Common Mistakes in TDS Returns and How to Avoid Them
TDS (Tax Deducted at Source) returns are a crucial part of tax compliance for businesses. However, mistakes in TDS filings can lead to penalties and legal complications. Here are common errors and tips to avoid them:
Common Mistakes
- Incorrect PAN Details:
- Providing incorrect or mismatched PAN details leads to higher tax deductions and rejections.
- Late Filing:
- Delays in filing TDS returns attract late fees under Section 234E.
- Wrong Challan Details:
- Errors in challan numbers, amounts, or assessment years can cause mismatches in records.
- Non-Deduction or Short Deduction:
- Failing to deduct TDS or deducting a lower amount results in penalties and interest.
- Omitting Non-Salary Payments:
- Not reporting TDS on payments like rent or contractor fees is a common oversight.
How to Avoid These Mistakes
- Use reliable accounting software or professional services to ensure accuracy.
- Verify PAN details before submitting.
- File returns promptly to avoid penalties.
- Double-check challan details before payment.
- Regularly review TDS obligations for all payment categories.
At The Tax Fusion, our experts ensure error-free TDS compliance, saving you from unnecessary fines and complications.
