Tax Deducted at Source (TDS)/Tax Collected at Source (TCS):-

TDS:-

  • The concept of TDS was introduced with an aim to collect tax from the very source of income.
  • As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.
  • The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor.
  • Due Date for payment of TDS by Government Deductor is 7th day of next month (including the payments to made for the month of March) and in case of other than Government Deductor is for April to February 7th day of next month & for the month of March is 30th April.
  • Under this also includes TDS on sale of property, TDS on payment of residential house, TDS on payment made to contractor etc.

TCS:-

  • Tax Collected at Source (TCS) is tax which is collected from the buyer while selling the goods by seller.
  • Section 206C of the Income Tax Act has an exhaustive list of goods that are specified for this purpose.
  • The person from whose income tax has been collected at source would be entitled to get credit of the amount so collected on the basis of Form 26AS or TDS certificate issued by the collector.
  • Due Date for payment is 7th day of next month (including the payments to made for the month of March).

Rates:-

TDS:-

Please refer the below below link to know TDS rates

https://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?path=/charts%20%20tables/tds%20rates.htm&grp=&searchFilter=&k=&IsDlg=0

Returns:-

TDS:-

S. N. Quarter/Period Form Due Date
1 1st Quarter/ 1st April to 30th June 24Q/26Q/27Q  On or before 31st July
2 2nd Quarter/ 1st July to 30th September 24Q/26Q/27Q  On or before 31st October
3 3rd Quarter/ 1st October to 31st December 24Q/26Q/27Q  On or before 31st January
4 4th Quarter/ 1st January to 31st March 24Q/26Q/27Q  On or before 31st May

TCS:-

S. N. Quarter/Period Form Due Date
1 1st Quarter/ 1st April to 30th June 27EQ  On or before 15th July
2 2nd Quarter/ 1st July to 30th September 27EQ  On or before 15th October
3 3rd Quarter/ 1st October to 31st December 27EQ  On or before 15th January
4 4th Quarter/ 1st January to 31st March 27EQ  On or before 15th May