Quarterly statements, corrections and default resolution — without the late fee.
TDS is where otherwise well-run businesses quietly accumulate liability. The deduction is made, the payment is missed by a few days, the return is filed late, and a demand appears on the TRACES portal months later with interest and fee attached. We run the quarterly cycle so that does not happen.
Which statement applies
Form
Covers
Form 24Q
TDS on salary paid to employees
Form 26Q
TDS on payments other than salary to residents — contractors, professional fees, rent, commission, interest
Form 27Q
TDS on payments to non-residents and foreign companies
Form 27EQ
Tax collected at source
The quarterly cycle
Tax deposited by the 7th of the month following deduction, with a separate deadline for deductions made in March
Quarterly statements due 31 July, 31 October, 31 January and 31 May for the four quarters respectively
Form 16 issued to employees after the annual statement is processed
Form 16A issued to other deductees within the prescribed period after each quarterly filing
Late filing carries a daily fee that runs until the statement is filed, capped at the TDS amount involved, and a separate penalty can be levied for prolonged failure. Interest applies independently on late deduction and late payment. None of it is deductible as a business expense.
What we handle
TAN registration and TRACES portal registration if you are deducting for the first time.
Rate and section mapping. We confirm the correct section and rate for each payment type — and check PAN validity, since an invalid or unlinked PAN triggers a much higher deduction rate.
Challan preparation and payment within the deposit deadline.
Statement preparation and filing, with challan-to-deduction mapping verified before upload.
Certificate issue. Form 16 and 16A downloaded from TRACES and issued to your employees and vendors.
Default resolution. Short deduction, short payment and PAN error defaults reviewed and cleared through correction statements.
Lower deduction and non-deduction
Where a payee holds a certificate for lower or nil deduction, or has filed a declaration for non-deduction on interest income, the certificate has to be validated and reflected correctly in the statement. Getting this wrong creates a short-deduction default in your name, not the payee's.
If defaults already exist
We pull your justification report from TRACES, identify what is driving each default — usually a challan mismatch or an invalid PAN rather than an actual shortfall — and file correction statements to clear it. In many cases the demand reduces substantially once the challans are correctly mapped.
Frequently asked questions
Yes. Any person required to deduct tax at source must obtain a Tax Deduction and Collection Account Number. It is separate from PAN and must be quoted on all challans, statements and certificates.
Tax must be deducted at a significantly higher rate. If you deducted at the normal rate, a short-deduction default is raised against you and you become liable for the difference — not the payee. We validate PANs before each filing for exactly this reason.
Yes. Correction statements can be filed to fix challan details, PAN errors, deduction amounts and section codes. There is no fee for filing a correction, and clearing defaults early avoids interest accumulating on a demand.
Individuals and HUFs paying rent above the prescribed monthly threshold are required to deduct tax, though the compliance route is simplified and does not require a TAN. The same applies to certain property purchases. We can confirm whether your situation triggers the obligation.