Do you want to simplify your business with our services that help you to be legally compliant via streamlined taxation, preventing penalties and improved accuracy? Welcome to Sterling Tax Partners, your trusted TDS service provider in Gurgaon
Sterling Tax Partners TDS Services
The TDS scheme deducts a portion of an individual’s income at the time of payment and remits it directly to the government. As a responsible TDS service provider in Gurgaon, we recognize that anyone who makes payments such as salary, interest, rent, commission, or professional fees is required to deduct TDS.
TDS is managed by India’s Income Tax Department and governed by the Income Tax Act of 1961. Tax is deducted at the source to ensure that all individuals pay their taxes on time and efficiently. It is a method used by the government to collect taxes in advance for the assessee’s income.
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What is TDS
What is tax deducted at Source, Tax deducted at source is tax deducted by a person while making the payment to the recipient. TDS makes sure tax flows to the government as and when transactions happen.
TDS is applicable on the specified nature of the transaction i.e. Salary, interest, rent, professional fees, contract fees, Commission, dividend, etc. TDS never exempts a person from filing their Income tax return. Every person has to file the return income tax return if the income of that person exceeds the threshold limit as specified in law.
Why Tax Deduction
- It avoids tax evasion, the liability to pay the TDS is always on the payer instead of the receiver.
- The government gets the tax throughout the year as and when transactions happen and need not wait for a whole year.
- Taxpayers pay the tax gradually instead of making an impact on cash flow at one time.
How can Sterling Tax Partners help you with TDS Services?
- Applying the Correct TDS Rates
Tax regulations are constantly changing, and goods and services often shift between tax brackets. We pay close attention to the numbers to ensure accuracy. - Timely Filing of E-TDS Returns
With numerous invoices and bills moving through an organization, businesses have plenty to manage. We take care of the dates and deadlines for you, ensuring timely filing. - Generating Form 16/16A
These certifications serve both employees and businesses by maintaining accurate records. They give extensive TDS/TCS information for several transactions involving the deductor and deductee. - Assistance with Filing Correction Returns
Errors and misjudgments may happen, but we ensure they don’t affect your records. Our experienced accountants help you maintain clean, accurate books, addressing any corrections efficiently.
Applicability of TDS on Services
- TDS on Salary
- TDS on premature withdrawal of Provident fund
- TDS on interest on securities
- TDS on Dividends
- TDS on Interest (other than securities)
- TDS on winning from lottery or crossword puzzles.
- TDS on winning from racehorses
- TDS on insurance commissions
- TDS on Payment in Respect of Life Insurance Policy
- TDS on Payments to Non-Resident Sportsmen or Sports Association
- TDS on rent
- TDS on payment on purchase of immovable property
- TDS on purchase of goods subject to specified conditions.
Time of deduction of TDS
TDS is deducted at the time of payment or credit whichever is earlier.
Certain payment exempted from deduction of TDS
TDS is not required to be deducted while making the payment to the Bank
The amount of payment is below the threshold
Statutory payment
Payment made to entities registered under section 10 of the Income Tax Act and not required to file the return of income u/s 139 of the Income Tax Act.
In the case of non-residents, income is deemed to accrue or arise outside India.
Consequence of non-deduction of TDS
Interest on non-deduction of TDS and non-payment of TDS
1% per month interest is applicable for non-deduction of TDS
1.5% per month interest is applicable for non-payment of TDS
Penalty
Penalty may be levied equal to the amount of tax.
Prosecution
If a person deducts tax at the source and is required to deposit it with the government but fails to do so, he may be punished with at least 3 months in prison, with a maximum penalty of 7 years.
TDS return
Anyone responsible for deducting TDS is required to file returns. This comprises firms, corporations, and individuals paying payments including salary, rent, and commissions.
Filing Frequency
Tax Deducted at Source returns is submitted quarterly. Here are the due dates:
- Q1 (April-June): July 31st
- Q2 (July-September): October 31st
- Q3 (October-December): January 31st
- Q4 (January-March): May 31st
Information Required for TDS Returns
Filing Tax Deducted at Source returns requires details such as:
- TAN (Tax Deduction and Collection Account Number)
- Amount of Tax Deducted at Source deducted
- Type of payment
- PAN (Permanent Account Number) of the deductee
How much is the Penalty for delaying the TDS return?
In case the assesse fails to file within this deadline of TDS return then they would be liable to pay ₹ 200 per day as a penalty U/S 234E, but the same would not be more than the amount of TDS payable.
Under U/S 271H, a penalty will be levied on the assessee up to ₹1 lakh if the return is not filed on time or if wrong information is given. Addition of this will also result under Section 234E penalty.
The penalty U/S 271H can be avoided in some conditions as follows:
- Deposit the tax deducted at the source to the central government.
- Pay late fees and interest if payable to the government.
- File the TDS return within one year from the due date.
Tax and Compliance Services in Gurgaon by Sterling Tax Partners
Sterling Tax Partners provides a wide range of tax and compliance services to help businesses remain compliant and develop efficiently. We provide the following services:
- GST Services – Ensuring that your firm follows GST requirements.
- International Taxation – The proper management of cross-border tax concerns.
- Company Registration – Helping you set up and manage your business.
- Direct Tax and Regulatory Services – Advancing income tax legislation and regulations.
- Transfer Pricing – Ensuring compliance in transactions involving connected entities.
Sterling Tax Partners, based in Gurgaon, provides reliable and professional services that are customized to your company’s needs.
Sterling Tax Partners can ensure that you never miss a TDS reporting deadline. Allow us to submit your TDS file correctly and on schedule.
Contact us today for hassle-free TDS filing services tailored to your business needs.