TDS Guide for Businesses — Rates, Due Dates & Filing Process
By Parul Singh, GST Practitioner · TDS
Table of Contents
I handle TDS compliance for 50+ Delhi businesses. The most common mistake is not deducting at all — penalty under Section 271C equals the TDS amount.
Tax Deducted at Source (TDS) is a mechanism where the payer deducts tax before making payment to the recipient. Every business must comply with TDS provisions.
Key TDS Rates
| Payment Type | Section | TDS Rate | Threshold |
|---|---|---|---|
| Salary | 192 | Slab rates | No threshold |
| Contractor | 194C | 1% / 2% | ₹30,000/₹1L |
| Professional fees | 194J | 10% | ₹30,000 |
| Rent | 194I | 10% / 2% | ₹2,40,000 |
| Commission | 194H | 5% | ₹15,000 |
| Interest | 194A | 10% | ₹5,000 |
Quarterly TDS Returns
- Form 24Q: TDS on salary (quarterly)
- Form 26Q: TDS on non-salary payments
- Form 27Q: TDS on payments to non-residents
- Form 27EQ: TCS returns
Late filing fee for TDS returns: ₹200/day until filed. Also penalty of ₹10,000 to ₹1,00,000 for non-filing.