TDS Return Filing & Compliance in Raipur

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Practice Index (8 Sections)

Practice Overview & Verification

TDS Return Filing & Compliance in Raipur — Statutory Scope

Chartered Accountancy advisory and audit services in Raipur, Chhattisgarh & Kalahandi, Odisha. Direct partner supervision ensuring full compliance with ICAI standards and applicable statutes.

Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are ongoing statutory obligations governing all commercial enterprises, employers, contractors, and property buyers in India. Tax must be deducted at prescribed rates at the time of credit or payment (whichever is earlier), deposited with the government via Challan ITNS 281 by the 7th of the following month, reported quarterly on the TRACES portal, and certified to deductees in Form 16/16A.

Under the Income-tax Act, 1961, non-compliance triggers heavy financial liabilities: ₹200/day late filing fee under Section 234E, 1.5% monthly interest under Section 201(1A), penalty up to ₹1,00,000 under Section 271H, and a 30% disallowance of the entire expenditure under Section 40(a)(ia).

At Rabi Agrawal & Associates, we handle end-to-end withholding tax compliance for manufacturing companies, steel traders, real estate developers, contractors, and educational institutions across Raipur and Chhattisgarh.

Statutory TDS / TCS Forms, Sections & Withholding Rates Matrix

Overview of core withholding tax categories under the Income-tax Act, 1961:

Statutory TDS / TCS Sections, Quarterly Return Forms & Thresholds

Nature of Payment / Transaction	Statutory Section	Threshold Limit	Applicable TDS Rate	Quarterly Return Form
Salary Payments to Employees	Section 192	Basic Exemption Limit (₹2.5L / ₹3L)	Applicable Slab Rates (New/Old Regime)	Form 24Q
Contractor & Subcontractor Payments	Section 194C	Single: ₹30,000 / Aggregate: ₹1,00,000/yr	1% (Ind/HUF) / 2% (Other entities)	Form 26Q
Professional & Technical Fees / Royalty	Section 194J	₹30,000 per financial year	2% (Technical services) / 10% (Professional fees)	Form 26Q
Rent on Land, Building & Furniture	Section 194I	₹2,40,000 per financial year	2% (Plant & Machinery) / 10% (Land & Building)	Form 26Q
Purchase of Goods exceeding ₹50 Lakhs	Section 194Q	₹50.00 Lakhs in preceding FY (Buyer T/O > ₹10 Cr)	0.1% on purchase value exceeding ₹50 Lakhs	Form 26Q
Tax Collection at Source on Scrap / Goods	Section 206C(1) / 206C(1H)	Scrap: Any value / Goods: > ₹50 Lakhs	1% on Scrap / 0.1% on Goods turnover > ₹50L	Form 27EQ
Payments to Non-Residents & Foreign Companies	Section 195	Any taxable payment / DTAA rates	As per Act or DTAA beneficial rates (Form 15CB)	Form 27Q
TDS on Immovable Property Purchase	Section 194-IA	Property consideration >= ₹50.00 Lakhs	1% of Total Consideration or Stamp Duty Value	Form 26QB (Challan-cum-statement within 30 days)

Nature of Payment / Transaction: Salary Payments to Employees

Statutory Section: Section 192

Threshold Limit: Basic Exemption Limit (₹2.5L / ₹3L)

Applicable TDS Rate: Applicable Slab Rates (New/Old Regime)

Quarterly Return Form: Form 24Q

Nature of Payment / Transaction: Contractor & Subcontractor Payments

Statutory Section: Section 194C

Threshold Limit: Single: ₹30,000 / Aggregate: ₹1,00,000/yr

Applicable TDS Rate: 1% (Ind/HUF) / 2% (Other entities)

Quarterly Return Form: Form 26Q

Nature of Payment / Transaction: Professional & Technical Fees / Royalty

Statutory Section: Section 194J

Threshold Limit: ₹30,000 per financial year

Applicable TDS Rate: 2% (Technical services) / 10% (Professional fees)

Quarterly Return Form: Form 26Q

Nature of Payment / Transaction: Rent on Land, Building & Furniture

Statutory Section: Section 194I

Threshold Limit: ₹2,40,000 per financial year

Applicable TDS Rate: 2% (Plant & Machinery) / 10% (Land & Building)

Quarterly Return Form: Form 26Q

Nature of Payment / Transaction: Purchase of Goods exceeding ₹50 Lakhs

Statutory Section: Section 194Q

Threshold Limit: ₹50.00 Lakhs in preceding FY (Buyer T/O > ₹10 Cr)

Applicable TDS Rate: 0.1% on purchase value exceeding ₹50 Lakhs

Quarterly Return Form: Form 26Q

Nature of Payment / Transaction: Tax Collection at Source on Scrap / Goods

Statutory Section: Section 206C(1) / 206C(1H)

Threshold Limit: Scrap: Any value / Goods: > ₹50 Lakhs

Applicable TDS Rate: 1% on Scrap / 0.1% on Goods turnover > ₹50L

Quarterly Return Form: Form 27EQ

Nature of Payment / Transaction: Payments to Non-Residents & Foreign Companies

Statutory Section: Section 195

Threshold Limit: Any taxable payment / DTAA rates

Applicable TDS Rate: As per Act or DTAA beneficial rates (Form 15CB)

Quarterly Return Form: Form 27Q

Nature of Payment / Transaction: TDS on Immovable Property Purchase

Statutory Section: Section 194-IA

Threshold Limit: Property consideration >= ₹50.00 Lakhs

Applicable TDS Rate: 1% of Total Consideration or Stamp Duty Value

Quarterly Return Form: Form 26QB (Challan-cum-statement within 30 days)

⚙️ Step-by-Step Procedure & Workflow

Quarterly TDS/TCS Filing Deadlines & Monthly Deposit Rules

TDS/TCS compliance follows a strict statutory calendar:

01
Monthly Deposit (By 7th): Tax deducted during the month must be deposited via electronic Challan ITNS 281 by the 7th of the following month (except for March deductions, which can be deposited up to 30th April).
02
Quarter 1 (April to June): Quarterly return in Form 24Q/26Q/27Q/27EQ due by 31st July.
03
Quarter 2 (July to September): Quarterly return due by 31st October.
04
Quarter 3 (October to December): Quarterly return due by 31st January.
05
Quarter 4 (January to March): Quarterly return due by 31st May.
06
Certificate Issuance: Form 16 (Annual Salary TDS) due by 15th June; Form 16A (Quarterly Non-Salary TDS) due within 15 days of filing quarterly return.

⚠️ Statutory Penalty & Risk Advisory

Metal Scrap TDS & TCS in Raipur's Steel Sector

Raipur is one of India's largest steel manufacturing hubs. Metal scrap transactions involve overlapping direct and indirect tax withholding obligations:

1. Section 206C(1) TCS @ 1%: Sellers of industrial metal scrap must collect 1% TCS unless the buyer furnishes a declaration in Form 27C certifying that scrap will be used in manufacturing.

2. Section 194Q TDS @ 0.1%: If Form 27C is submitted, the seller does not collect TCS, but the buyer (with turnover > ₹10 Cr) must deduct 0.1% TDS on purchases exceeding ₹50 Lakhs under Section 194Q.

3. GST Section 51 TDS @ 2%: Under Notification No. 25/2024-Central Tax (effective October 2024), registered buyers of metal scrap (Chapters 72 to 81) from registered suppliers must deduct 2% GST TDS in B2B supplies exceeding ₹2.5 Lakhs.

⚠️ Statutory Penalty & Risk Advisory

Statutory Penalties & Expense Disallowance under Section 40(a)(ia)

Section 40(a)(ia) 30% Disallowance: If tax is not deducted on payments to residents (contractors, professionals, rent, commission), or deducted but not deposited before the ITR due date, 30% of the entire payment is disallowed as a business expense, substantially inflating taxable income.

Section 234E Late Filing Fee: A mandatory late fee of ₹200 per day applies from the due date until the quarterly TDS return is filed (capped at total tax deducted).

Section 201(1A) Interest: 1% per month for failure to deduct from date of deductible; 1.5% per month for failure to deposit from date of deduction.

Scope of Practice Services by CA Rabi Agrawal & Associates

Our corporate tax team manages TAN registration, monthly challan generation, pre-filing PAN validation, quarterly Form 24Q/26Q/27Q/27EQ electronic filings, TRACES correction statements for mismatched challans or PAN errors, Form 16/16A generation, and Section 197 lower-deduction certificate applications.

📍 Pandri, Raipur Practice Headquarters

Consult CA in Raipur for TDS Return Filing & Compliance in Raipur

Visit our Head Office at GF-28, Shyam Plaza, Pandri, Raipur or connect directly with our Chartered Accountant partners for end-to-end advisory and statutory compliance.

🏛️ CA in Raipur Hub →📞 +91 86978 14116

What are the quarterly TDS return due dates?

Quarter 1 (April-June): 31st July; Quarter 2 (July-Sept): 31st October; Quarter 3 (Oct-Dec): 31st January; Quarter 4 (Jan-March): 31st May.

When is TDS deposit due each month?

TDS must be deposited by the 7th of the following month (e.g., April TDS is due by 7th May). For March deductions, the deposit due date is 30th April.

What is the penalty for late filing of TDS returns?

Under Section 234E, a late fee of ₹200 per day is charged for every day of delay until the return is filed, capped at the total amount of TDS in the return. Additionally, Section 271H penalty of ₹10,000 to ₹1,00,000 can be levied if unfiled beyond 1 year.

How does Section 40(a)(ia) disallowance affect my tax liability?

If TDS is not deducted or deposited before the ITR due date, 30% of the expense (contractor fees, professional charges, rent) is disallowed and added back to taxable profits, resulting in higher income tax and interest.

How is metal scrap treated under TDS and TCS?

Sellers collect 1% TCS under Section 206C(1) unless the buyer furnishes Form 27C for manufacturing use. If Form 27C is submitted, the buyer deducts 0.1% TDS under Section 194Q. Additionally, 2% GST TDS under Section 51 applies to B2B scrap supplies exceeding ₹2.5 Lakhs.

⚡ Tax Planning UtilityTY 2026–27