TDS Advisory

Tax Deducted at Source (TDS) is a means of collecting income tax in India, whereby the tax is deducted at the origin of income. It is an essential part of compliance for all businesses and requires management to ensure accuracy and adherence to all regulatory obligations. At GenZCFO, our TDS Advisory and GST Advisory Services are here to support businesses in the complexities of TDS regulations, ensuring timely compliance and minimizing potential financial risks. Our expert team led by Chartered Accountants provides guidance on all aspects of TDS, from understanding basic requirements to handling advanced compliance strategies and we ensure that your business not only meets all legal requirements but also optimizes TDS processes to improve cash flow planning and reduce unnecessary tax burdens.

TDS (Tax Deducted at Source) forms are a series of documents required by the Income Tax Department of India for the reporting of tax deducted at source. Each form corresponds to different types of TDS transactions, and they include:

Form 24Q: For TDS details on salaries.

Form 26Q: For TDS on payments other than salaries, applicable to residents.

Form 27Q: For TDS on payments made to non-residents.

Form 27EQ: For Tax Collected at Source (TCS).

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What is TAN and is it mandatory to deduct TDS

TAN, or Tax Deduction and Collection Account Number, is a 10-digit alphanumeric number issued by the Income Tax Department. It is required by all entities that are responsible for deducting or collecting tax at source, commonly known as TDS. It is mandatory for businesses and other entities to obtain a TAN if they are required to deduct tax at source, as per the provisions under the Income Tax Act, 1961. Failure to apply for TAN or to quote the TAN in specified transactions like TDS returns and TDS payments can result in penalties.

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TDS Returns Services 

TDS Returns are regular filings that every tax deductor must submit to the Income Tax Department of India. These returns detail all TDS related transactions during a given quarter and must be submitted using the prescribed forms. GenZCFO provides professional services for managing and filing TDS Returns to ensure compliance with tax regulations. Our team assists with the accurate preparation and timely submission of these returns, handling all the necessary documentation and procedures. We ensure that all details, such as PAN of deductees, amount of tax paid, and TDS challan information, are correctly reported to avoid any discrepancies or potential penalties. Our services also include correcting any errors in previously filed returns and providing detailed reports to keep you informed about your TDS obligations. With GenZCFO, you can streamline your TDS management process, ensuring accuracy and compliance in every aspect of TDS filing.

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TDS Compliance Services

TDS compliance requires an understanding of various regulations and timely actions. GenZCFO offers extensive TDS compliance services that include accurate assessment of TDS liabilities, diligent filing of TDS returns, and ensuring all TDS deductions are correctly handled according to the stipulated timelines. Our team keeps abreast of the latest amendments in TDS regulations to safeguard your business against any compliance discrepancies. We handle detailed documentation and verification processes, provide assistance in obtaining lower deduction certificates if applicable, and manage regular TDS deposits to the government. By entrusting your TDS compliance to GenZCFO, you gain peace of mind knowing that your business adheres to all regulatory requirements efficiently and effectively including book-keeping.

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TDS Consulting Services

At GenZCFO, our TDS consulting services are here to provide strategic advice on managing TDS more effectively within your organization as we offer consultations on optimizing TDS deductions for various transactions, which not only ensures compliance but also enhances financial efficiency. Our experts analyze your business transactions and financial practices to recommend the most beneficial TDS strategies, addressing industry-specific challenges and opportunities. We assist in structuring contracts and payments in a manner that is compliant yet tax-efficient, helping you get through the intricacies of TDS regulations with ease.

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Customized TDS Management Solutions

Understanding that each business has unique needs, GenZCFO provides customized TDS management solutions that cater specifically to your operational requirements. Whether it’s integrating TDS management into your existing financial systems, automating TDS calculations, or developing bespoke reporting mechanisms, our solutions are designed to enhance the accuracy and efficiency of your TDS processes. We work closely with your finance teams to implement these tailored solutions, ensuring they seamlessly align with your business workflows and objectives.

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Technology Solutions for TDS Management

To streamline and simplify the TDS management process, GenZCFO utilizes technology solutions. Our advanced software tools are capable of automating TDS calculations, ensuring error-free compliance, and facilitating quick filings. We integrate these technologies with your existing financial systems, providing a unified platform that enhances data visibility and allows for real-time tracking of TDS obligations. This technological integration not only saves time but also reduces the likelihood of human error, ensuring that your TDS management is both efficient and reliable.

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Training and Support

GenZCFO is committed to empowering your team with the knowledge and skills necessary to manage TDS effectively as we provide training programs that cover the fundamentals of TDS regulations, recent updates, and best practices for compliance. Our support extends beyond training sessions, offering ongoing assistance to resolve any TDS-related queries or issues that may arise. This continuous educational support ensures that your team remains proficient in TDS management and can handle various TDS tasks confidently and independently.

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TDS Reconciliation and Health Checks

To ensure that all TDS-related activities are correctly accounted for, GenZCFO offers TDS reconciliation and health check services. These services involve reviewing and reconciling TDS entries with actual transactions and correcting any discrepancies that are identified. Regular health checks help maintain the integrity of your financial records and prevent any compliance-related issues during audits. By conducting these detailed reviews periodically, GenZCFO helps you maintain a clean and compliant TDS record, enhancing your company’s credibility and compliance status.

 

Section	Nature of Payment	Threshold (Rs.)	Individual / HUF TDS Rates (%)	Others
				TDS Rate (%)
192	Salaries	Rs. 2,50,000	Slab Rates	Slab Rates
192A	Premature EPF withdrawal*	Rs. 50,000	10%	10%
193	– TDS on interest on securities***	Rs. 10,000	10%	10%
194	Payment of dividend	Rs. 5,000	10%	10%
194A	Interest issued by banks or post offices on deposits	Rs. 40,000	10%	10%
		Rs. 50,000 (For senior citizens)
194A	Interest by others apart from on securities	Rs. 5,000	10%	10%
194B	Amounts that someone has won through lotteries, puzzles, or games	Aggregate of Rs. 10,000**	30%	30%
194BB	Amounts that someone has won from horse races	Rs. 10,000	30%	30%
194C	Payments to contractor or sub-contractor – Single Payments	Rs. 30,000	1%	2%
194C	Payments to contractor/sub-contractor – Aggregate Payments	Rs. 1,00,000	1%	2%
194D	Payment of insurance commission to domestic companies	Rs. 15,000	NA	10%
194D	Payment of insurance commission to companies other than domestic ones	Rs. 15,000	5%	NA
194DA	Maturity of Life Insurance Policy	Rs. 1,00,000	5%	5%
194EE	Payment of an amount standing to the credit of an individual under NSS (National Savings Scheme)	Rs. 2500	10%	10%
194F	Payment of repurchase of unit by UTI (Unit Trust of India) or any mutual fund	No Limit	20%	20%
194G	Payments or commission on sale of lottery tickets	Rs. 15,000	5%	5%
194H	Commission or brokerage	Rs. 15,000	5%	5%
194I	Rent of land, building, or furniture	Rs. 2,40,000	10%	10%
194I	Rent of plant and machinery	Rs. 2,40,000	2%	2%
194IA	Payment for transfer of immovable property other than agricultural land	Rs. 50,00,000	1%	1%
194IB	Rent payment that is made by an individual or HUF not covered under payment 194I	Rs. 50,000 (per month)	5%	NA
194IC	Payment that are made under Joint Development Agreement (JDA) to Individual/HUF	No Limit	10%	10%
194J	Fees paid for professional services	Rs. 30,000	10%	10%
194J	Amount paid for technical services	Rs. 30,000	2%	2%
194J	Amounts paid as royalty for sale/distribution/exhibition of cinematographic films	Rs. 30,000	2%	2%
194K	Payment of income for units of a mutual fund, for example- dividends	Rs. 5,000	10%	10%
194LA	Payment made for compensation for acquiring certain immovable property	Rs. 2,50,000	10%	10%
194LB	Payment of interest on infrastructure  bonds to Non-Resident Indians	NA	5%	5%
194LBA(1)	Certain income distributed by a business trust among its unit holder	NA	10%	10%
194LD	Payment of interest on rupee-denominated bonds, municipal debt security, and government securities	NA	5%	5%
194M	Amounts paid for contract, brokerage, commission or professional fee (other than 194C, 194H, 194J)	Rs. 50,00,000	5%	5%
194N	In case cash withdrawal over a certain amount takes place from the bank, and ITR is filed	Rs. 1,00,00,000	2%	2%
194N	In case cash withdrawal takes place from a bank and one does not file ITR	Rs. 20,00,000	2%	2%
194O	Amount paid for the sale of products/services by e-commerce service providers via their digital platform	Rs. 5,00,000	1%	1%
194Q	Payments made for the purchase of goods	Rs. 50,00,000	0.10%	0.10%
194S	TDS on the payment of any crypto or other virtual asset	NA	1%	1%
206AA	TDS for non-availability of PAN	NA	At a rate higher of	20%
			1. Specified rate as per the act
			2. 20%
			3. Rate in force
206AB	TDS on non-filers of Income tax return	NA	Rate higher of:
			1. 5%
			2. Twice the mentioned rate in provision
			3. Rate in force

Some FAQs That GenZCFO Often Get Asked