> ## Documentation Index
> Fetch the complete documentation index at: https://docs.fincelo.app/llms.txt
> Use this file to discover all available pages before exploring further.

# TDS Reconciliation

> Automated TDS matching against 26AS under Section 194J for India compliance.

## 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

For SaaS companies, TDS is typically deducted under:

* **Section 194JA** — 2% for technical services (most SaaS)
* **Section 194JB** — 10% for professional services / royalties

Fincelo detects the correct section from your contracts and flags any customer deducting at the wrong rate.

***

## How Reconciliation Works

1. **Customer deducts TDS** when paying your invoice (e.g. 2% on ₹1,00,000 = ₹2,000 TDS, ₹98,000 cash)
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

| 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               |