Tax Deducted at Source (TDS) was developed by the Indian Income Tax Department to collect tax from all sources of income. It is the amount deducted from a person’s income and remitted to the Central Government by an authorized deductor.
It is an advance tax and is totally a deductor’s (the one paying an income to the other) responsibility. If the payment exceeds a certain threshold limit, a company making payment is required to deduct tax at source according to the rates prescribed by the tax department.
There are various sections of TDS that suggest the nature and rate of TDS to be deducted while making payments. Having clear knowledge about the same is essential in the filing of TDS.
TDS applies to many expenses, some of them are –
- Salaries (Section 192)
- Rents and commission (Section 194 I and 194 H)
- Consultations and professional fees (Section 194 J)
- Interest payments to banks (Section 194 A) and more.
Filing TDS is imperative and inevitable for your business.
- The tax department is strict with late payment of TDS and takes it very seriously. Any delay or non-payment of TDS is subject to penalty. A penalty of Rs.200 per day shall be charged after the specified date of TDS filing in case of delay. In more serious cases, non-payment of TDS is punishable by imprisonment from 3 months upto 7 years.
- TDS acts as a measure for tax evasion as it automatically gets deducted from one’s income in a periodic manner.
- It makes paying tax convenient.
- TDS plays a major role in tax audits and makes the audit season less dreadful for businesses.
Manual Filing of TDS is a time consuming task and is prone to many errors. You can’t afford to go back and forth from the website to your software to cross check every minor mistake. Investing in cloud accounting software that cuts down various tedious steps of filing TDS becomes essential in this case.
RealBooks, a cloud-based GST accounting software, that handles your compliances efficiently, making the tasks productive and quick, is packed with robust features that help compute your taxes automatically and make detailed reports for the same.
With RealBooks’ TDS feature you get a plethora of benefits, to name few –
- Forget Errors of Omission!
Tired of incorrect TDS calculations? Or Missing out on TDS deductions? Or does TDS keep being posted to an Incorrect section?
Give up all such worries with the Rule TDS feature of RealBooks. With the automated TDS computation feature we focus on saving your valuable time by computing the precise amount of TDS, and posting it to the correct ledger.
- One-click Payment Posting
We aim to eliminate the wastage of time, by allowing our Users to do multiple tasks together. While tagging a TDS challan to the corresponding expenses, users can easily save the payment details at a go, which leads to auto posting of Payment entry in the books as well.
- Comprehensive reports
RealBooks focuses on easing out the whole TDS filing process. Every detail that is needed to file a TDS return is made available under a single report. This makes it easy to analyze the monthly liability section-wise, and file the return without much hassle.
- Challan report generation
Based on the challan details saved in the system, it generates a challan-wise report as well, which can be used for submitting the Returns on the portal.
- Quarterly Return Summary
While posting the payment entries, the system generates a Report on Form 24Q and Form 26Q as well, which is required for Quarterly Return Filing. The report is equipped with details regarding the challan number, section code, BSR code, TDS amount and Interest if any.
- Monthly TDS Summary
As the name suggests, Monthly TDS Summary Report provides the summary of Total expenses incurred Expense ledger wise, Taxable Amount and the TDS deducted against each such ledger, which helps the user to analyze the discrepancies.
- Availability of easy integrations
RealBooks is already compatible with many TDS filing sites, and also offers integration with third party TDS filing software that is being used at the user’s end.
While managing the business is your forte, managing your compliances smoothly is ours. Compliances are inevitable, but mistakes are. Let our business intelligent software redefine the day-to-day process of managing your books in a smarter way.
Switch to RealBooks cloud accounting solutions, and take your visionary organization towards a smarter and greener tomorrow.