TDS/TCS Return in India

TCS and TDS are the two most commonly used words when we talk about taxation. In the tax domain, TDS stands for Tax Deducted at Source while TCS stands for Tax Collected at Source. While they seem almost the same, you might be wondering how they really differ. Also, when the government works on the self-assessment model of tax, why do TDS and TCS come into play?

Our Fee Structure:

  • Market Price: 5000
  • MFA Price: 2499

For One Quater TDS/TCS Return

What is TDS?

TDS or Tax Deducted at Source may be a certain amount that is reduced on a particular payment like salary, commission, rent, interest, professional fee, etc. The person making the payment deducts the tax at the source, while the person making the payment/income is susceptible to paying the tax. It reduces evasion of tax as tax is going to be collected at the time of creating or crediting of  payment

What is TCS?

Tax collected at source (TCS) is the tax collected by the seller from the buyer on the sale so that it can be deposited with the tax authorities. Section 206C of the Income Tax Act governs the goods on which the seller has to collect tax from the buyers.

Each e-TDS/TCS returns saved in CD/Pen Drive is submitted alongside a marked duplicate of the Control Chart (Form 27A).

What is the due date for the tax collector to submit TCS to the government?

The tax collected at the source has to be deposited to the credit of the Central Government within seven days from the last day of the month in which the tax is collected.

For example: If a seller collects tax from a buyer in July 2022, he has to deposit such tax to the government on or before August 7, 2022.

Rates for Tax Deducted at Source

Taxes shall be deducted at the rates laid out in the relevant provisions of the Act or within the First Schedule to the Finance Act. However, just in case of payments to non-resident individuals, the withholding rates specified under the Double Taxation Avoidance Agreement shall even be considered.

  • TDS Rates
  • Withholding Tax Rates
  • Tax Rates DTAA Vs tax Act

How to pay the tax deducted/  tax collected at the source?

The tax deducted or collected at the source shall be credited to the account of the Central Government in the following manner:

1) Electronic Mode: E-payment is mandatory

  1. a) all corporate assesses; And
  2. b) All assesses (other than a company) to whom the provisions of section 44AB of the Income-tax Act, 1961 apply.

2) Physical Mode: By presenting Challan 281 at the authorized bank branch

Tax liability just in case where TDS has already been deducted from income

On salary, TDS is deducted and supports the tax slab applicable to you. Just in the case of other income types, TDS rates are fixed and vary between 1% to 20%. Tax rates don’t support your total income. Hence, in some cases, you’ll need to face TDS on your receipts. Separately, you want to calculate your annual income by adding up the income from all sources.

Your actual liabilities are going to be calculated on the entire taxable income. From the taxes computed, you’ll claim credit for the TDS deducted on your various receipts. Deduct the tax deducted at source from your actual liabilities to understand the balance to be paid to the tax Department. You’ll even have a refund. In both cases, you’ll need to file a tax return and pay the tax due or claim a refund.

How to file TDS returns online?

To file your TDS return in India, you would like to make sure of a couple of things. They’re as follows:

  • You must have a legitimate tax write-off and Collection Account Number (TAN) and make sure that it’s registered for e-filing
  • Prepare your TDS statement using Return Preparation Utility before verifying it using File Verification Utility
  • If you would like to upload your return using DSC then you want to have a legitimate Digital Signature Certificate which is registered for e-filing.
  • Provide your key contact’s Demat account or checking account details, or make sure that his/her PAN is linked to his/her Aadhaar if you would like to upload your return using an electronic verification code.

What is a TDS Certificate?

There are two sorts of TDS certificates, Form 16 and Form 16A. Under section 203 of the tax Act, 1961, a certificate must be provided to the deductor showing the quantity deducted as tax. The deductor is susceptible to providing this type to the deductee.

For salaried class: just in case of salaried employees, employers are required to supply them with Form 16 mentioning the quantity deducted as TDS. Form 16 contains many details like computation of tax, deduction of tax, and payment of TDS. Employers will need to issue this type to their employees before May 31 of the subsequent fiscal year.

For non-salaried class: The deductor provides Form 16A to the deducted, and it contains all the small print regarding computation of tax, deduction, and payment of TDS.

Benefits of TDS

  • It ensures that folks avoid paying taxes.
  • TDS is a gentle source of revenue for the government.
  • This is far more convenient for the deductor because the tax amount payable is automatically deducted. The burden of collecting taxes on the collection agencies is significantly reduced.
  • Penalty for late filing of TCSR return and TDS return

Every person liable to complete the TDS return filing process in India or the TCS return filing process in India must comply with all the provisions of TDS and TCS quarterly return filing as if he fails to file TDS return filing, he will be liable for a penalty of an amount have to give. Two hundred rupees for every day during which the default continues.

However, such fee cannot exceed the amount of TDS or TCS, as the case may be, for which the return is being furnished. Therefore, taxpayers should ensure that they comply with all the provisions of TCS and TDS filing, such as furnishing Form 26Q TDS or Form 27Q TDS or Form 27EQ before applicable TDS and return filing of any TCS/TDS late. Last Dates of TCS Return to Avoid Penalty.

If you are wondering how to file a TDS return online or check TDS return filing status on the new income tax website, or if you are wondering about TCS on TDS Return Filing or TDS Return Filing Utility, or TCS Return Filing on Sale of Goods Want to know more, you can feel free to contact us at We will be happy to assist you with your quarterly TDS return filing or GST TCS return filing and ensure that you do not miss any TDS quarterly return due dates or TCS payment and return filing due dates.