycleCompute → deposit → reconcile challans.
03 · Quarterly filingReturn validated and filed; certificates issued.
04 · Demand hygieneTRACES checked after each filing; corrections filed.

Client responsibilities, assumptions and reliance

Complete payment data and vendor PANs on the agreed calendar are the client's side of the bargain; classification calls are recommended in writing where payments sit near section boundaries.

Scope exclusions

TDS assessments/appeals, 26QB/195 one-off transactions and 15CA/CB certification are scoped separately (available as distinct services). Past-year demand clean-ups are a defined project, not part of the monthly retainer by default.

Frequently asked questions

Vendors are refusing tax deduction. Can we skip TDS?

No — the deductor bears the liability, interest and disallowance risk. Where a vendor claims exemption or lower rate, the law provides specific routes (declarations, 197 certificates); those are implemented, not informal skips.

We discovered months of missed TDS. Now what?

Quantify honestly: deduct/deposit with interest, file or correct returns, and document the remediation. Voluntary correction before a notice is materially cheaper than after.

Can old TRACES demands be removed?

Many demands are challan-mapping or PAN errors curable by correction statements; genuine shortfalls need payment. Each line is classified before anything is promised — no blanket assurances.

Do you handle salary TDS with proof verification?

Yes — 192 computation with declared regimes, proof verification at year-end, and Form 16 issuance are within the payroll-TDS scope.

What changes under the Income-tax Act, 2025?

From FY 2026-27 the operative sections and return forms changed while the mechanics largely carried over. Filings are made under the new provisions with the mapping documented in the working papers.

How are fees for TDS compliance decided?

By volume and complexity — the number of deductees, the sections involved and whether past defaults need clean-up. Ongoing compliance runs as a fixed retainer quoted in writing before work starts; past-year demand clean-ups are scoped separately as a defined project. Government interest, late fees and taxes are always separate, paid at actuals.

Discuss this requirement

The applicable scope, documentation, professional responsibilities and timelines are agreed in an engagement letter before commencement.

TDS on Property / NRI PurchaseForm 15CA/15CBPayroll ComplianceRequest a Scope Discussion

This page describes the service in general terms as on 6 August 2026 and is not professional advice or an assurance of any outcome. Registrations, filings, refunds and departmental outcomes depend on facts and the concerned authority. Figures and due dates change; verify current positions before acting.

Who this service is for

Growing businesses paying vendorsContractors (194C), professionals (194J), rent (194-I), commission — once a tax audit applies, nearly every payment has a TDS angle. CA for MSMEs.
Employers running payrollSalary TDS under Section 192 with regime declarations, proof verification and Form 16 issuance every quarter-end.
Property buyers1% under 194-IA on any purchase of ₹50 lakh plus — and a very different 195 regime when the seller is an NRI. Lower-TDS certificates.
Startups and firms with new-era paymentsPartner remuneration (194T, new from FY 2025-26), e-commerce settlements (194-O), crypto (194S), perquisites (194R). CA for startup founders.
Quick finder

TDS on this payment — rate, threshold, section (FY 2026-27)

Covers the payments we see most. All 27 sections with notes: full TDS Rate Finder.

Fees — what TDS compliance actually costs

What are the statutory amounts at stake?

Late deposit interest runs at 1.5% a month, late filing of statements at ₹200 a day under Section 234E (capped at the TDS amount), and wrong or missed deduction can mean expense disallowance under 40(a)(ia). The compliance fee is small next to any one of these.

What shapes the professional fee?

Deductee count and data quality, number of forms each quarter (24Q/26Q/27Q), correction-statement history on TRACES, and whether payroll TDS with proof verification is in scope.

How do we quote?

A fixed per-quarter written quote covering challan mapping, statement filing, Form 16/16A generation and demand tracking — corrections for periods we filed are included. Get the quote.

Filing season — AY 2026-27ITR filing for FY 2025-26 is on: non-audit due 31 July 2026, audit cases 31 October 2026. Reconcile AIS/26AS before you file.How to choose the right ITR form →
Key due dates at a glance — FY 2026-27
ComplianceDueNote
ITR (non-audit)31 July 2026Belated/revised until 31 Dec 2026
Tax audit report30 September 2026Form 3CA/3CB-3CD
ITR (audit cases)31 October 2026TP cases: 30 November
Advance tax instalments15 Jun / 15 Sep / 15 Dec / 15 MarInterest u/s 234C for shortfall
TDS returns (24Q/26Q)31 Jul / 31 Oct / 31 Jan / 31 MayLate fee Rs 200/day u/s 234E

Dates as generally applicable on 15 July 2026; extensions/notifications can change them — confirm current dates before relying.

What's Included

  • Monthly TDS computation by section and threshold, challan deposits by the 7th
  • Quarterly return preparation and filing; PAN/rate validation before submission
  • Form 16/16A generation and distribution from TRACES
  • TRACES demand reconciliation and correction statements
  • Lower-deduction certificate (197) applications where justified

Our Process

1
Setup review

Sections, thresholds and vendor master validated once.

2
Monthly cycle

Compute → deposit → reconcile challans.

3
Quarterly filing

Return validated and filed; certificates issued.

4
Demand hygiene

TRACES checked after each filing; corrections filed.

Get Started

Have questions about this service? Contact us for a free consultation.

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