A TDS Audit is a specialized review of an entity’s compliance with the provisions of Tax Deduction at Source. Since April 1, 2026, all new transactions are governed by the Income Tax Act, 2025, which has consolidated the previous web of over 60 old sections (192 to 194T) into a simplified, renumbered structure. However, the fundamental rule remains: if you pay for a service or goods, you must "snip" a small portion for the government before paying the vendor.
At Ruchi Anand & Associates, we specialize in identifying "short-deductions" and "non-deductions." In 2026, the Income Tax portal uses advanced AI to automatically cross-reference your GSTR-2B (purchases) with your TDS Returns. If you claim an expense in GST but don't deduct TDS on it, a "Notice for Default" is generated almost instantly. We help you stay ahead of these automated triggers by ensuring your accounting logic matches the new 2025 Act.
The most critical part of a TDS audit today is ensuring you are using the correct legislative framework. The transition requires a dual-track compliance mind-set:
The government's "stick" for TDS defaults in 2026 is heavier than ever due to automated tracking:
To ensure your TDS records are "Clean," keep the following ready:
Specifically for Rent, Professional Fees, Contractors, and Partner Remuneration.
Receipts (now under new payment codes) for all tax deposits.
Proof of filing on the new 2026 portal.
Including PAN and "Status" (Individual/Company/HUF).
Certificates issued to employees (formerly Form 16) and vendors (formerly Form 16A).
Showing tax calculations based on the Tax Year 2026-27 regimes.
No. As per ongoing CBDT guidelines, TDS is deducted only on the basic value of the service, excluding the GST amount, provided the GST is shown separately on the invoice.
It remains a critical provision requiring buyers with a turnover exceeding ₹10 Crore to deduct 0.1% TDS on the purchase of goods exceeding ₹50 Lakh from a single seller. In 2026, this is one of the highest-focus areas for “missed deductions.”
Yes, you can file a “Correction Statement.” However, under the Income Tax Act, 2025, the correction window has been reduced to two years, and frequent corrections may trigger an automated risk-profile flag.
Starting April 2026, the government has replaced the term “Assessment Year” with a single concept called Tax Year. Income earned in Tax Year 2026-27 will now be filed and assessed as Tax Year 2027-28, simplifying the nomenclature.
Yes. Under Section 194T, a firm must deduct 10% TDS if the aggregate of salary, interest, bonus, or commission paid to a partner exceeds ₹20,000 in a financial year.
TDS is an "Account-by-Account" battle. At Ruchi Anand & Associates, we don't just review your returns; we review your General Ledger. Our CAs look for "hidden" TDS liabilities in accounts like "Office Maintenance," "Software Licenses," or "Reimbursements" where companies often forget to deduct tax.
We help you automate your TDS checks using our proprietary reconciliation tools, ensuring that your Form 26AS/AIS matches your books perfectly. With Ruchi Anand & Associates, your TDS compliance moves from a source of stress to a streamlined, automated process that protects your company’s cash flow and professional reputation.
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