For businesses across Kerala, receiving notices from the Income Tax Department for TDS non-compliance has become an all-too-common headache. Whether it’s a mismatch in PAN, delay in filing returns, or incorrect challan entries — even a small oversight in TDS (Tax Deducted at Source) compliance can trigger penalties, interest, and scrutiny. But the good news is, staying 100% compliant is not only possible — it can be easy and stress-free when you have the right knowledge and support.
In this detailed blog, we’ll break down the most common reasons businesses in Kerala receive TDS notices, how to avoid them, and the simple steps to ensure full compliance every quarter. If you’d rather let experts handle everything for you, OurTaxPartner.com offers complete TDS return filing support customized for Kerala-based enterprises.
Why Are Kerala Businesses Getting TDS Notices?
Despite best intentions, many small and mid-sized businesses in Kerala receive TDS-related notices due to avoidable errors or a lack of updated compliance knowledge. The most frequent reasons include:
- Failure to file quarterly TDS returns by the due date
- Mismatch between TDS deducted and reported in Form 26AS
- Non-deposit or late deposit of TDS after deduction
- Incorrect PAN or TAN entries in the return
- Incorrect section code or challan reference number
- Failure to issue Form 16/16A to employees and vendors
Most of these issues arise from improper record-keeping, limited in-house expertise, or trying to manage TDS manually without professional tools or advisory.
What Are the Risks of TDS Non-Compliance?
Ignoring TDS notices or delaying resolution can result in significant consequences for your business:
- Late Filing Fees: ₹200 per day under Section 234E
- Penalties: ₹10,000 to ₹1,00,000 under Section 271H for incorrect or missed filings
- Interest: 1% per month for late deduction and 1.5% per month for late deposit
- Disallowance of Expenses: Business expenses may be disallowed under Section 40(a)(ia)
- Compliance Rating Impact: Increased risk of audits and scrutiny in future assessments
How to Achieve 100% TDS Compliance: A Step-by-Step Guide
Step 1: Know Your TDS Deduction Obligations
If you’re making payments such as salary, rent, contractor fees, interest, or professional charges — and these exceed specified thresholds — you are liable to deduct TDS. Refer to the latest TDS rate chart to understand which sections apply.
Step 2: Register for TAN and Keep Records
Every deductor must have a valid TAN (Tax Deduction and Collection Account Number). Maintain a clean record of all deductions made, challans paid, and PANs of deductees.
Step 3: Deposit TDS Timely
After deduction, TDS must be deposited using Challan ITNS 281 on or before the 7th of the following month. Delay in deposit leads to interest liability and disallowance risks.
Step 4: File Quarterly Returns Without Error
You are required to file quarterly TDS returns in the correct forms:
- Form 24Q – For salaries
- Form 26Q – For all other domestic payments
- Form 27Q – For non-resident payments
Step 5: Issue Form 16 and 16A on Time
After filing, download Form 16 (for salary) and Form 16A (for other payments) from the TRACES portal and provide them to your deductees. This helps avoid disputes and ensures transparency.
Step 6: Reconcile with Form 26AS
Before finalizing your filings, always compare the TDS amounts with the deductees’ Form 26AS to detect mismatches. Early correction can help you avoid future notices.
Step 7: Act Immediately on Default Notices
If you receive a default or error notice from CPC or TRACES, act immediately. Ignoring notices can increase your financial liability and lead to prosecution in extreme cases.
Why Kerala Businesses Should Consider Professional Help
Managing TDS in-house can be risky, especially for small and medium enterprises without dedicated tax teams. Here’s why outsourcing TDS filing is a smart move:
- Experts stay updated on changing laws and rates
- Reduces chances of errors and default notices
- Saves time spent on government portals and paperwork
- Allows you to focus on business while ensuring compliance
OurTaxPartner.com offers end-to-end TDS compliance support across Kerala, including TAN registration, challan payments, return filings, correction statements, and notice handling.
What You Get with OurTaxPartner.com’s TDS Filing Service
- Accurate deduction calculation and challan preparation
- On-time quarterly TDS return filing
- Form 16/16A download and issuance
- Correction filing and error resolution
- CPC/TRACES portal management
- Regular reconciliation with Form 26AS
We’ve helped hundreds of businesses, educational institutions, trusts, and hospitals across Kerala maintain clean TDS compliance and avoid tax complications.
Conclusion: Stay Ahead, Stay Compliant
If you’re tired of receiving TDS notices, now is the time to take control. TDS return filing doesn’t have to be overwhelming — with the right system or expert support, your business can be 100% compliant every quarter.
Let professionals handle the compliance, while you focus on growth. Partner with OurTaxPartner.com and say goodbye to TDS notices for good.
Visit www.ourtaxpartner.com/filing-service/tds-compliance/ to learn more and get started today.
