Tax Deducted at Source (TDS) is an essential component of India’s taxation system. It ensures a steady inflow of revenue to the government and spreads the tax collection process across the year. However, ensuring TDS compliance can be complex for businesses—especially SMEs, startups, and professionals who may not have a full-fledged accounting department. This is where Chartered Accountants (CAs) and professional tax consultants play a crucial role.
Whether you’re an employer, contractor, or service provider in Kerala, aligning with expert tax professionals can make the difference between seamless compliance and regulatory setbacks. This blog highlights the key responsibilities that CAs and tax consultants shoulder in ensuring robust TDS compliance for their clients.
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1. Identifying TDS Applicability
One of the first steps to TDS compliance is identifying when and where TDS provisions apply. Chartered Accountants and tax consultants help businesses determine the following:
- Which payments are subject to TDS (e.g., salaries, rent, professional fees, commissions)
- The applicable section of the Income Tax Act (e.g., Section 194C, 194J, 192, etc.)
- The threshold limits beyond which TDS must be deducted
- The correct TDS rates depending on recipient status (resident, non-resident, company, etc.)
2. Obtaining and Validating TAN
A Tax Deduction and Collection Account Number (TAN) is mandatory for deducting TDS. CAs assist businesses in:
- Applying for TAN with the Income Tax Department
- Correcting or updating TAN details if required
- Validating whether TAN is active and usable for TDS filings
3. Accurate Calculation of TDS
Misapplication of TDS rates can lead to short deductions, interest liabilities, or notices from the Income Tax Department. Professional tax consultants ensure that:
- TDS is calculated correctly as per applicable rules
- Surcharge and cess, where applicable, are factored in
- Deductee declarations like Form 15G/H or lower/nil deduction certificates (Form 13) are considered
4. Timely Deposit of TDS to Government
After deduction, TDS must be deposited to the Central Government account by the 7th of the following month (except for March, where it’s due by April 30th). Chartered Accountants ensure:
- Preparation of challans through the OLTAS portal
- Accurate quoting of TAN, assessment year, and payment section
- Generation of BSR codes and CIN numbers for verification
5. Filing of TDS Returns (Forms 24Q, 26Q, 27Q, 27EQ)
This is perhaps the most visible aspect of TDS compliance. CAs and consultants handle quarterly e-filing of TDS returns with utmost precision. They ensure:
- Data validation using Return Preparation Utility (RPU)
- Generation and upload of FVU files through TRACES
- Issuance of Form 16, Form 16A, and Form 27D to deductees
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6. TDS Reconciliation and Form 26AS Matching
Mismatch between reported TDS and the government’s records (Form 26AS) can create issues for both the deductor and the deductee. CAs reconcile TDS data with:
- Bank challans and BSR codes
- TRACES portal data
- Deductees’ Form 26AS to avoid disputes and unnecessary correspondence
7. Handling TDS Defaults and Department Notices
When a business faces a TDS default due to late payment, incorrect PAN, or under-deduction, tax consultants step in to resolve the matter. They assist in:
- Drafting replies to TDS default notices
- Calculating interest, penalty, and late filing fees (u/s 201, 234E, 271H)
- Making corrections through online TDS correction facility in TRACES
8. Year-End Activities and Form 16 Generation
For salaried employees, Form 16 serves as an essential tax certificate. Chartered Accountants assist employers by:
- Collating salary and TDS data
- Generating Part A and Part B of Form 16
- Ensuring digital signature compliance before distribution
9. Strategic Planning and TDS Advisory
Beyond compliance, experienced tax professionals advise clients on optimizing cash flow, reducing liabilities, and ensuring full compliance. Their insights help businesses avoid common mistakes and streamline processes using automation tools and cloud platforms.
10. End-to-End TDS Compliance with OurTaxPartner.com
If you’re looking for dependable and experienced professionals to handle your TDS tasks in Kerala, OurTaxPartner.com provides full-service support including:
- Monthly deduction tracking and calculation
- Challan payments and form uploads
- Quarterly TDS returns and Form 16 generation
- Timely reminders and compliance calendars
- Corrections and reconciliations
Our team of qualified tax consultants and CAs ensures that your TDS responsibilities are fulfilled accurately, affordably, and on time. Whether you are a small business, educational institution, hospital, or freelancer hiring subcontractors—TDS compliance is no longer a headache when you partner with the right experts.
Conclusion
The role of Chartered Accountants and tax consultants in TDS compliance goes beyond number crunching. They act as advisors, watchdogs, and facilitators to ensure that your business meets all its tax obligations without errors. With continuous changes in tax law and portal functionalities, professional support is no longer optional—it’s essential.
Looking for stress-free TDS compliance in Kerala? Connect with OurTaxPartner.com today and let our tax experts take care of everything from deduction to filing.
