Interest under Section 201(1A): (1) failure to deduct = 1% per month from the date deduction was due to actual deduction; (2) failure to deposit after deduction = 1.5% per month from deduction to actual payment. Additionally, under Section 40(a)(ia), 30% of the relevant expense is disallowed if TDS is not deducted — significantly increasing your taxable income.

Section 194Q (effective 1 July 2021) applies to buyers whose turnover exceeds ₹10 Crore in the previous year. If you pay more than ₹50 Lakh to a single seller in a financial year, you must deduct TDS at 0.1% on the amount exceeding ₹50 Lakh. Manufacturing and trading businesses in Vadodara's GIDC areas frequently cross this threshold and often overlook this provision.

You must file a Correction Statement on the TRACES portal. The type of correction depends on the error — PAN correction, challan correction, or deductee detail correction. Most corrections can be filed online through TRACES. We identify the specific error type, prepare the correction file in the correct format, and file it with TRACES — resolving your Demand Notices and Justification Reports systematically.

Yes. Under Section 194J, TDS must be deducted at 10% on professional fees paid to doctors, lawyers, architects, engineers, accountants, and consultants when the payment exceeds ₹30,000 in a financial year. For technical services (such as software development), the rate is 2%. Payments under royalty to resident individuals are also covered at 10%.

This typically indicates either (1) the deductor has not filed the TDS return, (2) the deductor has entered an incorrect PAN in the return, or (3) there is a challan mismatch. We provide complete TRACES reconciliation to identify the root cause — whether it requires a correction statement from your side, or documentation to support the vendor's follow-up with their deductor.