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. Its where a person is making a payment of specified nature is liable to deduct tax at the source at a prescribed rate. This ensures continuous revenue for the Government by way of Tax Deducted at 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. The payee can claim a tax credit of TDS deducted based on Form 16 or Form 26AS while filing ITR.

Sandbox provides you wide range of TDS APIs with which you can manage your payer, record salary/non-salary payments, deduct applicable TDS, add challans & file TDS return online.

What are the requirements to stay TDS Compliant?

TDS Compliance requires the following steps:

  1. Deducting TDS from payments that are liable for TDS Deduction
  2. Deduction of TDS from deductee at an appropriate rate
  3. Depositing TDS to Government before the due date
  4. Issuance of TDS Certificate by the deductor to the deductee
  5. Filing TDS Returns Quarterly

Organizations deducting TDS have to stay manage compliances for each of these steps. Failure to do so results in heavy TDS Penalties by Authorities.


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How can TDS Compliance APIs help you?

Sandbox provides TDS Compliance APIs which help you remain TDS compliant by automating several steps of the TDS Compliance process and helps you achieve automation of several TDS compliance procedures. TDS Compliance APIs majorly fall in these categories:

  1. Public API: Helps you find and look up details like TAN registration of an entity for compliance purpose
  2. Returns API: Helps you automate TDS filing procedure through systematic APIs
  3. Compliance Check API: Helps you perform Compliance Checks that involve multiple data points in a single API call

Further pages include more detailed description of each of these APIs.

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