Deduction review
The right section, rate and threshold for each payment, including salary TDS under both regimes and payments to non-residents.
TDS Compliance Services in Kochi, Kerala
T K Chandy & Associates provides TDS compliance services in Kochi for companies, firms, LLPs, institutions and individuals. We work out the TDS and TCS to deduct, deposit it by the 7th, file quarterly statements in the new Forms 138, 140, 144 and 143, issue certificates, and clear TRACES defaults and demands.
- Led by a chartered accountant since 1994
- Member of SGA World International
- Kakkanad, Kochi
At a glance
TDS compliance at a glance
- Deposit: TDS deducted in a month is paid by the 7th of the next month; TDS deducted in March by 30 April.
- Quarterly returns: TDS statements are due 31 July, 31 October, 31 January and 31 May in Form 138 (salary, formerly 24Q), Form 140 (formerly 26Q) and Form 144 (non-residents, formerly 27Q); TCS in Form 143 (formerly 27EQ) by the 15th.
- Cost of default: Interest of 1% or 1.5% a month, a late fee of ₹200 a day, and disallowance of the expense in your tax computation.
- Our role: Rate checks, challans, returns, certificates, TRACES corrections and clearing default notices and demands.
Tax deducted at source (TDS) turns every business into a tax collector. When you pay salaries, rent, contractors, professionals, commission, interest or a non-resident, the law makes you deduct tax, pay it to the government, report it every quarter and give the payee a certificate. Each step has a deadline, and a mistake in one quarter appears as a default notice from TRACES months later.
Our TDS compliance services in Kochi cover the whole cycle. The team at T K Chandy & Associates in Kakkanad checks the section and rate for each payment, prepares the challans, files the quarterly statements, issues Form 130 and Form 131 certificates, and corrects past returns so your payees get credit and you do not get demands.
From 1 April 2026 TDS and TCS are governed by the Income-tax Act, 2025. TDS now sits in section 393 in table form, lower deduction certificates in section 395, and the return and certificate forms have new numbers under the Income-tax Rules, 2026. Statements for quarters up to March 2026 are still corrected under the old forms. We work with both.
TDS and TCS services
Who Needs TDS Compliance Support in Kochi?
Anyone who must deduct or collect tax at source, including:
- Companies and LLPs paying salaries, vendors, rent and professional fees
- Partnership firms and proprietors whose accounts are audited
- Hospitals, schools, trusts and societies with large staff and contractor payments
- Builders and property buyers, including buyers from NRIs
- Businesses paying non-residents for services, software or imports of services
- Sellers collecting TCS on scrap, minerals, liquor, overseas tour packages and other notified items
What the engagement covers
What Do Our TDS Compliance Services Include?
Monthly deposit
Challan preparation and payment by the 7th, with a monthly reconciliation of deductions to deposits.
Quarterly statements
Forms 138, 140, 144 and 143 (formerly 24Q, 26Q, 27Q and 27EQ) prepared, validated and filed on time.
TDS certificates
Form 130 (formerly Form 16) for employees and Form 131 (formerly 16A) for other payees, downloaded from TRACES.
Lower deduction certificates
Form 128 (formerly Form 13) applications for payees, and checking certificates your vendors give you.
TRACES corrections
Correction statements for wrong PANs, unmatched challans, short deduction and late payment entries.
Default and demand resolution
Analysis of TRACES justification reports, payment of genuine interest, and corrections for demands that are wrong.
Payee declarations
Form 121 (formerly 15G/15H) declarations and PAN checks, so you do not deduct at the higher no-PAN rate.
Non-resident payments
Withholding on payments abroad with treaty rates, and Forms 145 and 146 (formerly 15CA and 15CB) for the remittance.
New form numbers
Which TDS Forms Apply From 2026?
The Income-tax Rules, 2026 renumbered the TDS and TCS forms from 1 April 2026. Quarterly due dates are unchanged.
| Purpose | New form (2026 Rules) | Old form | Due date |
|---|---|---|---|
| TDS on salary – quarterly statement | Form 138 | 24Q | 31 Jul, 31 Oct, 31 Jan, 31 May |
| TDS on other resident payments – quarterly statement | Form 140 | 26Q | 31 Jul, 31 Oct, 31 Jan, 31 May |
| TDS on payments to non-residents – quarterly statement | Form 144 | 27Q | 31 Jul, 31 Oct, 31 Jan, 31 May |
| TCS – quarterly statement | Form 143 | 27EQ | 15 Jul, 15 Oct, 15 Jan, 15 May |
| Salary TDS certificate | Form 130 | Form 16 | By 15 June after the year |
| Non-salary TDS certificate | Form 131 | Form 16A | Within 15 days of the quarterly statement due date |
| Lower or nil deduction certificate (application) | Form 128 | Form 13 | Before the payment |
| Self-declaration for no TDS | Form 121 | 15G / 15H | Start of the year or before first payment |
| Remittance to a non-resident – declaration and CA certificate | Forms 145 and 146 | 15CA and 15CB | Before the remittance |
TDS deducted in a month is deposited by the 7th of the following month, and for March by 30 April. Statements for quarters of FY 2025-26 and earlier are filed and corrected in the old forms.
Common TDS rates
What Are the Common TDS Rates and Thresholds?
Rates for common payments to residents with a valid PAN. Without a PAN, TDS is generally deducted at 20% or the normal rate, whichever is higher.
Salary
- Rate
- Slab rates (employee's chosen regime)
- Threshold
- Above the exemption limit
Contractors, including supply of manpower
- Rate
- 1% individual or HUF; 2% others
- Threshold
- ₹30,000 per payment or ₹1 lakh a year
Professional fees
- Rate
- 10% (2% for technical services)
- Threshold
- ₹50,000 a year
Rent of land, building or furniture
- Rate
- 10%
- Threshold
- ₹50,000 a month
Rent of plant and machinery
- Rate
- 2%
- Threshold
- ₹50,000 a month
Commission or brokerage
- Rate
- 2%
- Threshold
- ₹20,000 a year
Interest other than on securities (banks)
- Rate
- 10%
- Threshold
- ₹50,000 a year; ₹1 lakh for senior citizens
Purchase of immovable property from a resident
- Rate
- 1%
- Threshold
- Consideration of ₹50 lakh or more
Our process
How Do We Manage Your TDS Each Quarter?
Step01
Onboarding review
We check your TAN, TRACES registration, past statements and any outstanding defaults before taking over.
Step02
Monthly deduction and deposit
You share the month's payments; we confirm the TDS and prepare challans for payment by the 7th.
Step03
Quarterly statement
We reconcile challans with deductions, validate PANs, and file the quarterly statement before the due date.
Step04
Certificates
We download Form 130 and Form 131 from TRACES and send them to employees and vendors.
Step05
Defaults and corrections
We check each quarter's processing result, file corrections, and resolve any demand before it grows.
Be ready
What Do We Need From You Each Month?
A simple monthly pack keeps TDS on time:
- TAN and TRACES login
- Payment register or ledger extract
- Vendor PAN and nature of service
- Salary register and employee regime choice
- Employee investment declarations (old regime)
- Lower deduction certificates from payees
- Form 121 declarations received
- Paid challans for the month
- Details of payments to non-residents
- TCS sales and collections, if any
- Previous quarter's statement and receipt
- Any TRACES or default notice
Budget 2026
What Changed in TDS and TCS in 2026?
Along with the new Act and forms, the Union Budget 2026 made several TDS and TCS changes from 1 April 2026 unless stated:
- Supply of manpower is treated as "work", so TDS is at the contractor rates (1% or 2%), ending the dispute over the professional-fee rate.
- Lower deduction certificates can be applied for electronically, with issue by the prescribed authority based on set conditions.
- From 1 October 2026, a resident individual or HUF buying property from a non-resident does not need a TAN to deduct and deposit the TDS.
- TCS rates were rationalised, as set out below.
See our Union Budget 2026-27 highlights and the tax compliance calendar 2026-27.
TCS from 1 April 2026
What Are the New TCS Rates?
Overseas tour package
2% on the full amount (was 5% / 20%), no threshold
LRS remittance for education or medical treatment
2% above ₹10 lakh (was 5%)
LRS remittance for other purposes
20% above ₹10 lakh (unchanged)
Sale of scrap
2% (was 1%)
Sale of coal, lignite or iron ore
2% (was 1%)
Sale of alcoholic liquor for human consumption
2% (was 1%)
Sale of tendu leaves
2% (was 5%)
Rates apply to collections from 1 April 2026 under section 394 of the Income-tax Act, 2025.
Consequences of default
What Happens If TDS Is Late or Wrong?
- TDS not deducted
- Interest at 1% a month from the date it should have been deducted until deducted, and you can be treated as an assessee in default
- TDS deducted but paid late
- Interest at 1.5% a month from the date of deduction until payment, paid before the statement is filed
- Quarterly statement filed late
- Late fee of ₹200 a day, up to the amount of TDS, under section 427
- Statement not filed or filed with wrong details
- Penalty of ₹10,000 to ₹1 lakh can also apply
- Expense paid without TDS
- 30% of the expense disallowed for resident payments, and the full amount for non-resident payments, until the TDS is paid
- Certificate not issued on time
- Penalty for each day of delay
- Short deduction or wrong PAN
- Demand on TRACES for the shortfall and interest, and the payee loses credit
Worked example
Example: Clearing TRACES Demands for an Ernakulam Hospital
A mid-sized hospital in Ernakulam had TRACES demands of about ₹6 lakh across eight quarters and doctors complaining that their TDS was missing from Form 26AS.
- The justification reports showed wrong PANs for visiting consultants, challans tagged to the wrong quarter, and short deduction where a contract nurse agency had been treated as professional fees in one quarter and as a contractor in another.
- We filed correction statements for each quarter, re-tagged the challans and updated PANs. Most of the demand disappeared once the corrections were processed.
- The genuine interest for late payment, a small part of the original figure, was paid and the defaults closed.
- We fixed the classification going forward, since supply of manpower is now treated as work at contractor rates.
The doctors received revised Form 131 certificates, and the hospital now files each quarter's statement with us before the due date.
Fees and timing
How Much Do TDS Compliance Services Cost in Kochi?
The fee depends on the number of deductees and transactions each quarter, how many types of statement you file (salary, non-salary, non-resident, TCS), whether payroll is included, the number of past quarters to correct, and the size of any outstanding TRACES demand. Ongoing compliance is usually quoted as a fixed monthly or quarterly fee; clean-up of past defaults is quoted separately. We agree the fee in writing after reviewing your TRACES account and last statements.
Why T K Chandy & Associates
Why Choose Us for TDS Compliance in Kochi?
CA-led since 1994
Rate decisions and corrections are reviewed by an experienced chartered accountant, not left to software.
Deadline discipline
Monthly deposit and quarterly filing reminders, so late fees and interest do not build up.
Old and new forms
We file current statements in the new forms and correct older quarters in the old ones.
Joined up with tax and audit
TDS matched to your books, GST and tax audit, so expenses are not disallowed at year end.
In Kakkanad, Kochi
Easy to reach for businesses in Infopark, Kakkanad, Edappally and across Ernakulam.
Secure handling
Payroll and vendor data handled confidentially and shared only with the department.
Related services
Which Other Services Go With TDS Compliance?
Payroll services
Monthly payroll with salary TDS, Form 130 and statutory deductions.
Accounts outsourcing
Bookkeeping that records TDS correctly every month.
Tax audit
TDS defaults are reported in the tax audit; we fix them before the audit.
Corporate tax
Company tax computation, where missed TDS leads to disallowances.
NRI tax services
TDS on purchases from NRIs, lower deduction certificates and remittances.
GST services
GST compliance, including TDS and TCS under GST where applicable.
Talk to us
Get your TDS on track
Tell us your TAN, the statements you file and any default notices. We will review your TRACES position and send a scope and fixed fee.
Prefer to talk now? Call +91 484 354 1530 or email [email protected].
Who prepared this page
Written and reviewed by chartered accountants at T K Chandy & Associates
This page is prepared by the audit and tax team at our Kakkanad, Kochi office and checked against the Companies Act, the Income-tax Act, GST law and ICAI standards. It is reviewed whenever the rules change.
- Last reviewed 29 October 2026
- Led by T K Chandy Vaidyan, chartered accountant since 1994
- Member of SGA World International
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Ask an expertFrequently asked questions
TDS compliance services in Kochi – frequently asked questions
Short answers to the questions clients in Kochi ask us most. Still unsure?
Talk to our team01.What is the due date for TDS payment?
TDS deducted in any month must be deposited by the 7th of the following month. TDS deducted in March can be deposited by 30 April.
02.What are the due dates for quarterly TDS returns?
31 July for April–June, 31 October for July–September, 31 January for October–December and 31 May for January–March. TCS statements are due on the 15th of the month after each quarter.
03.What is Form 140 in TDS?
Form 140 is the quarterly statement of TDS on payments to residents other than salary, under the Income-tax Rules, 2026. It replaces Form 26Q from 1 April 2026.
04.What replaced Form 24Q and Form 27Q?
Form 138 replaced Form 24Q for TDS on salary, and Form 144 replaced Form 27Q for payments to non-residents. TCS statements moved from Form 27EQ to Form 143.
05.Is Form 16 still issued?
The salary TDS certificate is now Form 130, which replaces Form 16 for tax year 2026-27 onwards. The non-salary certificate Form 16A is replaced by Form 131. Both must be generated from TRACES.
06.What is the late fee for filing a TDS return late?
₹200 for every day of delay, up to the amount of TDS in the statement. It must be paid before the late statement is filed, and a separate penalty can apply if the statement is not filed or is wrong.
07.What is the interest on late payment of TDS?
1% a month or part of a month if tax is not deducted, and 1.5% a month or part of a month if tax was deducted but paid late. Interest must be paid before the statement is filed.
08.How do I correct a TDS return?
Download the consolidated file from TRACES, correct the PAN, challan or deduction details, and file a correction statement. We review the justification report first so every error in the quarter is fixed at once.
09.Why did I get a TDS default notice from TRACES?
Common reasons are late payment, late filing, short deduction, wrong or invalid PANs, and challans that do not match the statement. Many demands disappear once the statement is corrected.
10.What is the TDS rate on supply of manpower?
From 1 April 2026, supply of manpower is treated as work, so TDS is at the contractor rates of 1% for individuals and HUFs and 2% for others.
11.How can a payee get a lower TDS certificate?
By applying in Form 128 (formerly Form 13) under section 395 of the Income-tax Act, 2025. If approved, the payer deducts at the rate in the certificate.
12.What is the TCS on overseas tour packages from April 2026?
2% on the full amount, with no threshold, replacing the earlier 5% and 20% rates.
13.Does an individual buying property need a TAN?
Not when buying from a resident seller. From 1 October 2026, a resident individual or HUF buying from a non-resident also does not need a TAN.
14.Do small businesses need to deduct TDS?
Companies, firms and LLPs must deduct TDS on specified payments. Individuals and HUFs generally must deduct only if their business accounts were audited in the previous year, though some rules, such as TDS on high rent and property purchases, apply to everyone.