1. Applicability of TDS

• TDS is applicable on payments such as salary, rent, professional fees, contract payments, interest, and commission
  
• Deduction is mandatory if the payment amount exceeds the prescribed threshold under relevant sections
  
• Applicable irrespective of company size or profit status
  

2. Deduction and Deposit Responsibility

• The company is responsible for deducting TDS at the correct rate while making payments
  
• TDS must be deposited with the Income Tax Department by the 7th of the following month
  
• Delay in deduction or payment attracts interest and penalties
  

3. TDS Return Filing

• Private companies must file quarterly TDS returns in prescribed forms (24Q, 26Q, etc.)
  
• Returns must include details of deductees, amounts paid, and tax deducted
  
• TDS certificates (Form 16, Form 16A) must be issued to recipients within specified timelines
  

4. TAN Requirement

• The company must obtain a Tax Deduction and Collection Account Number (TAN) before deducting TDS
  
• TAN must be quoted in all TDS returns and correspondence with the tax department
  

5. Compliance and Penalty

• Non-compliance results in interest, late fees, and penalties under Sections 201 and 234E of the Income Tax Act
  
• Deducted TDS is treated as a trust money, and failure to remit is considered a serious violation