Ashok Anshit & Co.

Here are the top reasons why hiring a CA for TDS filing is crucial:

1. Deep Technical Knowledge

TDS is governed by complex provisions of the Income Tax Act. Each section has specific thresholds, rates, rules, and forms. For example:

• Should you deduct TDS under 194C or 194J for website development services?
• What’s the TDS implication for rent paid to multiple landlords?
• When is Section 194M applicable?

A CA has the knowledge to interpret these laws correctly and apply the right sections and rates to your transactions. Do I need CA For TDS Filing

2. Avoid Errors That Lead to Penalties

Even a single-digit error in: Do I need CA For TDS Filing

• PAN of the deductee
• Incorrect challan number
• Wrong section code
• Late deposit or wrong TAN

…can result in notices, penalties, and late fees. A CA ensures error-free compliance and on-time filings, thus safeguarding your business from legal consequences. Do I need CA For TDS Filing

3. Guidance on Lower or NIL TDS Certificates

Sometimes, the deductee has already paid tax or their total income is below the taxable limit. In such cases, they may obtain a certificate for NIL or lower TDS under Section 197. Do I need CA For TDS Filing

A CA can help:

• Apply for such certificates
• Understand eligibility
• Ensure correct deduction based on the certificate

This reduces cash flow issues for recipients and promotes trust between businesses. Do I need CA For TDS Filing

4. TAN Registration and Management

Before deducting TDS, you must have a TAN (Tax Deduction and Collection Account Number). A CA can:

• Apply for TAN on your behalf
• Ensure correct usage across returns
• Track it in all communications with the IT Department

• 5. Accurate Return Filing and Reconciliation
• TDS returns (Form 24Q, 26Q, 27Q) must match:
• The challans paid
• Deductee details
• PAN numbers
• Tax deducted and deposited

A CA helps ensure all data is reconciled with the TRACES portal and Form 26AS to avoid mismatch issues. Do I need CA For TDS Filing

6. Expert Use of TRACES Portal

TRACES (TDS Reconciliation Analysis and Correction Enabling System) is the official government portal for TDS. It can be confusing for non-professionals. Do I need CA For TDS Filing

A CA can:

• Download and verify Form 16, 16A
• File correction returns
• Handle demands raised on TRACES
• Verify TDS credits claimed by deductees

7. Drafting and Issuing TDS Certificates

It’s mandatory to issue:

• Form 16 for salaries
• Form 16A for other payments

Chartered Accountants use certified software and legal formats to generate these certificates accurately and on time, avoiding last-minute hassles.

8. Representation in Case of Scrutiny or Notices

If the Income Tax Department issues a notice due to:

• Late TDS deposit
• Mismatch in PAN details
• Discrepancy in returns vs. challans

… a CA can represent you professionally, draft replies, attend hearings, and resolve issues effectively.

9. Record Maintenance and Future Audit Support

TDS involves multiple documents:

• Deduction ledgers
• PAN details
• Challans
• Certificates
• Return files

A CA helps you maintain systematic records, which is crucial for:

• Tax assessments
• Internal audits
• Statutory audits
• Legal proceedings

10. Peace of Mind

As a business owner or professional, your focus should be on growing your business, not spending hours understanding changing tax provisions or fixing TDS errors.

With a CA, you get:

• Timely reminders for deadlines
• Accurate deduction and deposit
• Efficient compliance
• No stress about penalties or legal issues

Real-World Scenarios Where Clients Needed CA Help

Case 1: Startup Deducting TDS on Freelancer Payments

A Delhi-based tech startup was paying regular freelancers but had no idea about Section 194J. They didn’t deduct TDS and received a demand notice of ₹3.5 lakhs.

We assisted them in:

• Filing correction returns
• Paying the due TDS with interest
• Re-establishing compliance

Case 2: Rent Paid Without TDS Deduction

A client was paying ₹60,000/month as rent to a single landlord but didn’t deduct TDS under Section 194I. During assessment, the expense was disallowed, and they faced an additional tax burden.

Our CA team helped:

• Rectify returns
• Educate the client on thresholds
• Implement a compliant accounting system

Case 3: Wrong TDS Section Chosen

An e-commerce company deducted TDS under 194C for professional services, instead of 194J, leading to under-deduction.

The CA rectified the section, deposited the differential amount, and filed a correction return to avoid further penalties.