Overview
Fincelo reconciles TDS deducted by your customers against your 26AS statement. Mismatches are flagged automatically with a CA-ready report for each quarter.TDS Under Section 194J
For SaaS companies, TDS is typically deducted under:- Section 194JA — 2% for technical services (most SaaS)
- Section 194JB — 10% for professional services / royalties
How Reconciliation Works
- Customer deducts TDS when paying your invoice (e.g. 2% on ₹1,00,000 = ₹2,000 TDS, ₹98,000 cash)
- Customer deposits TDS with the government and files TDS return
- TDS appears in your 26AS (quarterly, after customer files)
- Fincelo matches each 26AS entry against your invoices
- Mismatches flagged — wrong rate, wrong PAN, missing entries
26AS Import
- Download your 26AS from incometax.gov.in → e-Filing → View Form 26AS
- Export as XML or JSON
- Fincelo → Compliance → TDS Reconciliation → Import 26AS
- Fincelo parses and matches automatically
Reconciliation Report
The report shows per customer:- Invoices raised
- TDS expected (at correct rate)
- TDS appearing in 26AS
- Variance
- Action required
Common Issues
| Issue | Cause | Fix |
|---|---|---|
| TDS not in 26AS | Customer hasn’t filed TDS return yet | Wait for next quarter; follow up with customer |
| Wrong rate deducted | Customer used 10% instead of 2% | Issue revised invoice; request revised TDS certificate |
| TDS on wrong PAN | Customer used old PAN | Share updated PAN; request correction in next filing |
| TDS deducted on GST amount | Not allowed — TDS on base amount only | Raise credit note for excess TDS claimed |