TDS Return Filing and Compliance in Ahmedabad

Who it's for

This is for Ahmedabad businesses that pay people: the SG Highway company with thirty employees, the Shela builder paying contractors, the Vatva unit paying rent on a godown, the firm paying a consultant every month. Above the limits in the Act, payments like these usually make you a deductor, with tax to deposit monthly, returns to file quarterly and certificates to issue. Since 1 April 2026 this runs under the Income-tax Act, 2025, with new sections and new form numbers. We handle the TDS cycle for proprietorships, firms, LLPs and companies.

What's included

• TAN application in Form 135 before the first deduction. The rules allow up to 30 days after the month of deduction, but tax can't be deposited without a TAN, so applying late usually means late-payment interest. Then registration on the e-filing portal and, after the first return, on TRACES.
• TDS worked out on each payment, salaries under section 392 and contractor, rent, professional fee and other payments under the section 393 tables, with a PAN check on every payee, since a missing PAN means a higher rate.
• Salary TDS estimated for each employee from the salary structure and Form 124 claims, and revised as proofs come in.
• Monthly challan, ITNS 281N under the new Act, ready for payment by the 7th of the next month, or by 30 April for March.
• Quarterly returns in Form 138 for salaries, Form 140 for other payments to residents and Form 144 for other payments to non-residents, filed before the due dates. Where a payment to a non-resident needs an accountant's certificate, we arrange it through a practising Chartered Accountant.
• Certificates downloaded from TRACES and issued: Form 130 to employees every year and Form 131 to other payees every quarter.
• Correction statements, and responses to default notices and demands from CPC-TDS, the processing centre behind TRACES, filed from your TRACES login.

Documents required

• TAN and PAN of the business, with e-filing and TRACES logins if they already exist.
• Monthly salary register with each employee's PAN and salary structure.
• Employees' Form 124 claims with proofs for house rent, home loan interest and deductions, and Form 122 where they report other income or another employer's salary.
• Bills, agreements and ledger entries for contractor, rent, professional fee and commission payments, with each payee's PAN.
• Challan details for TDS already paid: BSR code, date of deposit and challan serial number.
• Lower deduction certificates and Form 121 declarations received from payees.
• For corrections: the RRR number of the original return, the latest conso file from TRACES and any notice received.

Typical timeline

TAN allotment depends on the department, so apply before the first deduction is due. Each month we agree a cut-off date for payroll and bills, and the challan amounts reach you for approval and payment before the 7th. Quarterly returns are filed ahead of the due date, because TRACES generates certificates only after the return is processed, and corrections take longer for the same reason. Backlogs of unfiled quarters or old demands are quoted after we check TRACES.

Why Ahmedabad businesses work with us

Our office is in Parswanath Chambers on Ashram Road, near the Income Tax circle. We work with businesses across Ahmedabad, and with businesses elsewhere in India when the work can be done online. TDS is filed online, but the paperwork rarely is, so we collect the salary sheet and bills from your accounts person each month and settle questions on a call or a visit fixed in advance. Because we also handle bookkeeping, GST and payroll, your TDS can be checked against the same ledgers. The senior partner has more than 15 years of experience in accounting and tax, and the other partner more than five.

Frequently asked questions

What changed for TDS under the Income-tax Act, 2025?

The new Act replaced the 1961 Act from 1 April 2026. Salary TDS is now under section 392, and most other TDS sits in the tables of section 393. Form 138 replaces Form 24Q, Form 140 replaces Form 26Q, and Form 130 replaces the Form 16 salary certificate. Your TAN stays the same. Anything paid or credited up to 31 March 2026 stays under the old Act and its forms, corrections included. Salary is the exception: it follows the date of payment, so March 2026 salary paid in April 2026 falls under section 392 and Form 138. Later returns must quote the new references, as old codes like 194C can cause processing errors.

What are the due dates for TDS payment and TDS returns?

Businesses deposit tax deducted in a month by the 7th of the next month, and tax on amounts paid or credited in March by 30 April. Quarterly returns are due on 31 July, 31 October, 31 January and 31 May, for the quarters ending June, September, December and March. Form 131 certificates are due within 15 days of each return due date, and Form 130 by 15 June after the year ends.

What happens if TDS is paid late or the return is filed late?

Interest runs for each month or part of a month: 1% from the date tax should have been deducted until it is, and 1.5% from deduction until deposit. A late return attracts a late filing fee under section 427, and a penalty can follow. Under section 35(b), 30% of a payment to a resident can also be disallowed in your own return if its TDS was not deducted, or not deposited by the due date for filing that return. The amount is allowed in the year the tax is finally paid.

We have a TDS default notice on TRACES. Should we just pay it?

Check it first. CPC-TDS matches each return with your challans and reported PANs, and flags short deduction, short payment, interest for late deduction or payment, late filing fees and PAN errors. The justification report shows what makes up each default. A genuine shortfall is paid by challan and linked to the return. Data errors, like a wrong PAN or a challan tagged to the wrong quarter, need a correction statement, allowed up to two years from the end of the tax year in which the return was due.

Do we have to file a TDS return for a quarter with no deductions?

Not if you deducted no tax in the quarter, since the return reports tax deducted and paid. You can file a declaration for non-filing on TRACES, which records that no return was due and avoids a notice. Two cases still need care. If a payee gave you a Form 121 declaration, formerly Form 15G or 15H, the return must be filed even though no tax was deducted. And if tax should have been deducted but wasn't, that is a default to correct, not a nil quarter.

Get a TDS compliance check on WhatsApp.

Send your TAN and the last quarter you filed. We will tell you what is pending and what we need to check TRACES for defaults.