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CAs & TaxGuide

TDS Deduction & Deposit Workflow for Indian Professionals

Navigating the TDS deduction process is crucial for compliance and avoiding penalties. This guide provides CA professionals with a clear workflow to ensure accurate deductions and timely deposits.

Updated 2026-05-27

The workflow

  1. 1Identify the nature of payment and applicable TDS rates as per the Income Tax Act.
  2. 2Calculate the TDS amount based on the payment made to the recipient.
  3. 3Deduct TDS from the payment before disbursing the amount to the payee.
  4. 4Deposit the deducted TDS amount to the government treasury using the prescribed challan.
  5. 5File the TDS return within the specified due dates, ensuring all details are correctly filled.
  6. 6Maintain proper records of TDS deductions and deposits for future reference.
  7. 7Provide the TDS certificate (Form 16/16A) to the deductee post-filing.

India-specific notes

  • Ensure you stay updated on the latest TDS rates and amendments as per the Finance Act.
  • Check if the recipient has provided their PAN to avoid higher TDS rates.

Common mistakes to avoid

✕Failing to deposit TDS on time, leading to penalties.
✕Incorrectly calculating TDS due to misunderstanding of applicable rates.
✕Not filing TDS returns, resulting in non-compliance issues.

Frequently asked

What is the due date for TDS payment in India?+

Generally, TDS must be deposited by the 7th of the following month.

What forms are used for TDS returns?+

Form 24Q for salary payments, Form 26Q for non-salary payments, and Form 27Q for foreign remittances.

How can I rectify errors in TDS returns?+

You can file a correction statement using the same TDS return form to rectify errors.

Please verify before acting

This output is a drafting aid, not legal, tax, financial or insurance advice. Sections, rates and deadlines must be verified against the actual document and current rules. Have a qualified professional review anything you file or send.