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Tax & Compliance·8 min read
TDS Returns for Startups: Deduction, Deposit & Quarterly Filing
Deduct, deposit, and file 24Q/26Q on schedule—so contractors trust you and your ITR matches Form 26AS.
May 22, 2025
What you'll take away
- Section 192 for salary; 194J for consultants; 194C for contractors.
- Deposit by 7th of next month; file quarterly returns.
- Issue Form 16/16A or vendors cannot claim credit.
- Pelago runs payroll + vendor TDS end-to-end.
Sections startups use weekly
- 192 — salary TDS via payroll.
- 194J — professional fees (10% typical).
- 194C — contractors (1%/2% based on payee).
- 194I — rent on office (10% building, 2% equipment).
Without PAN, higher rates apply (206AA).
Monthly rhythm
- Deduct TDS when invoice is paid or due (earlier).
- Pay challan by 7th (April challan for March).
- Track cumulative thresholds per section annually.
Paying consultants or payroll?
TDS calculation, challans, and quarterly returns handled for you.
Setup TDS complianceQuarterly returns
Form 24Q for salary; Form 26Q for non-salary deductees.
Issue Form 16 to employees by 15 June; Form 16A to vendors quarterly.
Founder tip: Never label employees as consultants to skip PF—TDS and labour law still expose you.
Pelago TDS retainer
Payroll structuring, challan payments, return filing, and mismatch resolution before your tax audit.