Question 1

What is TDS and when is it applicable?

Accepted Answer

TDS (Tax Deducted at Source) is applicable on various payments like salary, professional fees, rent, interest, commission, etc. Rates vary from 1% to 30% depending on the nature of payment and recipient. It's mandatory when payments exceed specified threshold limits.

Question 2

What are the due dates for TDS return filing?

Accepted Answer

TDS returns are due by 31st of the month following the quarter end. Q1 (Apr-Jun) due by 31st July, Q2 (Jul-Sep) due by 31st October, Q3 (Oct-Dec) due by 31st January, Q4 (Jan-Mar) due by 31st May.

Question 3

What is the penalty for late TDS return filing?

Accepted Answer

Late filing penalty is ₹200 per day from the due date until filing. Additionally, interest at 1.5% per month is charged on late deposit of TDS. We ensure timely filing to avoid all penalties.

Question 4

When should Form 16 be issued to employees?

Accepted Answer

Form 16 must be issued to employees by 15th June of the following financial year. It contains details of salary paid, TDS deducted, and deposited during the financial year. We generate and deliver Form 16 well before the deadline.

Question 5

What is a lower TDS certificate and when is it needed?

Accepted Answer

Lower TDS certificate allows deduction of TDS at a lower rate than prescribed if the deductee's tax liability is lower. We help apply for lower TDS certificates to optimize cash flow for businesses and individuals.

Question 6

What is TCS and how is it different from TDS?

Accepted Answer

TCS (Tax Collected at Source) is collected by the seller from the buyer at the time of sale. It's applicable on e-commerce transactions, sale of goods above specified limits, and certain other transactions. TDS is deducted by the payer, while TCS is collected by the seller.

TDS/TCS Compliance Services in Bangalore

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