TDS (Tax Deducted at Source) Services
Tax Deducted at Source (TDS) is a mechanism under the Income Tax Act where tax is collected at the source of income. Under this system, a person making certain payments such as salary, interest, commission, rent, or professional fees is required to deduct tax before making the payment to the recipient. The deducted amount is then deposited with the government on behalf of the recipient.
TDS ensures a steady flow of revenue to the government and minimizes the chances of tax evasion. It is applicable to individuals, companies, firms, and other entities making specified payments under defined limits.
Who Should Deduct TDS?
- Employers deducting TDS on salaries.
- Businesses paying contractors, professionals, or rent above specified limits.
- Banks and financial institutions deducting TDS on interest or dividends.
- Any person or entity responsible for payments under TDS provisions.
Benefits of Proper TDS Management
- Compliance with Law – Avoid penalties and legal issues for non-deduction or late payment.
- Transparency – Helps maintain accurate financial records and reporting.
- Efficient Tax Collection – Ensures timely deposit of taxes with the government.
- Claiming Credit – Recipients can claim TDS as a credit against their total tax liability.
Our TDS Services at L S Kumar and Associates
- TDS Calculation & Deduction – Accurate computation of tax to be deducted as per applicable rates.
- TDS Payment & Deposit – Timely deposit of deducted tax with government authorities.
- TDS Returns Filing – Filing of quarterly TDS returns in compliance with statutory requirements.
- TDS Compliance Advisory – Guidance on exemptions, rates, and documentation for smooth compliance.
- TDS Certificates – Issuance and verification of Form 16/16A for employees and vendors.
At L S Kumar and Associates, our expert Chartered Accountants ensure seamless TDS management, compliance, and reporting. We help businesses avoid penalties, maintain proper records, and strengthen financial transparency. Proper TDS management not only ensures legal compliance but also builds trust and credibility with stakeholders.