The problem we were solving
Managing TDS for 200+ clients manually meant collecting salary registers, vendor payment data, and contractor invoices every quarter from each client, computing TDS on each payment category, preparing challans, making payments, and then filing 24Q and 26Q returns. Each client took 3 to 4 hours per quarter. Across 200 clients, that was 600 to 800 hours of repetitive work every three months. Errors crept in. Deadlines were tight. We knew we needed a different approach.
Step one: standardising how clients send us data
The first problem was not technical. It was data. Every client sent data differently. Some sent Excel sheets, some sent Tally exports, some sent PDFs, and some sent WhatsApp photos of salary slips. We built a simple client portal with a structured upload template. Clients fill in one standardised spreadsheet per quarter. Salary data, vendor payments, rent payments, and professional fees all go into specific columns. This alone removed 60 percent of the manual effort on our end.
Step two: automated TDS computation
Once the data was in a standard format, we wrote a computation engine that applies the correct TDS rate based on payment category, checks whether PAN is available (and applies the higher rate if not), computes surcharge and cess where applicable, and flags payments below the threshold limit where TDS is not required. This runs in seconds and produces a computation sheet that our CAs review and sign off on, rather than compute from scratch.
Step three: challan generation and payment tracking
We built a dashboard that generates payment challans pre-filled with the correct amounts, TAN, and payment category. Once payment is confirmed by the client, the system marks the challan as paid and records the BSR code and challan number, which are required for the return filing. Previously this reconciliation was done manually from bank statements. Now it takes under two minutes per client.
Step four: return preparation and filing
With computation data and challan details in the system, we generate the FVU-compatible file for 24Q and 26Q automatically. Our CAs do a final review of the file before it is uploaded to the TRACES portal. What used to take 3 to 4 hours per client now takes under 45 minutes, most of which is the CA review. The actual data work is under 10 minutes.
What this means for our clients
Faster turnaround, fewer errors, and real-time visibility. Clients can log in and see the status of their TDS return: data received, computation done, filed, acknowledgment available. They get an automated WhatsApp message when their return is filed. The entire process is documented and auditable. For clients who previously got a phone call saying their return was done, this is a significant upgrade in experience.
What we learned
The biggest lesson was that automation starts with data standardisation, not software. You cannot automate chaos. Once the input format is clean and consistent, the computation and filing steps are straightforward to automate. The second lesson: involve your CAs in building the tools. They know every edge case, every exception, and every regulatory nuance that a developer alone would miss. The best finance automation is built by people who understand both the software and the compliance.
TDS filing
Let us handle your TDS filing end to end.
Our automated system means faster filing, fewer errors, and real-time status updates for every quarterly return.