TDS Catch - Income Solution

Improve tax credit systems and compliance management seamlessly

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TDS Catch - Income Solution

Overview

It is often challenging for taxpayers to accurately determine the eligible Tax Deducted at Source (TDS) credits owing to difficulties such as reconciling voluminous data, the time difference in booking entries in books vs entries appearing in Form 26AS, tracking multi-year credit in 26AS. Control, monitoring and blockage of working capital can also be a concern. These obstacles may lead to loss of tax credits, impacting cash flows and increasing tax risks.

Our TDS Catch - Income Solution bridges the gaps between the Accounts Receivable (AR) and tax teams. It enables seamless reconciliation processes that track, monitor and integrate data, making the organisation compliance-ready and avoiding impacts on critical cash flows.

How BDO India Can Help

BDO provides a fully automated solution which can be used by organisations independently for reconciliation on this complex area. The solution adds great value for both AR and tax teams as under:

  • AR teams can achieve process efficiency, identify pending collection, improve TDS accounting basis 3-way TDS reconciliation (solution determined TDS, TDS as per Form 26AS and TDS Receivable as per books). The solution links 26AS transactions to specific invoices as part of reconciliation process – reduces customer dependency for TDS accounting.
  • Tax teams benefit by enhanced reconciliation results of linked income and TDS reconciled with 26AS at each invoice level. This would help the tax teams to avoid Form 26AS mismatch notices from tax authorities or to appropriately respond to the said notices as well as compute advance taxes.
  • In-built TDS validation engine enables independent determination of ideal TDS deductible.
  • Invoice-wise multi-year reconciliation of both income and TDS credit as per books with Form 26AS. 

  • 3-way TDS reconciliation facilitated with auto-tagging of reasons for reconciliation and mismatch based on robust inbuilt logic. Complexities like one-many, many-one, multi-year reconciliation etc will also be handled.

  • Working Capital Management associated with TDS deduction at incorrect section or base amount. Helps to identify TDS un-booked, under-booked and over-booked associated with the invoices. 

  • In case of updated Form 26AS - Auto-identification and reconciliation of entries not reconciled in earlier Quarter but reconciled now basis revised Form 26AS/ updated entries in books.

  • Business Unit/ Department/ Location level granular invoice-wise income and TDS reconciliation.
  • Automated PAN-TAN and TAN-PAN mapping enabled for maintaining accurate customer master
  • Real-time tracking of TDS threshold limits and customer wise utilisation of lower deduction certificate (LDC) limits.

Analytical view available for TDS credits and status of reconciliation for income and TDS, system-generated / user-tagged actionables, and details of unutilised TDS credits.

Notifications to users where lower tax deduction certificates are nearing expiry. Reminders on pending actions for users.

Fetches Master and Transaction data from the customer ERP and integrates with the BDO India solution.

Reconciliation reports along with reasons for reconciliation and mismatch which can be submitted to tax authorities during assessment proceedings. Data management for applying for a lower deduction certificate.

Customer follow-up communication enabled within the solution. Entries populated with a click of a button, with auto-drafted emails and auto-built spreadsheets!

Related Insights

Meet Our Leaders

Parijat Parimal

Parijat Parimal

Partner & Sales Lead Large Accounts
Technology Product and Solutions
BDO Digital
View Bio

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