TDS Obligations for Professional Services

Tax Deducted at Source (TDS) can be confusing. Here’s what professionals need to know:

When TDS Applies

• Client is a company or high-income individual
• Payment is for professional services
• Payment exceeds threshold (usually ₹10,000+)

TDS Rates

• With PAN: 10% TDS
• Without PAN: 20% TDS (much worse!)

Critical Actions

• Provide PAN to all clients before they pay (saves 10%)
• Request Form 16A certificate after quarter-end
• Claim TDS credit in your income tax return
• Keep Form 16A certificates for 3+ years

Key Point

TDS is simple if you: (1) Give PAN, (2) Get Form 16A, (3) Claim credit in return.

Need TDS or return filing help? Call: +91 9318470769