What TDS is
On certain payments — salaries, professional fees, rent, contractor payments — you must deduct tax at source and deposit it with the government, then file returns. Many first-time founders miss this and face penalties.
Common TDS triggers
- Salaries to employees
- Professional / technical fees (Section 194J)
- Contractor payments (Section 194C)
- Rent above the threshold (Section 194I)
Stay compliant
- Deduct at the right rate when you pay or credit
- Deposit by the monthly due date
- File quarterly TDS returns
- Issue Form 16/16A to deductees
TDS penalties are about timing, not amount. Deposit on time and file quarterly — that alone avoids most trouble.
Need help putting this into action? Book a free 15-minute call with a Vaishnav Catalyst specialist.