TDS Compliance for Businesses: Rates, Due Dates & How to Avoid Notices

What is TDS?

Tax Deducted at Source (TDS) is a mechanism where the payer deducts tax at the time of making certain payments and deposits it with the government on behalf of the recipient.

Common TDS Sections

• Section 192: Salary payments
• Section 194C: Payments to contractors (1-2%)
• Section 194J: Professional/technical fees (10%)
• Section 194I: Rent payments (2-10%)
• Section 194H: Commission and brokerage (5%)

TDS Payment Due Dates

TDS deducted must be deposited by the 7th of the following month. For March, the deadline is April 30. TDS returns (24Q, 26Q) must be filed quarterly.

Consequences of Non-Compliance

• Interest at 1-1.5% per month on late payment
• Penalty up to the amount of TDS not deducted
• Prosecution in severe cases