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Quick Answer: Understanding TDS on school fees is crucial for school owners and principals in Bhubaneswar. This guide covers the basics, including how TDS is calculated, who is liable, and how to comply with the latest regulations. Plus, discover how TACHY SCHOOL ERP can streamline your school’s financial management and more.
Tax Deducted at Source (TDS) is a method of tax collection where the payer deducts the tax at the time of making certain payments, including school fees. For schools in Bhubaneswar, understanding and complying with TDS regulations is essential to avoid legal issues. TDS on school fees is generally applicable when the total fees exceed a certain threshold.
TDS on school fees is calculated based on the total fees collected by the school. As of 2026, the threshold for TDS deduction is Rs. 2,50,000 per financial year. If the total fees collected from a single student exceed this amount, the school is required to deduct TDS at the rate of 1%. For example, if a student pays Rs. 3,00,000 in fees, the TDS amount would be Rs. 3,000 (1% of Rs. 3,00,000).
The school is liable for deducting TDS on school fees when the total fees exceed the threshold. It is the responsibility of the school administration to ensure that TDS is deducted and paid to the government within the specified time frame. Failure to comply can result in penalties and legal consequences.
TACHY SCHOOL ERP is a comprehensive school management software designed to streamline various administrative tasks, including financial management. Here’s how it can help with TDS compliance:
| Feature | Description |
|---|---|
| Fee Automation | Automated fee tracking and TDS deduction. |
| Face Recognition Attendance | Advanced biometric attendance tracking. |
| Exams and Report Cards | Comprehensive exam management and report card generation. |
| Transport Tracking | Real-time tracking of school buses. |
| HR & Payroll | Efficient HR management and payroll processing. |
| Parent App | Seamless communication with parents. |
| Free Data Migration and Training | Ensure a smooth transition with free data migration and training. |
Starting at Rs. 49/student/year, TACHY SCHOOL ERP offers 25+ modules to meet all your school’s needs. Go-live in just 3-7 days.
The TDS threshold for school fees in 2026 is Rs. 2,50,000 per financial year. If the total fees collected from a single student exceed this amount, TDS at 1% must be deducted.
The school is responsible for filing TDS returns for school fees. Quarterly returns must be filed with the Income Tax Department.
Yes, TACHY SCHOOL ERP can help with TDS compliance for CBSE, ICSE, and State Board schools. It automates the process of tracking fees, calculating TDS, and generating TDS certificates, ensuring compliance with the latest regulations.
Understanding and complying with TDS on school fees is essential for school owners and principals in Bhubaneswar. TACHY SCHOOL ERP can significantly simplify this process, ensuring accuracy and compliance. To learn more about how TACHY SCHOOL ERP can benefit your school, visit school ERP in Bhubaneswar or explore all our services at all locations. For a free demo or to get started, fill out the form at https://tachy.in/leadform.php or WhatsApp us at +91 84348 01033.
Published 2026-10-07 · © 2026 TACHY SCHOOL ERP · School ERP in Bhubaneswar