TCS & TDS Payments & Return filing Simplified with us; get the working done by experienced Chartered Accountants. Contact us and perform the first two steps, our team will do the rest.
Steps involved in TCS and TDS
- Fill the query form
- Provide the details required
- Preparation of return as per details provided
- Pre-filing verification
- Filing
- Acknowledgment in your inbox
Tax collected at source (TCS) is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.
TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.
Comparison of TDS and TCS
| Subject | TDS | TCS |
| Definition | Tax deducted on payments made by companies and individuals if the payment exceeds a threshold. | Tax collected by a seller when selling goods to a buyer |
| What does it apply | TDS deductions are made on payments including salary, rent, brokerage, professional fees, commission, interest etc. | TCS deductions are made on the sale of goods such as scrap, timber, mineral wood, etc. |
| When does it apply | On payments above a specified limit | On the sale of certain goods (barring those used for manufacturing or production) |
| Who does it apply | A person making a specified payment over and above a certain limit can deduct TDS according to the Income Tax Act 1961 | A person selling specific goods can collect TCS according to the Income Tax Act, 1961 |
Different Items where TCS is applicable
| Type of Goods |
| Liquor of alcoholic nature, made for consumption by humans |
| Timber wood under a forest leased |
| Tendu leaves |
| Timber wood by any other mode than forest leased |
| A forest produce other than Tendu leaves and timber |
| Scrap |
| Minerals like lignite, coal and iron ore |
| Bullion that exceeds over Rs. 2 lakhs/ Jewellery that exceeds over Rs. 5 lakhs |
| Purchase of Motor vehicle exceeding Rs. 10 Lakhs |
| Parking lot, Toll Plaza and Mining and Quarrying |
Important Dates for TCS
| Subject | Due Date |
| Date for TCS Payment | 7th of the following month of transection |
| Date for Quarterly Return | 15th of the month following the quarter |
Important Dates for TDS
| Subject | Due Date |
| Date for TDS payment | 7th of the following month of transection, For the month of March due date is 30th April. |
| Date for Quarterly Return | 31st of the month following the quarter |
Non filing or late filing
In case you have not deposited TDS/TCS by the correct date, the following penalties are applicable:
- Late filing fee (if you do not file returns by the deadline)
- Interest (if you do not deposit the TDS/TCS amount in time)
- Penalty (if TDS/TCS is not filed within one year of the due date)
The Income Tax gives exemption from TDS in the following cases
- For those who are not required to file the return of Income Under Section 139
- For those assesse who give a declaration under Section 15G/15H at the beginning of the Financial year and verified by the deductor according to the rules laid down in this regard.
- For those cases which are specifically exempted under sub section 3 of Section 194A of the Income Tax Act.
- For those cases who obtain certificate under Section 197 of the Income Tax Act from the assessing officer. This certificate instructs the deductor not to deduct tax on that specified assessee or to deduct tax at a lower rate or as per the conditions laid down in the certificate. The validity of the certificate will also be specified by the Income Tax Officer
The Income Tax gives exemption from TCS in the following cases
- When the eligible goods are used for personal consumption
- The purchaser buys the goods for manufacturing, processing or production and not for the purpose of trading of those goods.
Certificates
TDS / TCS certificates have to be issued by a person deducting TDS / TCS.
Contents of the Certificates
The TDS certificate to be issued by the deductor/collector contains the following details:
- PAN of the deductee
- TAN of the deductor/collector
- Challan Identification Number (CIN)
- Receipt number of the relevant quarterly statement of TDS
TCS certificate contains the following details
- Name of the Seller and Buyer
- TAN of the seller
- PAN of both seller and buyer
- Total tax collected by the seller
- Date of collection
- The rate of Tax applied
Dates for TDS Certificates
| Subject | Date for generating certificate |
| In case of Salary | By 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted |
| In any other case | Within 15 days from the due date for furnishing the statement /return of tax deducted at source |
Dates for TCS Certificates
| Quarter Ending | Date for generating certificate |
| For the quarter ending on 30th June | 30th July |
| For the quarter ending on 30th September | 30th October |
| For the quarter ending on 31st December | 30th January |
| For the quarter ending on 31st March | 30th May |
Details Required for TCS/TDS
- PAN Cards
- TAN No.
- Transection details
- Tax Challan (if paid)