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Tax Deducted at Source (TDS)

Tax Deducted at Source (TDS) is a mechanism for collecting Income Tax at the time a payment is made. It operates on the principle of “pay as you earn”, where the person responsible for making a specified payment deducts tax at a prescribed rate before releasing the amount to the recipient and deposits it with the Government. TDS applies to various types of payments such as salary, professional fees, rent, interest, commissions, and contractual payments, helping ensure timely tax collection and reduced tax evasion. Staying TDS-compliant involves multiple ongoing obligations. Businesses responsible for deducting TDS must:
  • Deduct tax at the correct rate on applicable payments
  • Deposit the deducted TDS with the Government within prescribed due dates
  • Issue TDS certificates (such as Form 16 or Form 16A) to deductees
  • File quarterly TDS returns accurately and on time
Failure to comply with any of these steps can result in interest, penalties, and notices from tax authorities, making manual TDS management complex and high-risk especially for businesses handling large volumes of transactions.

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API Categories

Compliance APIs

Compliance APIs help businesses meet statutory TDS requirements by enabling:

Analytics APIs

Analytics APIs leverage business data to provide actionable insights, including:
  • Reconciliation of TDS credits
  • Identification of discrepancies that may trigger potential notices
  • Visibility into overall TDS compliance status

Report API

Prepare TDS returns for volumetric deductions through these APIs, easily generating TXT.

Calculator API

Determine the deduction amount on Salary, Non-Salary payments through our TDS Calculator APIs.

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How Sandbox Simplifies TDS Compliance

Sandbox provides a comprehensive suite of TDS APIs that automate the entire TDS lifecycle, from calculation to return filing and certificate management allowing businesses to stay compliant without operational overhead.