TDS & Tax Liability — Understood. Reconciled. Resolved.
TDS is not the final tax — it is a credit against tax liability. We reconcile your TDS credits, compute actual liability, and resolve mismatches before they become demands.
Contact UsTax Deducted at Source is one of the most pervasive mechanisms in the Indian income tax system, but it is widely misunderstood. TDS is not a separate tax — it is an advance collection of income tax, deducted at source by the payer and credited against the recipient’s final income tax liability. The relationship between TDS deducted and actual tax liability determines whether the taxpayer receives a refund or has to pay additional tax.
A correct understanding of TDS provisions — which sections apply to which payments, at what rates, and on what threshold — is essential for both deductors (who must comply with deduction and filing obligations) and deductees (who must ensure their TDS credits are correctly reflected in Form 26AS and matched against their return). Mismatches between TDS deducted, TDS in Form 26AS, and tax payable as per the return are one of the most common triggers for income tax notices.
Our advisory covers the full landscape — from explaining TDS applicability for a specific payment category to reconciling AIS/Form 26AS mismatches, computing advance tax and self-assessment tax, and advising on TDS credit claims in ITR filings.
Our TDS & Tax Liability Services
TDS Applicability Advisory
Clear advice on which TDS provisions apply to specific payment types — salary, contractor fees, rent, interest, dividends, property purchases, and NRI payments.
AIS / Form 26AS Reconciliation
Detailed reconciliation of TDS credits in Annual Information Statement and Form 26AS against income declared in the ITR and TDS certificates received.
Tax Liability Computation
Computation of total income tax liability — accounting for TDS credits, advance tax paid, and self-assessment tax payable — to determine refund or balance due.
Advance Tax Planning
Quarterly advance tax computation and schedule to prevent interest under Sections 234B and 234C due to shortfall in advance tax.
TDS Mismatch Resolution
Identification and resolution of mismatches between TDS certificates received, Form 26AS credit, and amounts claimed in the ITR.
Section 194 Series Advisory
Comprehensive advice on the full Section 194 series — 194A (interest), 194C (contractors), 194D (insurance), 194H (commission), 194I (rent), 194J (professional fees), 194N (cash withdrawal), and others.
TRACES Credit Verification
Verification of TDS credits on TRACES and coordination with deductors to correct returns where TDS is deducted but not reflected in Form 26AS.
Notice Response for TDS Mismatch
Drafting of responses to income tax notices issued due to mismatches between TDS credits and income declared.
Our Process
Income & TDS Data Review
We review the taxpayer’s income sources, TDS certificates received (Form 16, 16A, 16B), and Form 26AS / AIS credit for the year.
Reconciliation
All TDS deducted is reconciled against income declared, with any mismatches identified and their cause determined.
Tax Liability Computation
Total tax liability is computed with TDS credit set off, revealing the refund due or balance payable.
Mismatch Resolution
Where mismatches are found, we coordinate with the deductor to file correction statements and update Form 26AS.
ITR Filing & Compliance
The reconciled figures are used in the ITR filing, with all TDS credits correctly claimed and the correct self-assessment tax paid.
Why It Matters
Frequently Asked Questions
TDS and tax liability questions?
We reconcile your TDS credits, compute actual liability, and resolve mismatches before they escalate into notices and demands.
