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TDS

TDS/TCS withholding & quarterly returns

Authority: Income Tax Dept · TRACES · ss.392–394 of the 2025 Act

Companies deduct tax on rent, fees, commission and salary, deposit it by the 7th and file quarterly. From 1 April 2026 the 194-series moved into section 393 of the new Act; rates and thresholds are largely unchanged.

What to do

Official: confirmed from the law, government notifications and expert sources · Case-specific: whether or how much it applies depends on your company; Adullam assesses it for you in consultation · Example: illustrative only.

MonthlyOfficial

Deposit last month's TDS by the 7th; March by 30 April.

Source: setindiabiz.com · checked
QuarterlyOfficial

31 July, 31 Oct, 31 Jan, 31 May; new form numbers apply (e.g. 26Q → Form 140).

Source: taxaj.com ·
As neededOfficial

10% land/building, 2% plant; above ₹50,000 a month (was ₹2.4 lakh a year).

Source: studycafe.in ·
As neededOfficial

10% professional, 2% technical; above ₹50,000 a year per category; no threshold for director fees.

Source: taxbuddy.com · checked
As neededOfficial

1% individuals, 2% others; above ₹30,000 per payment or ₹1 lakh a year. Manpower supply clearly covered from April 2026.

Source: blog.tdsman.com ·
As neededOfficial

2% above ₹20,000 a year.

Source: shriramfinance.in ·
As neededOfficial

0.1% above ₹50 lakh per supplier for buyers with ₹10 crore+ turnover; seller TCS on goods was removed in April 2025.

Source: indiafilings.com ·
As neededOfficial

Royalty, technical fees and interest at 10% under the treaty, dividends 15%, with a Korean TRC and Form 10F.

Source: incometaxindia.gov.in · checked
As neededOfficial

Usually 20% without a PAN.

Source: blog.tdsman.com ·
QuarterlyOfficial

Salary certificate is now Form 130 instead of Form 16; others after each quarterly return.

Source: cleartax.in · checked
AnnualOfficial

From April 2026 corrections must be filed within two years of the end of the relevant year.

Source: cleartax.in · checked

Deadlines


Source: setindiabiz.com · checked
Income tax

Source: taxaj.com ·
TRACES

Source: taxaj.com ·
TRACES

Source: taxaj.com ·
TRACES

Source: taxaj.com ·
TRACES

What we need from you

  • Payment list with payee PAN, amount, date
  • Lease, service and commission agreements
  • Non-resident: TRC, Form 10F, no-PE declaration
  • Lower/nil deduction certificates if any

Good to know

Budget 2026 added rule-based lower/nil certificates for small taxpayers and put manpower supply under contractor TDS (1%/2%). Rates are largely unchanged, but returns must quote the section 393 table entry.

Source: taxguru.in ·

Penalties & interest

1% a month until actually deductedOfficial Source: setindiabiz.com · checked
1.5% a month or part of a monthOfficial Source: setindiabiz.com · checked
₹200 a day, capped at the TDSOfficial Source: adullamcorp.com · checked
Withheld but unpaid TDS can lead to prosecution of officers. Whether the Budget 2026 relief covers your case, Adullam assesses from the factsCase-specific Source: adullamcorp.com ·

Our fees

Example: ₹2,000–₹8,000 a monthExample
Example: ₹2,500–₹10,000 per formExample
Issued at incorporation; 1–2 weeks separatelyExample
PROPERTY

Office & factory rent TDS

Lease with Adullam Property; rent TDS and GST reverse charge here.

Open Adullam Property →

Recent cases

Confirmed cases plus illustrative examples within real ranges; examples are labelled.

Example

A manufacturer paying ₹2 crore technical fees nearly applied domestic rates until it collected the TRC and Form 10F for the 10% treaty rate.

Example

At ₹45,000 a month rent is below the ₹50,000 monthly threshold since April 2025; many still deducted under the old annual rule.

Request a consultation

Are any of our Indian filings missing?

Our local accounting team and partner chartered accountant will look with you. The first consultation is free.

Phone+82-10-7641-4018
KakaoTalkceo_adlconsulting
Emailliminae@adullamcorp.com
WhatsApp+82-10-2991-4018
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TDS · Adullam Tax & Accounting