TDS

The law since 1 April 2026

TDS is now governed by section 393 of the Income-tax Act, 2025. The familiar 194-series provisions have been merged into tables, and the form numbers have changed. Older references still in circulation need to be read with this in mind.

What the work covers

• Reviewing payments to decide whether tax is to be deducted, and at what rate
• Computing and depositing tax within the due dates
• Quarterly TDS and TCS statements
• Certificates to deductees
• TAN registration and TRACES access

Defaults and corrections

Costs of a default build on one another: interest on late deposit, a late fee on late statements, a possible penalty and a disallowance of the expense in the deductor's own return. Short deductions, PAN errors and unmatched challans are identified from TRACES and corrected through revised statements.

Property purchases and non-residents

A buyer of property has obligations of their own, and these are different where the seller is a non-resident. A seller who would otherwise suffer excess deduction may be able to obtain a lower deduction certificate.