TDS Return Filing in Pondicherry

File quarterly TDS returns (Form 24Q, 26Q, 27Q, 27EQ) accurately and on time. We handle TAN registration, challan reconciliation, TRACES correction statements and Form 16/16A generation for businesses and employers in Pondicherry.

TDS Return Forms — Which Applies to You?

Form Who Files TDS Applicable On Due Date
Form 24QAll employersSalaries (Section 192)31 Jul / 31 Oct / 31 Jan / 31 May
Form 26QCompanies, firms, individuals (audit cases)Payments other than salary (rent, professional fees, interest, contractor)31 Jul / 31 Oct / 31 Jan / 31 May
Form 27QAny deductorPayments to non-residents (NRIs) u/s 19531 Jul / 31 Oct / 31 Jan / 31 May
Form 27EQSellers of specified goodsTax Collected at Source (TCS) — Section 206C15 Jul / 15 Oct / 15 Jan / 15 Apr

* Q4 due date (31 May) is for the last quarter ending 31 March.

Common TDS Sections & Rates

Section Nature of Payment TDS Rate Threshold
192SalaryAs per slabAbove basic exemption
194AInterest (other than securities)10%Rs. 40,000 (bank); Rs. 5,000 (others)
194CContractor / sub-contractor1% / 2%Rs. 30,000 per transaction / Rs. 1 lakh annual
194HCommission / brokerage5%Rs. 15,000
194IRent2% / 10%Rs. 2,40,000 per annum
194JProfessional / technical fees2% / 10%Rs. 30,000
194QPurchase of goods0.1%Rs. 50 lakh from a single seller

Penalties for Late TDS Filing

Late Filing Penalty under Section 234E

Rs. 200 per day for every day of default — from the due date until the return is filed. The total penalty cannot exceed the total TDS amount for that quarter. This is a mandatory fee, not waivable.

Penalty under Section 271H

If the return is not filed within 1 year from the due date: penalty of Rs. 10,000 to Rs. 1,00,000 in addition to Section 234E levy. Also applicable for furnishing incorrect information.

Beyond penalties, late/incorrect TDS returns result in TRACES mismatches — the deductees (employees/vendors) cannot claim TDS credit in their ITR, causing disputes and demand notices.

Our TDS Compliance Services

TAN Registration

Apply for Tax Deduction Account Number (TAN) — mandatory for all deductors. Form 49B online application.

Quarterly TDS Returns

File Form 24Q, 26Q, 27Q or 27EQ on time via TRACES portal. Challan verification before filing.

Correction Statements

Rectify errors in filed TDS returns — wrong PAN, short deduction, challan mismatch — through TRACES correction statements.

Form 16 / Form 16A

Generate and issue TDS certificates — Form 16 (salary) and Form 16A (non-salary) — to employees and deductees.

26AS / AIS Reconciliation

Reconcile TDS deposited with Form 26AS and AIS to ensure full credit reflection for deductees before ITR filing.

Lower Deduction Certificate

Apply for Form 13 (lower/nil TDS certificate) under Section 197 for eligible individuals and businesses.

TDS Return Filing Process

1
Data Collection

Collect payment details, deductee PAN, challan numbers (BSR code + date + serial), and TDS amounts for the quarter. We provide a structured data template.

2
Challan Verification

Verify TDS challans against OLTAS (Online Tax Accounting System) to ensure correct mapping before return preparation. Mismatched challans cause demand notices.

3
FVU Preparation & Validation

Prepare the return file using NSDL's Return Preparation Utility (RPU) and validate using File Validation Utility (FVU). Resolve all validation errors before submission.

4
TRACES Submission

Upload validated FVU file to TRACES/TIN-NSDL portal. Online upload via DSC (Digital Signature Certificate) or physical submission at TIN-FC for returns with 20+ deductees.

5
Acknowledgement & Form 16/16A

Download provisional receipt / acknowledgement. Generate and issue Form 16 (salary — by 15 June) or Form 16A (quarterly — within 15 days of due date) to deductees.

Frequently Asked Questions

Who is required to deduct TDS?
All companies, firms, government offices, co-operative societies and individuals/HUFs who are subject to tax audit in the preceding year must deduct TDS on specified payments. Individuals not subject to audit must deduct TDS only on rent exceeding Rs. 50,000/month (Section 194IB) and on payments to contractors for personal use.
What if TDS is deducted but not deposited on time?
Interest under Section 201(1A) is charged at 1.5% per month (or part of month) from the date of deduction to the date of deposit. The deductor is treated as an "assessee in default" and demand notices are raised. Timely deposit is critical — 7th of next month for most payments, 30 April for March deductions.
What is a TRACES correction statement?
If errors are found in a filed TDS return (wrong PAN, incorrect amount, wrong section code, challan mismatch), a correction statement must be filed on TRACES. There can be multiple correction rounds. We handle all correction filings to ensure Form 26AS accurately reflects the TDS for your deductees.
Is TDS applicable on rent paid to a landlord?
Yes. Under Section 194IB, any individual or HUF (not under tax audit) paying rent exceeding Rs. 50,000 per month to a landlord must deduct TDS @ 5% once a year. A single challan (Form 26QC) must be filed within 30 days of the last month of tenancy. We assist with Form 26QC filing and Form 16C issuance to landlords.

File Your TDS Returns On Time

Avoid Rs. 200/day penalty under Section 234E. Our tax team handles all quarterly TDS returns, correction statements and Form 16/16A generation for Pondicherry businesses.