What is TDS?

TDS means Tax Deducted at Source. When you pay salary, rent, a contractor or a professional above the limit, you deduct tax first and send that amount to the government. The balance is paid to the person.

Who needs to deduct TDS?

Companies and firms deduct TDS as a rule on specified payments. Individuals and HUFs deduct TDS when their accounts are audited, or when a section applies to them (for example, rent above the limit). If you deduct TDS, you also need a TAN.

What is TAN?

TAN is the Tax Deduction and Collection Account Number. Without TAN you cannot deposit TDS or file the return. We handle TAN registration if you do not have one yet.

Deductor and deductee

• Deductor — the person who cuts tax and files the return (you).
• Deductee — the person whose payment was taxed (employee, landlord, contractor, consultant).

Deposit and return — two different steps

• Deposit the tax to the government, usually by the 7th of the next month.
• File the quarterly TDS return that reports whom you paid and how much you deducted.

Common TDS returns

• 24Q — TDS on salary
• 26Q — TDS on other payments to residents (rent, contractors, professional fees, interest)
• 27Q — payments to non-residents

Returns are quarterly. Typical due dates are 31 July, 31 October, 31 January and 31 May.

Form 16 and Form 16A

After the return is accepted, certificates go out to the deductee. Form 16 is for salary. Form 16A is for other payments. These must match the return.

What we do

• TAN registration if needed
• Prepare the quarterly return from your payment records
• File it and share the acknowledgement
• Tell you what was deducted, what was filed, and what to keep

Papers usually needed

• TAN and login details
• PAN of each deductee
• Payment list with dates and amounts
• Challan / deposit details
• Salary workings, if 24Q applies