Does Consolidating TDS Entries Risk Tax Scrutiny?
This query is : Resolved
Quick Summary
Sahil Nagpal
(Querist)
08 July 2025
When filing TDS returns under Section 194Q, some businesses combine multiple purchases from a single seller into one entry for simplicity. For example, a car showroom might consolidate monthly purchases from a supplier like Hyundai, totaling ₹10 crore, into a single transaction.
The Concern: While this streamlines reporting, could it trigger questions from the tax department about the source of funds? Individual entries clearly show the rotational nature of funds (sales revenue funding new purchases), but a single large entry might raise red flags about the origin of the ₹10 crore.
The Concern: While this streamlines reporting, could it trigger questions from the tax department about the source of funds? Individual entries clearly show the rotational nature of funds (sales revenue funding new purchases), but a single large entry might raise red flags about the origin of the ₹10 crore.
Dhirajlal Rambhia
(Expert)
08 July 2025
As such no. General query u/s. 133 may be raised (exceptionally), which can be easily explained by statements.
Dhirajlal Rambhia
(Expert)
26 September 2025
Good luck...
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