Disadvantages of TDS
1. Refund Delays: Taxpayers with excessive TDS deductions would have to wait for a government tax refund. This may cause them problems with their finances by tying up their money.
2. Compliance Errors: Errors in TDS compliance can result in fines and legal penalties, such as inaccurate computations or late filing of taxes.
3. Processing Obstacles: For tax authorities, handling a large volume of TDS data while guaranteeing compliance and precision can be difficult.
4. Frequent Amendments: Tax rules and TDS rates are subject to frequent amendments, requiring ongoing updates and education for tax authorities and taxpayers.