TDS
What TDS means, where you will meet it and what it means for your business.
DefinitionTax Deducted at Source (TDS) is income tax that a payer withholds from salaries, rent, professional fees, contractor payments and interest at prescribed rates and deposits with the government on the payee's behalf.
TDS pushes tax collection to the point of payment. When your company pays a consultant ₹1 lakh, it deducts 10% under Section 194J, pays ₹90,000, and deposits ₹10,000 against the consultant's PAN by the 7th of the next month (30 April for March). Common rates are 10% on professional fees and rent of buildings, 1% or 2% on contractors, 2% on rent of machinery, and slab rates on salary under Section 192, with higher rates if the payee has no PAN. Quarterly returns in 24Q for salary and 26Q for others are due on 31 July, 31 October, 31 January and 31 May, and certificates follow. You meet it the first month you pay anyone above the threshold. What it means for you: late deposit costs 1.5% interest a month, late returns ₹200 a day under 234E, and the expense can be disallowed until the tax is paid.
Where you will meet this term
- TDS ReturnsCompanies, LLPs, firms and audited businesses that pay salaries, rent, contractors or professionals.from ₹1,499/quarter
- Accounting & MISFounders who want the books closed every month and a one-page MIS they can actually read, with GST and TDS data ready on time.from ₹4,999/month
- Income Tax Planning & FilingSalaried people, investors, NRIs, freelancers and business owners who want the return right, not just filed.from ₹999