Fact-check notes
Last fact-checked: 2026-05-30
Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. Tax Year 2026-27 and new-form references should be verified against official utilities before filing.
Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.
What this covers
A company-focused FAQ for when to deduct TDS, how to pay/report it and what happens if deductions are missed.
- Mirrors and extends the WorkIndex pattern from faq-tds-india.
- Focuses on India-specific facts, documents, deadlines and quote preparation.
- Designed to help users write a clearer requirement before hiring an expert.
Who this is for
- User comparing experts on WorkIndex.
- Business owner preparing records before filing or advisory.
- CA, GST consultant, accountant or developer scoping the work.
- Urgent case where deadline and documents must be clear.
Documents and data to verify
- AIS/Form 26AS or GST portal data, if relevant.
- Invoices, contracts, bank statements and ledgers.
- Working papers, computation sheets and past filings.
- Notices, deadlines, acknowledgements and challans, if any.
Common mistakes to avoid
- Using future-dated rates or form numbers without verifying the active notification.
- Filing from summary data without reconciling portal records.
- Missing TDS/TCS/GST credit mismatches.
- Not keeping proof for deductions, exemptions, ITC claims or disclosures.
How to proceed
- Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
- Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
- Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
- Download acknowledgements, challans, workings and evidence after filing or submission.
FAQs
Can WorkIndex help with this?
Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.
Is this page final legal advice?
No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.
What should I mention while posting?
Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.
Frequently Asked Questions
1. What is Tax Deducted at Source (TDS) as it relates to TDS FAQ for Companies?
TDS is a system where the payer deducts tax before making payments for TDS FAQ for Companies and deposits it with the government. The receiver receives the net amount, and the TDS amount is reflected in their Form 26AS/AIS, which can be claimed against final tax liability.
2. What is the TDS rate and threshold limit applicable for TDS FAQ for Companies?
The TDS rate and threshold depend on the specific section under which TDS FAQ for Companies falls (e.g. 10% under Section 194J for professional fees above ₹30,000; 1% or 2% under Section 194C for contract payments above ₹30,000/₹1,00,000; 10% under Section 194-I for rent above ₹2.4 lakh).
3. What is Tax Collected at Source (TCS) and how does it relate to TDS FAQ for Companies?
TCS is collected by the seller from the buyer at the time of sale of specific items or services linked to TDS FAQ for Companies (e.g. LRS transfers, overseas tour packages, car purchases exceeding ₹10 lakh). The seller deposits the collected tax, which appears as a credit for the buyer.
4. What is the difference between Form 16, Form 16A, and Form 16B?
Form 16 is an annual certificate issued by employers showing salary paid and TDS deducted. Form 16A is a quarterly certificate for non-salary payments (like interest, professional fees, or rent). Form 16B is a certificate for TDS deducted on the purchase of immovable property.
5. What is Form 26AS, and how is it used?
Form 26AS is a consolidated annual tax statement that shows details of TDS deducted, TCS collected, advance tax/self-assessment tax paid, and tax refunds issued against your PAN. Taxpayers use it to verify tax credits before filing their ITR.
6. What are the due dates for filing quarterly TDS returns?
TDS returns must be filed quarterly: Q1 (April-June) by July 31; Q2 (July-Sept) by October 31; Q3 (Oct-Dec) by January 31; and Q4 (Jan-March) by May 31 of the financial year.
7. What is the penalty for late filing of TDS returns?
A late fee of ₹200 per day under Section 234E is charged for late filing of TDS returns, capped at the total TDS amount. Additionally, a penalty under Section 271H (ranging from ₹10,000 to ₹1,00,000) can be levied for non-filing.
8. What is the due date for depositing TDS with the government?
TDS must be deposited by the 7th of the following month in which the deduction was made. For the month of March, the TDS deposit due date is April 30.
9. What is the TDS rate on rent under Section 194-I?
Under Section 194-I, TDS on rent is deducted at 10% for renting land, building, or furniture, and 2% for renting plant, machinery, or equipment. It is applicable if total rent paid during the FY exceeds ₹2,40,000.
10. What is the TDS rate on professional and technical services under Section 194J?
Under Section 194J, TDS is deducted at 10% on professional fees, royalty, and non-compete fees. A lower rate of 2% applies to technical fees, call center operations, and royalty for sale/distribution of cinematographic films. It applies if payment exceeds ₹30,000 in a FY.
11. What is Section 194C TDS on contractors?
Section 194C requires TDS to be deducted at 1% for payments to individuals or HUFs, and 2% for payments to other entities (companies, firms, etc.). It applies if a single payment exceeds ₹30,000 or aggregate payments exceed ₹1,00,000 in a FY.
12. What is the TDS rate on purchase of immovable property under Section 194-IA?
The buyer of property must deduct 1% TDS under Section 194-IA if the purchase consideration or stamp duty value of the property is ₹50 lakh or more. TDS must be paid using Form 26QB within 30 days from the end of the month of purchase.
13. How is TDS deducted on payments to Non-Resident Indians (NRIs) under Section 195?
Under Section 195, TDS must be deducted on any taxable payment made to an NRI at the maximum marginal rate (e.g. 30% for short-term gains, plus applicable surcharge and cess) unless a lower tax certificate is obtained from the Income Tax officer.
14. What is the TCS rate on Liberalised Remittance Scheme (LRS) overseas transfers?
Under Section 206C(1G), TCS on LRS transfers is: 5% for education/medical purposes exceeding ₹7 lakh; 0.5% if funded by an education loan; 5% for overseas tour packages up to ₹7 lakh and 20% above ₹7 lakh; and 20% for all other remittances (investments, gifts) exceeding ₹7 lakh.
15. What happens if a payee does not furnish their PAN?
If the payee fails to provide their PAN, TDS/TCS is deducted at higher rates under Section 206AA / 206CC. The rate will be the higher of: the rate specified in the Act, the rate in force, or a flat 20% (5% for certain sections).