TDS Payment & Return – Comprehensive Guide

Understanding TDS Compliance

ClientsMaster ensures seamless compliance with all TDS provisions, from deduction to deposit and return filing, avoiding penalties and legal complications.

The Income Tax Act, 1961 mandates the deduction of Tax Deducted at Source (TDS) on payments for various services to both residents and non-residents. Any person making such payments must:

• Deduct TDS at the prescribed rates.

• Deposit the deducted tax with the government before the due date.

• File an E-TDS return to allocate the tax to respective deductees.

Failure to comply may result in

• Disallowance of expenses under Income Tax Act

• Interest and penalty charges for late payment

• Deductees being unable to claim TDS credit due to non-reflection in their PAN account.

1. TDS Payment Due Dates

(A) Due Dates for Depositing TDS

(B) Interest on Late Payment of TDS

• Non-deduction of TDS: 1% per month from the due date till actual deduction.

• Non-deposit of deducted TDS: 1.5% per month from the date of deduction till deposit.

• ClientsMaster ensures timely payment of TDS to avoid interest and penalties.

2. TDS Return Filing Due Dates

TDS Return Forms as per Deductee Type

(A) Late Filing Fees for TDS Returns (Section 234E)

• Penalty: ₹200 per day of delay, capped at the TDS amount deducted.

• Example: If TDS amount is ₹5,000 and the return is delayed by 50 days, the penalty will be ₹5,000 (not ₹10,000).

(B) Penalty for Non-Filing or Incorrect Filing (Section 271H)

• Minimum: ₹10,000

• Maximum: ₹1,00,000

• Applicable if the return is not filed within one year or incorrect information is provided.

ClientsMaster ensures accurate and timely TDS return filing, preventing penalties and ensuring smooth compliance.

3. Key Compliance Services by ClientsMaster

At ClientsMaster, we offer expert TDS (Tax Deducted at Source) compliance services to ensure businesses and individuals comply with tax regulations. Our team of Chartered Accountants (CAs) provides end-to-end solutions for TDS deductions, payments, and filings.

Our TDS Compliance Services

TDS Deduction & Compliance Advisory

✅ Identifying transactions liable for TDS deduction

✅ Ensuring correct TDS rates as per the Income Tax Act

✅ Advising on exemptions and lower deduction certificates (Form 13)

TDS Calculation & Deduction

✅ Accurate computation of TDS on salaries, contracts, rent, professional fees, commission, etc.

✅ Monthly TDS deduction and timely deposit with the government

TDS Payment & Filing of Returns

✅ Depositing TDS online via Challan ITNS 281 before the due date

✅ Preparation and filing of quarterly TDS returns (Forms 24Q, 26Q, 27Q, and 27EQ)

✅ Generating TDS certificates (Form 16, 16A) for employees and vendors

TDS Notices & Compliance Assistance

✅ Handling TDS-related notices, defaults, and demand notices from the Income Tax Department

✅ Rectification of errors in TDS returns (revised filings)

✅ Assistance in responding to scrutiny and assessments

Lower / Nil Deduction Certificate & Refunds

✅ Applying for lower/NIL TDS deduction certificates under Section 197

✅ TDS refund claims and reconciliation with Form 26AS

TDS Reconciliation & Compliance Monitoring

✅ Matching TDS deducted and deposited with Form 26AS

✅ Checking compliance status and ensuring no discrepancies

With ClientsMaster, businesses can focus on their core operations while we efficiently manage their TDS compliance. For expert assistance, contact ClientsMaster today!