Finally, we are addressing the monster in the room that pops up for the organizations at the end of each financial year- The TDS filing. Manual TDS filing brings in endless work for the finance and HR team. Let’s find out the challenges of the process of TDS filing.
TDS stands for Tax deduction at Source, which refers to the tax collection under Income Tax Act 1961. Hence, organizations take the declaration from the employees from the very beginning of a financial year. At the end of the financial year, they receive documentary proof of the investment at the end of the year to justify the tax exemptions.
Issues of Manual TDS computation:
The process becomes way more complicated and hectic when done manually. This section will reveal a few common issues organizations face during each financial year while TDS filing.
Taxable income calculation:
Manual calculation of the taxable income is one of the most chaotic aspects of the whole process. It increases the chances of mistakes and crossing deadlines as well.
Tax exemption clauses tend to complicate the whole process further. Organizations take exemption declarations from the employees at the beginning of a financial year and take proofs of the same at the end of the year for TDS filing. Manual calculation of deduction for each employee becomes a headache.
Filing proper deductions
Filing proper deductions and tallying them with proof is also messy. There are high chances of errors, leading to several unwanted legal hassles.
Tax proof follow-ups to employees:
Collating information from sources, giving follow-ups etc., make the whole process time-taking. There are fair chances of crossing the deadline. Software is an excellent alternative for the manual collection of documents and investment proofs with tax exemptions.
Last-minute tax filing
Organizations mostly need to file accurate TDS on time. In this scenario, organizations are exposed to penalties. However, TDS filing software helps sources to avoid last-minute TDS filing.
How to solve these TDS filing issues?
Use an HRMS with dedicated TDS support for the organization. TDS filing software or HRMS with TDS filing support make the whole chaotic task super-easy. Moreover, you can’t skip the deadline because you can incur a penalty for the same.
Are you all set to simplify your TDS filing process with an intelligent solution like ConfluxHR that streamlines the process for you and automates the complicated process for utmost accuracy?