Overview
TDS default notices can disrupt
your business operations.
Tax Deducted at Source (TDS) under the Income Tax Act requires rigorous execution. Even a minor delay in deposit or incorrect section mapping triggers immediate interest liabilities (1.5% per month), late filing fees (Rs.200 per day), and systemic default notices from TRACES. More critically, failure to deduct TDS can lead to a 30% disallowance of expenses, impacting your taxable income.
Our TDS compliance audit provides a thorough diagnostic review. We verify deduction rates, validate deposit chalans, reconcile Form 26AS/AIS, audit quarterly return filings, and quantify any latent interest or penalty exposure.
Why This Matters
The Income Tax Department has automated TDS default identification through TRACES. Under Section 201(1A), short-deduction and short-payment defaults trigger automatic interest charges. Systemic discrepancies on employee or contractor payments also restrict your ability to secure lower-deduction certificates. We audit your ledger to identify discrepancies before the system does.
What We Audit
📋
Rate Applicability Check
Deductions verified against appropriate sections (194C, 194J, 194I, 194H) and applicable rates.
⏳
Chalan Deposit Audit
All TDS deposits cross-checked for timeliness against statutory due dates (7th of subsequent month).
🔍
Quarterly Return Reconciliation
Verification of filed returns (Form 26Q, 24Q, 27Q) against expense ledgers and bank debits.
💳
PAN Validity & Lower Deduction
PAN validity check for deductees to ensure no 20% double-rate triggers (Section 206AA).
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Salary TDS Review
Audit of Form 16 computations, investment proof validations, and Section 192 compliance.
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Form 15CA/15CB Review
Verification of foreign remittance payments and related Section 195 withholding taxes.
What You Receive
TDS Diagnostic Report - Complete list of deductions with classification, rate check, and gap highlights.
Short-Payment / Short-Deduction Registry - Precise ledger entries where TDS was under-deducted or delayed.
Quantified Liability Register - Interest and late fee calculation for delayed deposits or return filings.
Remediation & Filing Guide - Step-by-step guidance on filing correction statements and paying open demands.
30-Day Support - Technical advisory support on drafting replies to TRACES default notices.