TDS deducted, deposited, and filed correctly — every month.

Our transparent monthly pricing:

• Basic TDS Plan: ₹2,000/quarter — salary Sec 192 + limited non-salary sections (194C, 194J, 194H, 194I, 194T)
• Growth TDS Plan: ₹5,000/quarter — full multi-section coverage + non-resident 27Q + TCS 27EQ + property/rent 26QB/26QC + 194Q buyer TDS
• Enterprise TDS + Payroll: ₹12,000/month — full TDS suite + monthly payroll (up to 100 employees) + salary structure optimisation + ESOP handling + investment declaration verification

Plus GST @ 18% on professional fees (fully available as ITC for GST-registered businesses).

What's NOT included in monthly fees (billed separately as needed):

• Form 15CA + Form 15CB (CA certificate for non-resident remittance): ₹2,500-₹7,500 per remittance
• Lower deduction certificate application (Section 197): ₹5,000-₹15,000
• CPC-TDS default resolution beyond 3/year: ₹1,500 per correction statement
• TAN registration (fresh): ₹800 + govt fee
• Multi-state PT registration: separate service
• ITR filing for key executives (Enterprise plan optional): ₹5,000-₹15,000 per return

Government fees (statutory):

• TAN application fee: ₹65 (Aadhaar-authenticated) or ₹65 + physical form fee
• Late fee: ₹200/day capped at TDS amount (Section 234E)
• Interest: 1% pm delayed deduction + 1.5% pm delayed deposit (Section 201(1A))
• Correction statement: no filing fee (only if pursuing default resolution)
• Form 26QB/26QC/26QD/26QE: no filing fee (challan-cum-statement)

Cost comparison vs in-house:

• In-house junior accountant for TDS: ₹25,000-₹40,000/month + PF/ESI/gratuity + software (~₹5,000/quarter for FVU utility + TRACES)
• Our Growth TDS Plan: ₹5,000/quarter + GST

Break-even math:

• Single Section 234E late fee: ~₹6,000-₹20,000 per quarterly return
• Section 40(a)(ia) disallowance on missed TDS: ~30% of expense = major cost
• Our annual Growth Plan: ₹96,000
• ROI: 3-6 months of retainer paid back by avoiding 1-2 default incidents

Yes — all TDS return filing expenses are fully tax deductible under Section 37(1) of the Income Tax Act 1961 as ordinary revenue expenses.

What's fully deductible:

• Our monthly retainer fee (₹2,000 to ₹12,000)
• GST @ 18% on our fees (as ITC if GST-registered, otherwise as expense)
• TDS software subscriptions
• FVU utility charges
• Bank charges for TDS challans
• TAN application fees
• Form 15CA/15CB CA certification fees
• Lower deduction certificate application costs
• Late fees paid under Section 234E (allowed as business expense)
• Interest under Section 201(1A) (also allowed under Section 37)

What's NOT deductible:

• Penalty under Section 271C for failure to deduct TDS (bad-in-nature penalty)
• Prosecution-related expenses under Section 276B
• Income tax itself

Critical: Section 40(a)(ia) disallowance for missed/delayed TDS:

• If TDS on a payment was not deducted at all: 30% of the expense disallowed permanently for that FY
• If TDS was deducted but not deposited by due date of return filing: 30% disallowed but allowed in the year of eventual deposit
• For Section 194T partner payments read with Section 40(b), disallowance can be full amount of remuneration if procedure not followed
• This makes on-time compliance critical — the disallowance cost far exceeds retainer cost

GST ITC available on our professional fees:

• 18% GST on our fees is fully creditable if your business is GST-registered
• Our invoice includes GSTIN + flows to your GSTR-2B
• Claim ITC in the month our invoice appears in GSTR-2B

What it costs, all-in:

• Growth TDS Plan ₹5,000/quarter + 18% GST
• If you are GST-registered, the GST on our fee is available as input tax credit
• The fee itself is a deductible business expense

Three separate consequences for TDS non-compliance:

1. Section 234E Late Fee (return filing delay):

• Rate: ₹200 per day of delay in filing quarterly TDS return
• Cap: Equal to the total TDS amount deducted for that quarter (whichever is lower)
• Example: ₹5 lakh TDS quarter filed 30 days late = ₹6,000 late fee (below cap)
• Example: ₹500 TDS quarter filed 30 days late = ₹500 (capped at TDS amount)
• Deductible as business expense under Section 37
• Cannot be waived — mandatory statutory levy

2. Section 201(1A) Interest (deduction/deposit delay):

• Section 201(1A)(a): Failure to deduct TDS on time = 1% per month or part of month from due date of deduction until actual deduction
• Section 201(1A)(b): Failure to deposit deducted TDS on time = 1.5% per month or part of month from due date of deposit until actual deposit
• Interest is calendar-month based — even 1-day delay into a new month counts as full month
• Example: ₹10L TDS deducted 15 April, deposited 12 May (5 days late) = 1.5% × 1 month × ₹10L = ₹15,000 interest
• Deductible as business expense under Section 37

3. Section 40(a)(ia) Expense Disallowance:

• Non-deduction: 30% of the expense disallowed for that FY (impacts income tax)
• Delayed deposit (after ITR filing due date): 30% disallowed for that FY, but allowed in FY of eventual deposit (deferred, not permanent)
• Example: ₹10L contractor payment where TDS was missed = ₹3L added to taxable income = ~₹90K extra tax
• This is the biggest financial impact — often exceeds the missed TDS itself

4. Section 271C Penalty (severe non-compliance):

• Penalty equal to the TDS amount not deducted or not paid
• Levied by Joint Commissioner after opportunity of being heard
• Applies for wilful non-compliance

5. Section 276B Prosecution (extreme cases):

• Imprisonment 3 months to 7 years + fine
• Applies to non-payment of TDS after deduction (using deductee funds)
• Compounding possible with Compounding Fees

Total cost example — ₹10L contractor payment where TDS missed for 6 months:

• Section 234E late fee (assuming Q1 return late by 90 days): ~₹18,000
• Section 201(1A) interest (6 months): ~₹90,000
• Section 40(a)(ia) disallowance (30% of ₹10L): ~₹90,000 extra tax
• Section 271C penalty: potentially ₹1,00,000 (equal to TDS)
• Total: ~₹2,98,000 for a ₹1L TDS missed = 3x the TDS amount

How our retainer prevents all these:

• Monthly TDS computed by 3rd, deposited by 6th (1-day buffer before 7th)
• Quarterly returns filed 5 days before due date
• PAN validation via TRACES bulk API before filing
• Section-wise mapping ensures nothing missed

TAN (Tax Deduction Account Number) is a 10-character alphanumeric number issued under Section 203A of the Income Tax Act. It's mandatory for any entity making payments that attract TDS.

When TAN is mandatory:

• Company or LLP making salary/contractor/professional/rent payments above threshold
• Partnership firm paying partners under Section 194T (from 1 Apr 2025) — even single-partner LLPs
• Individual/HUF in tax audit making payments above TDS threshold (Sec 194C, 194J, 194H, 194I etc.)
• Any deductor making TCS collections under Section 206C
• Applies from the first quarter where TDS liability arises

When TAN is NOT required (single-transaction forms):

• Property purchase > ₹50L (Section 194-IA · Form 26QB uses buyer's PAN)
• Rent > ₹50K/month by individual (Section 194-IB · Form 26QC uses tenant's PAN)
• Contractor/professional payments > ₹50L by individual not in audit (Section 194M · Form 26QD uses payer's PAN)
• VDA transactions (Section 194S · Form 26QE uses payer's PAN)

How to obtain TAN:

1. Application via Form 49B online at tin-nsdl.com or offline
2. Fee: ₹65 for online (Aadhaar-authenticated)
3. Documents: PAN of entity + proof of address + identity proof of authorised signatory
4. Processing: 15-20 working days
5. TAN delivered by email + physical letter to registered address

TAN structure:

• Format: 4 letters (city code) + 5 digits + 1 letter
• Example: DELM12345F (DELM = Delhi, 12345 = unique, F = check digit)
• Cannot be transferred; entity-specific
• Cannot be surrendered without formal application

Multiple TANs for same entity:

• Different branches in different cities may have separate TANs
• Different divisions of same company may have separate TANs
• Each TAN files separate quarterly returns
• Central consolidation via TRACES portal

Penalty for not obtaining TAN:

• ₹10,000 under Section 272BB
• Additional risk: TDS deducted without TAN → deposit challan cannot be filed → cascading defaults

Our onboarding:

• Verify existing TAN status via TRACES
• Apply for fresh TAN via Form 49B if needed (₹500 professional fee + govt fee)
• 15-20 day turnaround from application to certificate
• Included in first month of retainer if TAN application coincides

Complete due date calendar:

Monthly TDS Deposit (all sections):

• TDS deducted in April → deposit by 7 May
• TDS deducted in May → deposit by 7 June
• TDS deducted in June → deposit by 7 July
• ...and so on for months 1-11 of FY
• TDS deducted in March (last month) → deposit by 30 April (extra 23 days)

Quarterly TDS Return (Form 24Q, 26Q, 27Q, 27EQ):

• Q1 (April-June deductions) → file by 31 July
• Q2 (July-September deductions) → file by 31 October
• Q3 (October-December deductions) → file by 31 January (following calendar year)
• Q4 (January-March deductions) → file by 31 May (following FY)

Single-Transaction Forms:

• Form 26QB (property Sec 194-IA): within 30 days from month-end of deduction
• Form 26QC (rent Sec 194-IB): within 30 days from month-end of last month of tenancy or March (whichever earlier)
• Form 26QD (contractor Sec 194M): within 30 days from month-end of deduction
• Form 26QE (VDA Sec 194S): within 30 days from month-end of deduction

TDS Certificate Issuance:

• Form 16 (salary): by 15 June following FY (e.g., FY 2025-26 → 15 June 2026)
• Form 16A (non-salary): within 15 days of quarterly return due date
  • Q1 26Q Form 16A: by 15 August
  • Q2 26Q Form 16A: by 15 November
  • Q3 26Q Form 16A: by 15 February
  • Q4 26Q Form 16A: by 15 June
• Form 16B (property seller): within 15 days of Form 26QB filing
• Form 27D (TCS): within 15 days of Form 27EQ filing

Special Compliance Dates:

• Section 197 lower deduction certificate: apply anytime, valid till 31 March of FY
• Correction statements via TRACES: file within 15 days of CPC-TDS default notice
• Form 15CA/15CB: before remittance to non-resident

How our retainer schedules everything:

• Monthly TDS computed by 3rd, challan prepared by 4th, deposited by 6th (1-day buffer)
• Quarterly returns filed 5-7 days before due date (Q1 by 25 July, Q2 by 25 October, Q3 by 25 January, Q4 by 25 May)
• Form 16 issued by 10 June each year (5 days before deadline)
• Form 16A issued within 10 days of quarterly return

Consequences escalate progressively:

1-30 days late (single quarterly return miss):

• Section 234E late fee: ₹200/day (capped at TDS amount)
• Deductees' Form 16A delayed → their ITR filing affected
• CPC-TDS intimation may be issued
• Fixable with catch-up filing + late fee payment

30-90 days late (multiple deductees affected):

• Full Section 234E late fee (may hit cap of TDS amount)
• Section 201(1A) interest continues if TDS not deposited
• Section 40(a)(ia) disallowance on business income (30% of expense)
• Deductees may see missing credit in Form 26AS/AIS → refund disputes

Persistent non-compliance (multi-quarter defaults):

• CPC-TDS raises consolidated demand notice
• Section 271C penalty (equal to TDS amount) may be levied
• PAN reversal — CPC-TDS may reverse credits from Form 26AS/AIS for deductees, creating recovery from you
• Section 40(a)(ia) permanent disallowance if TDS not deducted at all

Extreme cases (Section 276B prosecution):

• Non-payment of deducted TDS to Government (using deductee funds)
• Imprisonment 3 months to 7 years + fine
• Compounding possible with Compounding Fees under CBDT guidelines
• Applies to directors/partners personally, not just entity

Recovery path if you've fallen behind:

1. Immediate assessment: We compute total pending returns + interest + late fee + potential disallowance
2. Prioritized filing: File oldest pending return first, prevents cascading interest
3. Interest deposit: Section 201(1A) interest deposited with next TDS challan
4. Correction statements: For wrong PANs/amounts via TRACES
5. CPC-TDS response: Reply to any pending default notices
6. Ongoing retainer: Prevent recurrence with our schedule

Real client scenario: Manufacturing firm missed 3 consecutive Form 24Q filings (Q2/Q3/Q4 of FY 2024-25). Section 234E fees ₹1.8L, Section 201(1A) interest ₹4.2L, Section 40(a)(ia) disallowance on ₹2.4Cr contractor expenses (₹72L added to taxable income → ₹22L extra tax). Total impact: ₹28L. We handled: filed all 3 returns in 10 days, deposited interest, filed correction statements, responded to CPC notices. Now on our retainer, 12 quarters clean.

Form 16 (Salary TDS Certificate):

• Issued by employer to employee under Section 203
• Two parts:
  • Part A: Deduction and deposit summary — downloaded from TRACES portal after Q4 Form 24Q processing
  • Part B: Detailed salary breakdown — generated from Annexure II of Q4 24Q or software-generated
• Due date: 15 June following FY (e.g., FY 2025-26 Form 16 → by 15 June 2026)
• Content: Salary paid, exemptions (Section 10), Chapter VI-A deductions (80C/80D etc.), TDS deducted, TAN of employer, PAN of employee
• Format: PDF, digitally signed by authorised signatory

Form 16A (Non-Salary TDS Certificate):

• Issued by deductor to deductee for non-salary payments
• Downloaded from TRACES after quarterly Form 26Q/27Q processing
• Due date: within 15 days of quarterly return filing due date
  • Q1 (26Q filed by 31 July) → 16A by 15 August
  • Q2 (26Q filed by 31 October) → 16A by 15 November
  • Q3 (26Q filed by 31 January) → 16A by 15 February
  • Q4 (26Q filed by 31 May) → 16A by 15 June
• Content: Payment details, section of TDS, rate, amount deducted, challan CIN, deductor TAN, deductee PAN

Special certificates:

• Form 16B — Property seller certificate under Section 194-IA, from Form 26QB, within 15 days
• Form 16C — Landlord certificate under Section 194-IB, from Form 26QC
• Form 16D — Contractor certificate under Section 194M, from Form 26QD
• Form 16E — VDA seller certificate under Section 194S, from Form 26QE
• Form 27D — TCS certificate from Form 27EQ, within 15 days

Common issues:

• Wrong PAN in return → certificate cannot be downloaded from TRACES → requires correction statement
• Challan mismatch → Part A shows partial deposit → deductee's credit affected
• Delayed issuance → Section 272A(2)(g) penalty ₹100/day per certificate

Our process:

• PAN validation for every deductee before quarterly filing
• Challan-CIN reconciliation post-filing (within 5 days)
• Bulk Form 16/16A download from TRACES within 10 days of quarterly return
• Digital signing + email distribution to deductees
• Form 16 (salary) issued by 10 June each year (5-day buffer)
• Employee/vendor query support for TDS credit issues

CPC-TDS (Central Processing Cell - TDS) is the automated processing system operated by the Income Tax Department at Bengaluru. It processes every TDS return filed, matches challans, validates PANs, computes defaults, and issues intimation notices under Section 200A.

Common CPC-TDS defaults:

1. Short Deduction: TDS deducted at rate lower than applicable section rate (e.g., 1% instead of 2%)
2. Short Deposit: TDS deducted but deposited amount less than deducted
3. Late Deposit: TDS deposited after due date (7th of following month)
4. Late Filing: Quarterly return filed after due date (triggers Section 234E)
5. PAN Errors: Invalid, inactive, or wrong PAN in the return
6. Challan Mismatch: Challan CIN quoted but doesn't match bank records
7. Interest Errors: Interest under Section 201(1A) not paid or under-paid

How CPC-TDS notifies:

• Intimation issued under Section 200A within 30-60 days of quarterly return processing
• Available on TRACES portal for the deductor
• Email notification to registered email of deductor
• Consolidated statement shows section-wise defaults + amount + due date for response

Types of intimation:

• Section 200A intimation: Computation of interest/late fee/default after quarterly return processing
• Section 154 rectification order: If defaults are contested
• Section 156 demand notice: If defaults are confirmed and payment sought

Correction statement process:

1. Login to TRACES as deductor
2. Download conso file for the quarter
3. Identify defaults — short deduction, PAN error, challan mismatch, etc.
4. Prepare correction statement using FVU utility with correct data
5. Upload correction statement via TRACES
6. CPC-TDS reprocesses and reflects updated status in 30-45 days
7. Pay any additional demand if defaults confirmed

Timing to respond:

• Section 200A intimation: file correction statement within 15 days for zero-interest resolution
• Section 154 rectification: within 4 years from end of FY of order
• Section 156 demand: pay within 30 days or file appeal

Our default resolution service:

• Automated CPC-TDS notice monitoring via TRACES login
• Default categorisation + fix identification within 24 hours of notice
• Correction statement prepared + uploaded within 10 days
• Response letters for contested defaults
• Reconciliation report to your accounting team
• Included in Basic Plan: up to 3 corrections/year; Growth Plan: unlimited
• Beyond retainer scope: ₹1,500 per correction statement