Three Stages of TDS Compliance for a Company
Monthly TDS Liability Computation
For expenses done by any company in a month, TDS liability has to be calculated before 7th of next month and TDS has to be deposited with government mentioning the sections of TDS under which TDS has been deducted. Company needs to preserve the details like TDS Challan No., BSR Code and Date for quarterly return filing.
Quarterly Return Filing
Based on the monthly TDS Challans, company need to file its quarterly Income Tax Returns as per utilities for Form 26Q or Form 27EQ as applicable to the government and once such return is filed & accepted by government, respective Form 16A(s) can be shared with vendors and same information is populated in 26AS form of the vendor(s) on TRACES portal
Annual Form 3CD (as per Clause 34A of Income Tax Act)
Company needs to reconcile all its expenses & payments (transaction wise) for TDS deduction mentioning whether the expense was subject to TDS or not with reason mentioned. If the right amount of tax was deducted or lesser amount. If lesser amount of TDS was deducted then companies need to pay interest. Company needs to get this attested by auditors to complete the audit.