TDS Compliance and Return Filing
Monthly deduction and deposit, quarterly statements and certificates handled on one calendar — under the renumbered sections and forms that took effect on 1 April 2026.
Tax deducted at source makes you a collecting agent for the government. If you pay salaries, rent, contractor bills, professional fees, commission or interest above the prescribed limits, you must deduct tax before paying, deposit it by the due date, report it in a quarterly statement and issue a certificate to the person you deducted from. Four separate obligations, each with its own deadline, and the penalty structure treats them separately too.
Everything about how this is cited changed on 1 April 2026. The Income Tax Act, 2025 collapsed the old maze of sections into two: Section 392 for salary and Section 393 for every other payment, the latter using payment codes in a single table instead of a separate section per payment type. Compliance — your TAN, the quarterly statements and the certificates — sits under Section 397. The forms were renumbered with it: the salary statement is now Form 138, resident non-salary is Form 140, and payments to non-residents are Form 144.
The cost of getting it wrong falls on you, not on the person you paid. Deposit late and interest runs at 1.5% per month from the date of deduction to the date of payment. File the statement late and the fee is ₹200 per day of delay, capped at the tax deducted under Section 427. Worse, a deductee whose credit does not appear in their Form 26AS cannot claim it — so a filing error of yours becomes their problem, and then your dispute.
Enquire about TDS Compliance
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If any of these describe where you are right now, this is the service you are looking for.
You employ staff on salaries above the taxable limit and must deduct tax each month.
You pay contractors, professionals, commission agents or brokers on business account.
You pay rent for premises or equipment above the prescribed threshold.
You have received a default notice or a short-deduction demand from the TDS reconciliation system.
You need a TAN, or you hold one and have never filed against it.
Your deductees are telling you the credit is not showing in their Form 26AS.
Everything handled, end to end
The full scope of the engagement, so there is nothing to discover halfway through.
TAN registration and portal setup
A Tax Deduction Account Number is required before you can deposit anything under Section 397. We obtain it and set up your access to the reporting portal.
Applicability and rate determination
Which of your payments attract deduction, at what rate, and under which payment code of Section 393 — decided per payment type rather than applied as one blanket rate.
Monthly computation and deposit
Deduction computed on the month's payments and deposited by 7th of the following month (30 April for March), with the challan preserved against the statement.
Salary TDS computation for employees
Each employee's liability projected across the year under Section 392, with their declarations and regime choice taken into account so deduction is even rather than lumped into March.
Quarterly statement filing
Form 138, Form 140 and Form 144 prepared, validated and filed by 31 July, 31 October, 31 January and 31 May.
Certificate generation and issue
Form 130 for salary and Form 131 for other payments, downloaded and issued within 15 days from the statement due date.
Correction statements
Wrong PAN, wrong challan, wrong section or a missing deductee — corrected by revised statement so the credit reaches the right person's account.
Default and demand resolution
Short deduction, short payment, late payment and late filing demands reconciled against your challans and answered, rather than left accumulating interest.
What you'll need to hand over
Collected once, at the start. We tell you which of these apply to your case before you gather anything.
To register or take over compliance
- 01PAN of the business and of the authorised signatory
- 02TAN, if you already hold one, along with portal credentials
- 03Certificate of incorporation, partnership deed or proprietorship proof
- 04Digital Signature Certificate of the authorised signatory, where the entity type requires one
- 05Any past statements filed and default notices received
Every month
- 01Payment register or ledger for the month, by payee and payment type
- 02PAN of every payee — a missing or invalid PAN triggers deduction at a higher rate
- 03Invoices for contractor, professional and commission payments
- 04Rent agreements for premises and equipment
- 05Challans for tax already deposited, if any deposit was made without us
For salary deduction
- 01Salary structure for each employee, with allowances broken out
- 02Each employee's regime choice for the year, in writing
- 03Investment and rent declarations, and proof at year end where the old regime is chosen
- 04Details of previous employment during the year, for employees who joined mid-year
For non-resident payments
- 01Tax residency certificate of the payee
- 02Form 10F and the no permanent establishment declaration, where relied on
- 03The agreement or invoice describing the nature of the payment
- 04Details of any lower or nil deduction certificate obtained
Send the payee's PAN before the payment goes out, not after. Deducting at the higher no-PAN rate is correctable only with difficulty, and recovering the excess from a vendor who has already been paid is a commercial conversation rather than a compliance one.
5 steps, start to finish
Where the work actually goes, and what we need from you at each stage.
Map your payments
We go through your payment types once and record which attract deduction, at what rate, and under which code of Section 393. That map then runs every month without being re-decided.
One-time setup
Monthly deduction and deposit
You send the month's payment data by the agreed cut-off; we compute, deduct and deposit by 7th of the following month (30 April for March), and file the challan against your records.
Confirm with us
Quarterly statement
Deductee-wise data validated against the challans, mismatches resolved before filing rather than after, and the statement filed within the quarter's window.
Confirm with us
Certificates to deductees
Certificates downloaded and issued within 15 days from the statement due date, so your employees and vendors can claim the credit in their own returns.
15 days from the statement due date
Defaults and corrections
Any default raised after processing is reconciled against the challan data and answered by correction statement or reply, with the demand closed rather than parked.
As raised
What to expect, and what it costs
Timelines are indicative and depend on departmental processing and how quickly documents come back to us. Message us on WhatsApp for a written quote.
Enquire on WhatsApp- Deposit of tax deducted
- 7th of the following month (30 April for March)
- Quarterly statement filing (Q1 to Q4)
- 31 July, 31 October, 31 January and 31 May
- Issue of certificates to deductees
- 15 days from the statement due date
- Interest on late deposit
- 1.5% per month from the date of deduction to the date of payment
- Late fee on a statement filed after its due date
- ₹200 per day of delay, capped at the tax deducted
Professional fees
On request
Common questions
The questions we are actually asked about TDS Compliance. If yours is not here, ask us directly.
The forms were renumbered when the Income Tax Act 2025 took effect on 1 April 2026. Salary statements moved from 24Q to Form 138, resident non-salary from 26Q to Form 140, non-resident payments from 27Q to Form 144, and the TCS statement from 27EQ to Form 143. The due dates did not move — 31 July, 31 October, 31 January and 31 May.
Two, instead of the sixty-odd there used to be. Section 392 covers salary. Section 393 covers everything else — contractors, professionals, rent, commission, e-commerce and the rest — through one table of payment codes. What you are deducting for now shows up as a code rather than as its own section number.
Late deposit runs interest at 1.5% per month from the date of deduction to the date of payment, calculated from the date you deducted. A statement filed late attracts ₹200 per day of delay, capped at the tax deducted under Section 427 — the cap means the fee cannot exceed the tax itself, but a small deduction filed months late can reach that cap easily.
Almost always the deductee data in the quarterly statement: a wrong PAN, the wrong quarter, or a challan that does not match. The tax has usually been paid — it just landed unattributed. A correction statement fixes it, and the credit appears against the right PAN after processing.
Yes, if any of those payments attract deduction. TAN is required to deposit deducted tax under Section 397, and it is separate from your PAN. Holding a TAN and never filing against it also generates its own notices, so it should be either used properly or surrendered.
Then you deduct at the certificate's rate for the payments and period it covers, and report it in the statement so the reduced rate reconciles. Keep the certificate on file — it is the only defence against a short-deduction demand raised later on those payments.
Commercially, that is a negotiation. Legally, the liability sits with you as the deductor: you owe the tax with interest whether or not the vendor reimburses you. It is why the payment map matters — deciding deduction before the payment goes out is much cheaper than deciding after.
Yes. Deduction under Section 392 is computed on the employee's projected annual liability, and that depends on whether they are on the new or old regime. Collect the choice in writing at the start of the year, or the deduction is either short all year or lumped into March.
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