TDS stands for Tax Deducted at Source. It’s a method of collecting tax where a certain percentage (rates can range from 1% to 30%) is deducted by the payer (deductor) when making specific payments to the payee (deductee). It’s important because it helps the government collect tax regularly and creates a trail of taxable transactions.

Any person or entity that deducts TDS from payments made to others is required to file TDS returns. This includes employers, companies, firms, individuals, and other entities making specific payments above certain thresholds.

TDS returns are generally due quarterly:

For Q1 (April to June): July 31st

For Q2 (July to September): October 31st

For Q3 (October to December): January 31st

For Q4 (January to March): May 31st. However, it’s always best to check the latest dates announced by the Income Tax Department.

Late filing of TDS returns can result in penalties under section 234E of the Income Tax Act, which is ₹200 per day of delay, subject to the amount of TDS. Additionally, there can be penal interest and prosecution in severe cases of non-compliance.

Yes, TDS returns must be filed online through the TRACES portal. Finocircle assists in the entire online filing process, including generating and uploading the FVU file.

A correction statement is filed to rectify any errors or omissions in the original TDS return. It can be filed to add, modify, or delete any details submitted in the original return.

Yes, if excess TDS has been deducted, we can assist in the process of claiming a refund by ensuring accurate reporting in the TDS returns and guiding you through the refund claim process.

Yes, we can handle TDS return filing for multiple TANs, making us ideal for businesses with various branches or group companies.

If there’s a mismatch, we first identify the cause (e.g., calculation errors, timing differences). We then assist in rectifying the issue, which may involve filing a correction statement or making additional payments if required.

Yes, we provide comprehensive support in responding to TDS-related notices, including drafting responses, compiling necessary documents, and representing clients before tax authorities if required.

A lower deduction certificate is issued by the Income Tax Department, allowing TDS to be deducted at a lower rate than prescribed. If such certificates are used, they must be reported in the TDS return, which Finocircle can handle for you.

Yes, we have expertise in handling TDS for payments to non-residents, including understanding the implications of Double Taxation Avoidance Agreements (DTAAs) and filing the appropriate returns (Form 27Q).

We typically complete the process within 3-5 working days of receiving all required documents, ensuring timely filing well before the due dates.