TDS | E way bill Compliance | TDS Compliances


Tax Deducted at Source (TDS) is a kind of tax deduction subtracted at the time of specific payments made to the seller (deductee) by purchaser (deductor), such as, rent, commission, professional fees, interest, etc. when the amount is more than the minimum threshold limit exempted from deduction. The deductor then has to deposit the deducted amount to the Government which will be considered as a kind of advance tax paid on behalf of the deductee who received his/her deducted income.

The method helps the deductee to reduce his/her tax liability over the already tax deducted income and Government can keep a regulation of revenue over these incomes keeping a check on Tax Evasion. So, this tax process is the reverse of the general process of tax payment done by a taxpayer, where the payer is liable to deposit the tax instead of the seller. TDS is deducted on the basis of slab rate as specified by CBDT. TDS filing is usually done in quarterly basis per AY through online and offline options as available for the buyer. Buyer should issue a TDS certificate to the seller as a token of his/her TDS deduction.

Types of Available TDS Forms
  • Based on the type of payment on which the deductor has made the TDS deduction, there is TDS filing form that he/she has to select for furnishing the transaction details.
    The available forms are:
    • Form 24Q: TDS filing from Salaries
    • Form 26Q: TDS filing from Payments other than Salaries
    • Form 26QB: TDS on Sale of Property
    • Form 26QC: TDS on Sale of Property
    • Form 27Q: TDS filing from additional income, such as, interest, dividend or any other amount payable to NRI
    • Form 27EQ: TDS filing for TCS (Tax Collected at Source)

Annual TDS Compliances Benefits

TDS Annual Compliances are essential part for every Deductor to fulfil within time to ensure the following benefits:

  • Ensuring loyal tax payment and initiative in prevention of Tax Evasion
  • Timeliness and Regularity in Tax payment liability
  • Gives Government a Steady Source of Income
  • Relieves taxpayer from more tax burden
  • TDS extends of the scope of Tax Collection options from almost every source of income when it exceeds the threshold value.

Documentation for Annual TDS Compliances

It is mandatory for the deductor to submit TDS Return on time otherwise be charged with penalties. Essential documents required during TDS Return Submission are:

  • PAN of deductor
  • PAN of deductee
  • TAN Details of deductor (where applicable)
  • Amount of tax paid to the Government
  • TDS Challan information

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