TAX DEDUCTED AT SOURCE (TDS) AND TAX COLLECTED AT SOURCE (TCS)

The Indian Income Tax Act provides for chargeability of tax on the total income of a person on an annual basis. The quantum of tax determined as per the statutory provisions is payable as:-

(a) Advance Tax 
(b) Self Assessment Tax
(c) Tax Deducted at Source (TDS)
(d) Tax Collected at Source (TCS)

Tax deducted at source (TDS) and Tax collection at source (TCS), as the very names imply aim at collection of revenue at the very source of income. It is essentially an indirect method of collecting tax which combines the concepts of “pay as you earn” and “collect as it is being earned.” At the same time, to the tax payer, it distributes the incidence of tax and provides for a simple and convenient mode of payment. The deducted sum is required to be deposited to the credit of the Central Government.

TAX DEDUCTED AT SOURCE

Tax deducted at source (TDS is one of the modes of collection of taxes, by which a certain percentage of amounts are deducted by a person at the time of making/crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government account. 

TAX COLLECTED AT SOURCE

Tax collected at source (TCS) is to be collected by seller from the buyer at the time of sale of specified category of goods. The TCS rate is different for each category of goods & the TCS so collected by the seller from the buyer is to be required to be deposited with the government account.

RULE 30

 (1) All sums deducted in accordance with the provisions of Chapter XVII?B by an office of the Government shall be paid to the credit of the Central Government ?

(a) On the same day where the tax is paid without production of an income?tax challan

(b) On or before seven days from the end of the month in which the deduction is made or income?tax is due under sub?section (1A) of section 192, where tax is paid accompanied by an income?tax challan.

Tax to be deducted/collected  by Govt  Office

1 Tax deposited without challan- same day

2 Tax deposited with challan - 7th of next month

3 Tax on perquisites opt to be deposited by the employer - 7th of next month

(2) All sums deducted in accordance with the provisions of Chapter XVII?B by       dedicators other than an office of the Government shall be paid to the credit of the Central Government ?

(a) On or before 30th day of April where the income or amount is credited or paid in the month of March.

b) In any other case, on or before seven days from the end of the month in which?the deduction is made income?tax is due under sub?section (1A) of section 192. 

Tax deducted/collected by other

1 tax deductible in March - 30th April of next year 
In case of TCS                    - 7th April

2 other months & tax on perquisites opted to be deposited by employer - 7th of next month

(3) Not withstanding anything contained in sub?rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table:?

Sr No

Quarter ended On Date of payment

1. 30th June - 7th July

2. 30the September - 7th October

3. 31st December - 7th January

4 31st March - 30Th April

Person required to file ETDS Return Filing due Dates

Following person are liable to file ETDS/ETCS return. 

1. All Government department/office or

2. All companies.

3. All person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

4 The number of deduces’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,