Deducting under the wrong section
Each type of payment has its own section, rate and threshold. A wrong section means the wrong amount deducted, which can be treated as a short deduction.
Wrong or missing PAN
If the deductee’s PAN is wrong or not provided, the rate can be higher and the deductee may not get credit. Verify PANs before the first payment.
Late deposit and late return
Tax deducted must be deposited by the due date, and the quarterly statement must be filed on time. Delay brings interest and a daily fee. Both are avoidable with a calendar kept by your accountant.
A short checklist
- Keep a list of vendors with PAN and the applicable section.
- Deduct at the time of credit or payment, whichever is earlier.
- Deposit the tax before the due date and keep the challan.
- File the quarterly statement and reconcile it with the tax portal.
- Issue the certificates to deductees on time.
Quick answers
What happens if I forget to deduct?
You may have to pay the tax yourself with interest, and the expense can be disallowed for your own tax. We help you fix it.
Can I correct a filed TDS return?
Yes, through a correction statement. It is better to reconcile before filing.
This article is general information, not advice for your situation. Rules, limits and due dates change, so we confirm the current position before you act on it.