TDS Compliance Policy
Last Updated: April 23, 2026
At The Equibudx (operated by Startworks Technologies Private Limited), we are committed to maintaining the highest standards of financial transparency and statutory compliance. This Tax Deducted at Source (TDS) Policy explains our obligations and procedures regarding the deduction of income tax on payouts made to Service Providers (Coaches) on our platform.
1. What is TDS?
Tax Deducted at Source (TDS) is a system introduced by the Government of India where the person responsible for making specified payments is required to deduct tax at a prescribed rate and deposit it with the Income Tax Department. For our Service Providers, this ensures that a portion of their income tax is paid in advance to the government.
2. Why We Collect TDS?
The Equibudx is legally mandated under the **Income Tax Act, 1961** to deduct tax on professional fees and commissions paid to Service Providers. Specifically, under **Section 194J**, payments made for professional or technical services are subject to TDS once they exceed a specific annual threshold.
- Statutory Compliance: Failure to deduct TDS can result in heavy penalties and legal action against the platform.
- Revenue Monitoring: It helps the government track professional income and ensure fair tax collection.
- Coach Accountability: It ensures that Service Providers are automatically compliant with basic advance tax requirements.
3. Threshold and Applicable Rates
TDS is not deducted on every rupee earned. It only triggers once your total taxable earnings on the platform cross the statutory limit for the financial year.
- Annual Threshold: ₹50,000Deductions only begin after your cumulative net earnings in a single Financial Year exceed this amount.
- Standard Rate: 10% (With PAN)Applied if you have a verified PAN and have completed your KYC on the platform.
- Cautionary Rate: 20% (Without PAN)Applied under Section 206AA if a valid PAN is not provided or verified.
4. What We Do With the Deducted Tax?
Once TDS is deducted from your payout, The Equibudx follows a strict regulatory workflow:
- Monthly Deposit: The deducted amount is deposited with the Central Government by the 7th of the following month.
- Quarterly Filing: We file quarterly TDS returns (Form 26Q) with the Income Tax Department, linking the deduction to your specific PAN.
- Issuance of Certificates: After filing, we issue Form 16A (TDS Certificate) on a quarterly basis. You can use this certificate to claim tax credit when filing your personal Income Tax Returns (ITR).
5. Your Responsibilities
To ensure smooth tax processing and to avoid the higher 20% deduction rate, Service Providers must:
- Ensure their Permanent Account Number (PAN) is correctly updated in the Coach Dashboard.
- Complete their KYC Verification before crossing the ₹50,000 threshold.
- Verify their quarterly deductions in their Form 26AS on the Income Tax e-filing portal.
6. Contact for Tax Queries
If you have any questions regarding your TDS deductions, Form 16A issuance, or threshold calculations, please contact our finance compliance team:
- Email: support@equibudx.com
- Subject Line: TDS Compliance Query - [Your Coach ID]