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Overview

Fincelo reconciles TDS deducted by your customers against your 26AS statement. Mismatches are flagged automatically with a CA-ready report for each quarter.

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TDS Under Section 194J

SaaS payments are commonly deducted under one of two codes:
  • 194JA — 2%, fees for technical services
  • 194JB — 10%, professional services and royalties
Which one applies depends on the nature of the service in your contract, and the treatment of SaaS subscriptions is not uniform across customers. Confirm your position with your CA. Your customer decides the rate they deduct. Fincelo records the section you expect from each contract and flags any customer whose deduction differs from it.

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How Reconciliation Works

  1. Customer deducts TDS when paying your invoice. Example: invoice of ₹1,18,000 (₹1,00,000 + ₹18,000 GST). TDS at 2% is calculated on the ₹1,00,000 base = ₹2,000. Cash received = ₹1,16,000.
  2. Customer deposits TDS with the government and files TDS return
  3. TDS appears in your 26AS (quarterly, after customer files)
  4. Fincelo matches each 26AS entry against your invoices
  5. Mismatches flagged — wrong rate, wrong PAN, missing entries

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26AS Import

  1. Download your 26AS from incometax.gov.in → e-Filing → View Form 26AS
  2. Export as XML or JSON
  3. Fincelo → Compliance → TDS Reconciliation → Import 26AS
  4. Fincelo parses and matches automatically

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Reconciliation Report

The report shows per customer:
  • Invoices raised
  • TDS expected (at correct rate)
  • TDS appearing in 26AS
  • Variance
  • Action required
Reports → TDS Reconciliation — available in CA-ready PDF or Excel format.

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Common Issues

Fincelo flags TDS mismatches and prepares the reconciliation report. It does not file TDS returns or correct them on your customer’s behalf. Confirm treatment of any variance with your CA before acting.