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TDS

TDS at the line. Returns from the books.

Section, rate and threshold per bill line. PAN verified live with CBDT. 24Q, 26Q and 27Q drafted from the deduction register and filed via TRACES.

TDS dashboard showing line-item deductions, challan status, vendor PAN verification and TRACES reconciliation.

TDS Auto-Deduction

TDS at the line, not at the bill.

Each bill line is assigned a TDS section (194C, 194J, 194I, 194Q, 194O), a rate and the applicable threshold based on its description, GL coding and vendor type. Vendor PAN verified live with CBDT. Section 197 LDC honoured at the line.

TDS Auto-Deduction screenshot

PAN Verification

PAN verified live with CBDT.

Every vendor PAN checked against the Income Tax Department's PAN status API at vendor onboarding and re-checked at every bill capture. Active, inoperative, blocked or unregistered status drives the surcharge bucket and the Section 206AA rate.

PAN Verification screenshot

TDS Challan Payment

TDS challans paid through Connected Banking.

Section-wise challans drafted from the deduction register. Paid through Connected Banking (ICICI, HDFC, Axis, Yes, Kotak, SBI). CIN (Challan Identification Number) captured automatically. Challan reconciled against deductions in real time.

TDS Challan Payment screenshot

TDS Challan Reconciliation

Every challan matched to its deduction.

Bank challan paid, CIN captured, reconciled against the deduction register at the line level. Variances (wrong section, wrong amount, missing deduction) surface before the return is drafted, not after the notice arrives.

TDS Challan Reconciliation screenshot

Quarterly TDS Returns

24Q, 26Q and 27Q drafted from your deductions.

Quarterly returns drafted from the deduction register, with the challan-CIN linkage built in. TRACES reconciliation runs before draft. CA reviews and signs off with DSC. Filed via the TRACES API. Default notice responses sourced from the same register.

Quarterly TDS Returns screenshot

Vendor TDS Tracking

Per-vendor TDS, threshold-aware.

Per-vendor, per-section YTD totals tracked across the FY. Threshold breaches flag at the line where they happen. 194Q vs 206C(1H) auto-resolved per relationship based on turnover history. The CFO sees vendor-wise TDS exposure on one dashboard.

Vendor TDS Tracking screenshot

194Q vs 206C(1H) Decisioning

194Q vs 206C(1H), resolved at the bill.

Section 194Q (buyer deducts 0.1% on goods purchases above ₹50L per FY per seller) and Section 206C(1H) (seller collects on the same kind of transaction) overlap. The system tracks both buyer and seller turnover histories and applies whichever side the law assigns.

194Q vs 206C(1H) Decisioning screenshot

Section 197 LDC

Section 197 LDCs honoured at the line.

Vendors with a lower-deduction certificate have section, rate and validity loaded at the vendor master. Bills posted within the window deduct at the lower rate. Bills posted outside the window deduct at the section default. Auto-expiry handles the cut-over.

Section 197 LDC screenshot

Form 16 Generation

Form 16 drafted, DSC-signed, emailed in bulk.

Annual Form 16 (Part A from TRACES + Part B from payroll) drafted automatically per employee. DSC sign-off captured. Emailed in bulk at FY-end. Employees self-serve from the portal; HR does not handle a stack of PDFs.

Form 16 Generation screenshot

Form 16A Generation

Form 16A drafted quarterly, DSC-signed, emailed to vendors.

Form 16A (vendor TDS certificate) drafted from the deduction register at quarter-end. TRACES request for the certificate processed automatically. DSC bulk-signed. Emailed to vendors. Vendor portal supports self-service download with read-receipt.

Form 16A Generation screenshot

TCS Collection

TCS at the sale, 206C and 206C(1H) handled.

TCS on traditional 206C categories (tendu leaves, scrap, motor vehicles > ₹10L, foreign-tour packages, overseas remittances) computed at sale. Section 206C(1H) on goods sale > ₹50L per buyer per FY computed where applicable. Quarterly 27EQ drafted from the collection register.

TCS Collection screenshot

TRACES Reconciliation

TRACES reconciled before notices arrive.

TRACES challan-status, deductee-default and 26AS extracts parsed automatically. Matched against your deduction register. Variances surface for action. Correction returns drafted before TRACES issues a default notice.

TRACES Reconciliation screenshot

At scale

TDS, by the numbers.

Live

PAN status check with CBDT

12+

sections covered (194C, J, I, Q, O, 195, 197, 206C…)

T+0

Form 16A drafted at quarter-end

100%

bills with section and rate at the line

Buyer FAQ

What teams ask before they switch.

194Q vs 206C(1H), how is the decision made?

Buyer/seller turnover thresholds and per-relationship transaction value are tracked. The system computes which side deducts vs collects at posting. Both sides are documented for audit.

Section 197 lower-deduction certificates. How are they handled?

Upload the LDC at the vendor master with section, rate and validity dates. The lower rate applies to bills posted within the certificate window. Auto-expiry brings the rate back to default; bills posted after expiry use the section default.

We had a TDS short-deduction notice last year. Would this have prevented it?

In most cases, yes. PAN status validation, FY threshold tracking and line-level section logic catch the common causes (inoperative PAN, threshold breach mid-FY, wrong section on a mixed bill). The audit trail supports your response if a notice still arrives.

How does TRACES reconciliation work?

TRACES download is parsed and matched against your deduction register. Variances (wrong PAN, wrong amount, missing deduction) surface for action; corrected return is drafted automatically when needed.

Foreign vendors under Section 195. DTAA + Form 15CA/CB?

Yes. Foreign vendors are tagged with TRC and DTAA position. Section 195 deduction is applied at the bill, at the DTAA rate where TRC is on file or the slab rate otherwise. Form 15CA Part D and Form 15CB metadata captured at the bill and drafted for CA review and bank submission.

Does it handle TCS, including 206C(1H)?

Yes. TCS at sale (206C, e.g. on tendu leaves, scrap, motor vehicles) and 1% TCS on goods sale above ₹50L (206C(1H)) are computed automatically. Quarterly TCS returns (27EQ) are drafted with the same flow as 24Q/26Q.

Form 16 (employees) and Form 16A (vendors). Both bulk-issued?

Yes. Form 16 is drafted from the payroll TDS deductions per FY, DSC-signed and emailed in bulk to employees. Form 16A is drafted quarterly from the vendor TDS deductions, signed and emailed to vendors.

Bring your last quarter's bills. See the TDS register, line by line.

Connect one entity, free. The next bill gets section, rate and threshold per line. PAN verified live with CBDT. The CA reviews the register; the next 24Q drafts itself.