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Incorrect TDS return filing creates a direct compliance bottleneck for businesses by preventing Form 16A generation and disrupting vendor reconciliations. Even minor errors in PAN details, challan mapping, or deduction reporting can cause TRACES processing failures, leaving deductors unable to issue certificates and vendors unable to claim tax credit. These mismatches impact cash flows, invite penalties, and delay statutory compliance. Addressing such errors quickly is essent

TDS return filing for non-salary payments is fundamentally different from salary-related compliance and cannot be managed through generic processes. Payments such as interest, rent, commission, and professional fees fall under multiple sections of the Income Tax Act, each with distinct rules, thresholds, and reporting requirements. Filing errors often arise when deductors apply standard templates or salary-based logic to Form 26Q, resulting in mismatches, return rejections, i

TDS return filing becomes complex when expenses are booked in one period but paid in another. Under the Income Tax Act, 1961, the timing of TDS deduction and reporting depends on whether tax is deducted at the time of payment or credit, whichever is earlier. Misalignment between booking dates and payment dates often leads to incorrect quarterly reporting, interest liability, and penalty exposure. Understanding how TDS applies in such cases is essential to ensure accurate comp

Section 194Q requires specified buyers to deduct TDS on the purchase of goods once the threshold of ₹50 lakh is crossed in a financial year. The rule applies only when the buyer’s turnover exceeds ₹10 crore in the preceding year, and the purchase is made from a resident seller. A TDS rate of 0.1% applies on the value exceeding ₹50 lakh, and 5% applies if the seller fails to furnish PAN. The intent is to bring high-value transactions into the reporting net and ensure better c

Form 26AS is the tax credit statement that records TDS, advance tax, and self-assessment tax reported against a PAN. Any mismatch between Form 26AS and documents like Form 16 or AIS can lead to refund delays, defective return notices, or incorrect tax calculations. Identifying inconsistencies before filing the return ensures smooth processing and prevents unnecessary tax scrutiny. A quick review of tax credits, deduction entries, and reported income helps eliminate errors t

Choosing the right TDS form is essential for accurate tax compliance under the Indian Income Tax Act. Both Form 24Q and Form 26Q serve as quarterly TDS return statements but apply to entirely different types of payments. Form 24Q is used for salary-based deductions under Section 192 , while Form 26Q applies to payments like rent, commission, and professional fees under Section 200(3). The right form ensures proper tax reporting and helps avoid penalties for incorrect filing

Section 195 of the Income Tax Act, 1961 mandates deduction of Tax Deducted at Source (TDS) on payments made to non-residents such as NRIs and foreign companies. It ensures that tax is collected at the source when income arises from India, covering payments like interest, royalty, professional fees, rent, and capital gains. This mechanism prevents tax evasion and secures government revenue by holding the payer accountable for deduction and remittance of tax to the government

Section 194H of the Income Tax Act, 1961 governs the deduction of tax at source on commission or brokerage payments made to residents. It ensures that income earned through intermediary services is reported accurately and taxed at the source itself. From 1 April 2025, the threshold limit has been raised to ₹20,000 and the TDS rate reduced to 2 percent, simplifying compliance for businesses and individual payers. TaxBuddy helps taxpayers understand such provisions and stay c

TDS  on property sale under  Section 194-IA ensures that tax is collected at the source during the sale of immovable property valued above ₹50 lakh. The buyer is responsible for deducting 1% TDS on the higher of the sale price or stamp duty value and depositing it with the government through Form 26QB. The seller, on the other hand, must ensure this TDS is reflected in Form 26AS to claim credit while filing the Income Tax Return . Understanding these obligations prevents mism

A TDS mismatch between Form 26AS and the Annual Information Statement (AIS) can lead to refund delays, inaccurate tax credit claims, and even income tax notices. The Income Tax Department uses both documents to verify reported income and tax deductions, so even minor differences must be resolved quickly. For Assessment Year 2025–26, the emphasis on reconciling TDS data across Form 26AS  and AIS has increased, as Form 26AS remains the official record of TDS credits, while AIS