Tax Deducted at Source (TDS) is a mechanism where tax is collected at the point of payment. Employers, businesses paying contractors, and professionals must deduct TDS and deposit it with the government on time.
Key TDS Obligations for Employers
- Deduct TDS on salaries under Section 192
- Obtain TAN and deposit TDS by the 7th of the following month
- File quarterly TDS returns (Form 24Q for salaries)
- Issue Form 16 to employees annually
Penalties for Non-Compliance
Late deposit attracts interest at 1.5% per month. Late filing of TDS returns can result in penalties of ₹200 per day. Non-deduction or short deduction may lead to disallowance of expenses and additional interest. Proactive TDS management avoids costly notices.
CAPro Consult handles TDS calculation, quarterly filing, and notice resolution for employers and businesses across industries.
