CAknowledge.com bell-icon
  • Home
  • Celebrity
  • Athletes
  • Business
  • Politicians
  • Articles
  • Stocks
  • News
CS
CMA
CA Final
IPCC
Income Tax
Sales Tax
CS Professional
CS Executive
CS Foundation
CMA Final
CMA Inter
CMA Foundation
CPT
Jobs
Tally
Stock market
Investment
Banking
SEBI
FRM
Accounting
Interview
GST
Insurance
EPF & UAN
Economy
Company Law
Judiciary
Indirect Tax
Money
Word Excel Formats
News
Finance
Training
NPO
Auto
HR Formats
Key Difference
Net Wealth
6hip
Featured
Taxation
Exam Form
CA Foundation
Audit
Question Papers
UGC NET
Syllabus
CBSE
Career
IAS Interview
Firms
CA Firms
CFA
Hindi
Central Government Scheme
Rajasthan Govt Scheme
Press Release
CS Firms
CMA Firms
Technology
FAQ
GST Registration
GST Rates
CGST
GST Return
GST Sections
Notifications
GST in Hindi
SGST
E-Way Bill
Goods and Service Tax
IGST
UTGST
Medical
CSEET
Result
Cryptocurrency
Health
Diabetes
  1. Home >
  2. Articles >
  3. Income Tax
  4.   >
  5. Tax Collected At Source

TCS: Intro, TCS Rates 2021-22, Payment, Return, Due Dates

TCS (Tax Collected at Source) are one of the mode through which government gets revenue instantly at the time of generation of Income. TCS Payment 2021.

CA Ridhi Dhoot

Last Updated : September 18, 2023

whatsapp-color google-news
TCS: Intro, TCS Rates 2021-22, Payment, Return, Due Dates
Content in this Article

Tax Collected at Source, Latest TCS Rates in India, TCS means collection of tax at source by the seller (collector) from the buyer (collectee/payee) of the goods (specified u/s 206C of Income-tax Act, 1961, like timber obtained under forest lease, scrap, any other forest produce not being timber or tendu leaves etc.,).

For e.g. if purchase value of goods is Rs.10,000/-, the buyer will pay an amount of Rs.10,000/- + X (X being the value of TCS as prescribed under Income-tax Act, 1961) to the seller. The seller will deposit the tax collected at source (TCS) at any of the designated branches of the authorised banks. Now you can scroll down below n check more details related to Tax Collected at Source, Latest TCS Rates in India

Tax Collected at Source

TCS (Tax Collected at Source) are one of the mode through which government gets revenue instantly at the time of generation of Income. TDS/TCS provisions play a very important role in maintenance of liquidity of fund to the Government of India. Government gets approximately more than 40 per cent revenue in current fiscal year from TDS and TCS. It helps Government in minimizing tax evasion. It make cautious to tax payers while calculating his annual income and get credit of TDS/TCS as reflected in form 26AS or TDS certificate issued by deductor. It is important for tax professionals because they have to execute and complete the whole process of TDS provisions on behalf of clients

Just like TDS, Income Tax also includes TCS within its ambit. In this article, we will study about TDS versus TCS & all the aspects related to TCS.

Difference between TDS & TCS:

Tax Deducted at SourceTax Collected at Source
Generally,  tax  is  required  to be deducted at the time of credit  to the  account  of  the  payee  or  at the  time  of  payment, whichever is earlier.Generally, tax is required to be collected at the source at the time of debiting the amount payable by the buyer of certain goods to the account of the buyer or at the time of receipt of such amount from the said buyer, whichever is earlier.

Provision for TCS

Profits and gains from the business of trading, grants of lease or license, sale of motor vehicle under section 206C as Income tax collected at source i.e. TCS

  • Every person , being a seller shall at the time of debiting of the amount payable by the buyer to the account of buyer or at the time of receipt of such amount from the said buyer, whichever is earlier, collect from the buyer of such amount as income tax.
  • TCS shall not be collected if buyer declares that purchase of goods shall be utilized for the purpose of manufacture, processing or producing articles or things.

TCS Rate Chart for FY 2021-22 (AY 2022-23)

A. CATEGORY - 1: SECTION 206C (1)

TCS Deposit Challan Code/DescriptionTCS Rate
6CA - Alcoholic Liquor for Human Consumption1%
6CB - Timber obtained under a forest lease2.5%
6CC - Timber obtained by any mode other than under a forest lease2.5%
6CD - Any other forest produce not being timber or tendu leaves2.5%
6CE - Scrap1%
6CI - Tendu Leaves5%
6CJ - Minerals, being coal or lignite or iron ore1%
6CK - Bullion & Jewelry—

B. CATEGORY - 2: SECTION 206C (1C)

TCS Deposit Challan Code/DescriptionTCS Rate
6CF - Parking Lot2%
6CG - Toll Plaza2%
6CH - Mining & Quarrying2%

C. CATEGORY - 3: SECTION 206C (1F)

TCS Deposit Challan Code/DescriptionTCS Rate
6CL - Motor Vehicle (any mode of payment)1%

D. CATEGORY - 4: SECTION 206C (1E)

TCS Deposit Challan Code/DescriptionTCS Rate
6CM - Cash Sale of any goods (other than bullion/jewelry)—
6CN - Providing any services (other than Ch-XVII-B)—

E. CATEGORY - 5: SECTION 206C (1G)

TCS Deposit Challan Code/DescriptionTCS Rate
6CO - Overseas Tour Program Package5%   TCS in case of Non-Furnishing of PAN/Aadhaar: 10%
6CP - Remittance under LRS for education loan taken from financial institution mentioned under section 80E0.50%
6CQ - Remittance under LRS (for purpose other than for purchase of overseas tour package or for education loan taken from financial institution mentioned under section 80E)5%     TCS in case of Non-Furnishing of PAN/Aadhaar: 10%

F. CATEGORY - 6: SECTION 206C (1H)

TCS Deposit Challan Code/DescriptionTCS Rate
6CR - Sale of Goods  0.10% TCS in case of Non-Furnishing of PAN/Aadhaar:1%

G. CATEGORY - 7: SECTION 206CCA

TCS Deposit Challan Code/DescriptionTCS Rate
  Higher Rate of TCS for Non Filer of ITR  —

Note: Proposed section 206CCA of the Act would apply on any sum or amount received by a person (herein referred to as collectee) from a specified person. The proposed TCS rate in this section is higher of the following rates –

  • Twice the rate specified in the relevant provision of the Act; or
  • The rate of 5%.

Time of Deposit of TCS

By an office of the Govt. and tax is paid without production of income tax challan.TCS: On the same day on which tax is deducted
By an office of Govt. and tax is paid accompanied by Income tax challan (ITNS281)On or before 7 days from the end of month in which tax is deducted
Tax is deducted/ collected by a person other than office of GovernmentTCS: On or before 7 days from the end of month in which tax is collected.

TCS Payment

  • TCS should be deposit in Challan No. 281
  • TCS will have to deposit through internet banking.
  • Indicate accurate PAN in challan
  • Minor Head of Challan - 200 : TDS payable by tax payer
  • Minor Head of Challan - 400: TDS Regular assessment raised by Income Tax Department.
  • Amount of TDS, Interest, Late filing fee, penalty etc, should be separately shown while filing the challan
  • Note down BSR code, Challan serial number, Date of payment, and amount of challan. This will help you in case challan is misplaced.

TCS Return forms to be submitted Quarterly

Tax Collection (TCS)In form No. 27EQ

Due Date of Submission of TCS Quarterly Return

Quarter endingDue date of TCS Return
June 30July 15
September 30October 15
December 31January 15
March 31May 15

MODE OF FURNISHING QUATERLY RETURNS OF TDS/TCS

  • In case where deductor or collector are an office of Govt. or Principal officer of a company or is person who is required to get his account audited u/s 44AB in immediately preceding financial year or when the numbers of deductee’s/collectee’s are more than 20, then TDS/TCS quarterly return shall be submitted electronically.
  • Other than above, any other deductor/collctor can submit TDS/TCS return either in paper format or electronically.
  • Electronic return can be uploaded with Digital signature or verification of form 27A electronically
  • Electronic return will be uploaded in FVU file
  • FVU file can be generated through e TDS/TCS RPU (return prepare utility) which is available in https://www.tin-nsdl.com/services/etds-etcs/etds-rpu.html
  • In every quarter download latest e TDS/TCS RPU
  • In e TDS/TCS return details of challan paid [ i.e. TDS amount, Interest, Fee, Other/penalty, BSR code, Challan serial No., Date of challan, Minor head] , details of deductee/collectee has to fill like section under which payment made, PAN, Name, Date of payment, Date deposit of TDS/TCS, amount paid, amount of TDS/TCS, Rate of TDS/TCS etc,.

Time limit for issuing TCS certificate

For the Quarter endingForm No 27D
June 30July 30
September 30October 30
December 31January 30
March 31May 30

Some Important Notes:

  • However, no collection of tax shall be made in the case of a resident buyer, if such buyer furnishes to the person responsible for collecting tax, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that goods referred in the above table are to be utilized for the purpose of manufacturing, processing or producing articles or things or for the purposes of generation of power and not for the purpose of trading.
  • Section 206C (1D) provides that tax is to be collected at source@1% of sale consideration by the seller from the buyer, where the sale of jewellery or bullion is in cash and the sale consideration –
    • For jewellery exceeds 5 lakhs,
    • & for bullion exceeds Rs. 2 lakhs

Advertisement

In such cases, tax has to be collected at source by the seller from the buyer irrespective of the purpose of its use, whether for manufacturing or trading or for personal use.

The purpose of this requirement is to reduce the quantum of cash transaction in bullion and jewellery sector and also to curb the flow of unaccounted money in the trading system of bullion and jewellery.

A person collecting tax in accordance with the provisions of the section is vested with the responsibility of preparing such statements for such periods as may be prescribed after paying the tax collected to the credit of the Central Government within the prescribed time.

The statement should be delivered or caused to be delivered to the prescribed income-tax authority or the person authorized by such authority. The statement should be in the prescribed form and verified in the prescribed manner. The statement should set forth the prescribed particulars and should be filed within such time as may be  prescribed.

CONSEQUANCE ON DEFAULT IN TDS / TCS PROVISIONS

Failure to deduct and pay tax deducted at source under section 192 to 196C [Sec 201(1A)]
  • Tax with interest shall be payable @ 1% from the date on which actually deductible and to the date on which actually deducted.
  • @ 1.5% from the date on which tax was actually deducted and to the date on which tax is actually paid.
Failure to collect tax at source and paid.[ Sec 206C (7)]Tax with interest @ 1% per month
Failure in furnish TDS/TCS return within stipulated time [U/S 234E]Rs. 200 per day and shall not exceed the amount of tax deducted/collected.
Penalty for failure to furnish quarterly TDS/TCS return [271H]Rs. 10000/- to Rs. 100000/

Recommended Articles

  • PAN Card is Mandatory on Following Services
  • Is Stamp duty to be made on Share Certificate?
  • Taxation of dividend – How Does it works?
  • Tax Calculation of AOP (Association of Persons)
  • Offences and Prosecutions under the Income Tax Act
  • Section 44AE of the Income Tax Act 1961

Share with friends

Share on Facebook Twitter WhatsApp
Latest Articles

CA Final Result Nov 2023 (Expected Date) Pass Percentage Toppers

Nella Rose Net Worth 2023: Real Name Parents height and Age

Matthew Wolfenden Net Worth 2023: Wife Deaf Family & Height

Corey Perry Net Worth 2023: Salary Contract Wife and Age

Luis Severino Net Worth 2023: Contract Salary Injury & Wife

Curt Cignetti Net Worth 2023: Salary Contract Family and Age

Joni Ernst Net Worth 2023: News Husband Height & Committees

Sutton Stracke Net Worth 2023: Husband Age Kids & Salary

caknowledge.com
Follow us on
facebook twitter instagram linkedin
Have a query?
Support
Useful Links
SiteMap
Privacy Policy
About CAKnowledge
Contact Us
Advertise With Us
POST TYPES
Celebrity
Net Wealth
Hollywood
YouTuber
Singer
Actors
Bollywood
Directors
Journalist
Comedian
Authors
Celebrity Chefs
Models
Richest DJs
Rappers
Lawyers
Music Artist
Women
History
TV Personality
Sheikh
Actress
Athletes
Sports
Cricketer
Tennis Players
Hockey
Football Player
Olympians
Wrestlers
Baseball Players
Kabaddi
Race Car Drivers
Golfers
Badminton
Boxers
NBA Players
NFL Players
Racing Drivers
Business
Corporate
CEOs
Designers
Startup
Entreprenuer
Politicians
Congress
Presidents
BJP
Royals
Republicans
Democrats
Politics
Stocks
Companies
TV Personality
  • Tucker Carlson Net Worth
  • Emily Compagno Net Worth
  • Chuck Todd Net Worth
  • Kris Jenner Net Worth
  • Anderson Cooper Net Worth
Politician
  • Nancy Pelosi Net Worth
  • Hunter Biden Net Worth
  • Justin Trudeau Net Worth
  • AOC Net Worth
  • Joe Biden Net Worth
  • Ron DeSantis Net Worth
  • Zelensky Net Worth
  • Vladimir Putin Net Worth
  • Donald Trump Net Worth
  • Jen Psaki Net Worth
  • Kevin McCarthy Net Worth
  • Elizabeth Warren Net Worth
History
  • Hitler Net Worth
  • JFK Net Worth
  • Napoleon Net Worth
  • Pablo Escobar Net Worth
  • Genghis Khan Net Worth
  • Mansa Musa Net Worth
  • Rothschild Family Net Worth
  • Alexander the Great Net Worth
YouTuber
  • Blippi Net Worth
  • Jake Paul Net Worth
  • Logan Paul Net Worth
  • MrBeast Net Worth
  • PewDiePie Net Worth
  • Adin Ross Net Worth
  • KSI Net Worth
  • Kai Cenat Net Worth
Rappers
  • Jay-Z Net Worth
  • Sean Combs Net Worth
  • Dr. Dre Net Worth
  • Kanye West Net Worth
  • Eminem Net Worth
  • Drake Net Worth
  • Master P Net Worth
  • Ice Cube Net Worth
  • Snoop Dogg Net Worth
  • Nicki Minaj Net Worth
  • Travis Scott Net Worth
  • Cardi B Net Worth
  • 50 Cent Net Worth
Boxers
  • Floyd Mayweather Net Worth
  • Andrew Tate Net Worth
  • Bruce Lee Net Worth
  • Tristan Tate Net Worth
  • Mike Tyson Net Worth
  • George Foreman Net Worth
  • Tyson Fury Net Worth
  • Miesha Tate Net Worth
Actress
  • Kim Kardashian Net Worth
  • Amber Heard Net Worth
  • Jami Gertz Net Worth
  • Reese Witherspoon Net Worth
  • Jessica Alba Net Worth
  • Jennifer Aniston Net Worth
  • Scarlett Johansson Net Worth
  • Jennifer Lawrence Net Worth
  • Angelina Jolie Net Worth
Athletes
  • Cristiano Ronaldo Net Worth
  • LeBron James Net Worth
  • Lionel Messi Net Worth
  • Conor McGregor Net Worth
Singer
  • Rihanna Net Worth
  • Madonna Net Worth
  • Celine Dion Net Worth
  • Taylor Swift Net Worth
  • Beyonce Net Worth
  • Shakira Net Worth
  • Jennifer Lopez Net Worth
  • Justin Bieber Net Worth
  • R. Kelly Net Worth
Cricketer
  • Virat Kohli Net Worth
  • MS Dhoni Net Worth
  • Sachin Tendulkar Net Worth
Business Men
  • Elon Musk Net Worth
  • Gautam Adani Net Worth
  • Jeff Bezos Net Worth
  • Warren Buffett Net Worth
  • Mukesh Ambani Net Worth
  • Mark Zuckerberg Net Worth
  • Rob Walton Net Worth
  • Jack Ma Net Worth
Actor
  • The Rock Dwayne Johnson Net Worth
  • Jason Statham Net Worth
  • Tyler Perry Net Worth
  • Tom Cruise Net Worth
  • Eddie Murphy Net Worth
  • George Clooney Net Worth
  • Adam Sandler Net Worth
  • Brad Pitt Net Worth
  • Will Smith Net Worth
  • Vin Diesel Net Worth
  • Keanu Reeves Net Worth
  • Robert Downey Jr. Net Worth
  • Ryan Reynolds Net Worth
  • Leonardo DiCaprio Net Worth
  • Arnold Schwarzenegger Net Worth
families
  • Rothschild Family Net Worth
  • Walton family Net Worth
  • The Bush Family Net Worth
  • Rockefeller Net Worth
NBA Players
  • Michael Jordan Net Worth
  • LeBron James Net Worth
  • Kobe Bryant Net Worth
  • Magic Johnson Net Worth
  • Chris Paul Net Worth
  • Stephen Curry Net Worth
NFL Players
  • Fran Tarkenton Net Worth
  • Tom Brady Net Worth
  • Aaron Rodgers Net Worth
  • Jim Brown Net Worth

© 2023 Caknowledge.com • ❤️ From Your Heart

The materials and information provided on this website are for reference purposes only.