What is TDS?

Tax Deducted at Source (TDS) is an indirect method of collecting Income Tax. TDS is based on the principle of “Pay as you earn” which is beneficial for both the Government and the taxpayer. It is where a person making a payment of specified nature is liable to deduct tax at a prescribed rate. This ensures continuous revenue for the Government by way of Tax Deducted at the Source.

The Payer making a payment is also responsible to deposit TDS with the Income Tax Department within a specified date and file a TDS Return. Once filed, the deposited amount will be shown in the Payee's Form 26AS which they can then use to claim tax credits when filing ITR.

However, staying TDS compliant can be a hassle for businesses, as they are required to :

1. Deduct TDS from payments that are liable for TDS Deduction at an appropriate rate.
2. Deposit TDS to Government before the due date.
3. File TDS Returns on a Quarterly basis.
4. Issue a TDS Certificate by the deductor to the deductee.

Organizations deducting TDS have to remain compliant with each of the steps. Failure to do so results in TDS Penalties by Authorities. Sandbox provides TDS Compliance APIs to help you automate end-to-end TDS compliance.

Sandbox uses RPA to facilitate the filing of TDS returns through TIN FC

Available TDS Compliance APIs

1. E-File TDS Return API: Helps you automate the TDS filing procedure through systematic APIs
2. 206AB Compliance Check API: Helps you check section 206 AB & CCA compliance to determine if deductee is compliant & deduct TDS at applicable rate

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Pay TDS through our APIs

We offer Tax-Payment APIs which can be integrated into your workflow and help you pay TDS seamlessly.