What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Accurate identification and application of applicable TDS and TCS provisions.
- Timely preparation and filing of TDS and TCS statements.
- Reconciliation of TDS/TCS records with accounting data and tax credit information.
- Assistance with TDS and TCS payment and compliance timelines.
- Proper preparation and support for issuing TDS certificates.
- Identification and correction of reporting errors and mismatches.
- Reduced risk of interest, late fees, notices, and other compliance consequences.
How the engagement works
TDS and TCS requirements are governed by the applicable provisions of the Income-tax Act, 1961, Income-tax Rules, and related notifications and procedures. Depending on the nature of the payment or transaction, the applicable section, threshold, rate, timing of deduction or collection, deposit requirement, statement filing requirement, and certificate requirement may differ. Accurate classification of transactions and timely compliance are essential to avoid applicable interest, fees, disallowances, and other statutory consequences.
Scenario 1: A company makes salary, contractor, professional, rent, commission, interest, or other payments that may be subject to TDS.
Scenario 2: A business is required to collect TCS on specified transactions and needs assistance with calculation, collection, payment, and reporting.
Scenario 3: A company or firm has filed TDS returns but discovers mismatches between its records and the tax credit information reflected for deductees.
Scenario 4: A business has received a TDS or TCS-related notice and requires assistance in identifying the issue and completing the necessary compliance.
Scenario 5: A growing business wants to establish a systematic quarterly TDS/TCS compliance process to avoid missed deductions, deposits, or filings.
TDS/TCS Applicability & New Provisions Review
We review payments and transactions to identify applicable TDS/TCS provisions, including newly scrutinized provisions such as Section 194S (Virtual Digital Assets/Crypto) and Section 194BA (Online Gaming), alongside strict PAN-Aadhaar validation checks to prevent TRACES defaults.
TDS & TCS Computation
We assist in calculating the applicable tax deduction or collection based on the nature and value of the relevant transactions and applicable provisions.
Payment & Challan Compliance
We assist with timely deposit of deducted or collected tax and review relevant challan information for accurate reporting.
General questions
01What is TDS?
TDS, or Tax Deducted at Source, is a mechanism under which tax is deducted from specified payments at the time and rate prescribed under the Income-tax Act and deposited with the government on behalf of the recipient.
02What is TCS?
TCS, or Tax Collected at Source, is a mechanism under which tax is collected by specified persons on certain transactions or receipts at the applicable rate and deposited with the government as prescribed under the Income-tax Act.
03Who needs to file TDS returns?
Persons or entities required to deduct tax at source and meeting the applicable statutory requirements generally need to furnish TDS statements periodically. The exact filing requirements depend on the nature of deductions and the applicable provisions.
04How often are TDS and TCS returns filed?
TDS and TCS statements are generally filed on a quarterly basis, subject to the applicable provisions and prescribed due dates for the relevant statement.
05What happens if TDS is deducted but not deposited on time?
Delay in depositing TDS may result in applicable interest and other statutory consequences. Depending on the circumstances, there may also be additional compliance implications.
06Can you correct a TDS or TCS return after filing?
Yes. Where permitted, correction statements can be filed to rectify errors or omissions such as incorrect PAN details, amounts, challan information, or other reported particulars.
07Can you help with TDS/TCS notices and defaults?
Yes. We can review TDS/TCS notices, default reports, mismatches, and other communications and assist with reconciliation, correction, and appropriate compliance responses.
