What is TDS (Tax Deducted at Source)?

TDS is a method of tax collection where a specified percentage is deducted at the point of income generation. The person responsible for making certain payments such as salary, commission, interest, rent, professional fees, etc., deducts tax at source and remits it to the Central Government on behalf of the recipient.

✅ Key Benefit: Helps curb tax evasion and promotes timely tax collection.

TDS Payment Due Dates

📌 Special Sections (194-IA, 194-IB, 194M): TDS must be deposited within 30 days from the end of the month of deduction.

Penalty for Late TDS Deduction or Payment

If TDS is not deducted or deposited within the specified time:

• 1% interest per monthfrom due date of deduction to actual deduction
• 5% interest per monthfrom date of deduction to the actual date of payment

Late deposit also results in penalties, disallowance of expenses, and further legal action.

What is TCS (Tax Collected at Source)?

TCS is the tax collected by a seller from the buyer at the time of sale of specified goods or services, such as scrap, alcohol, tendu leaves, forest produce, minerals, or sale of goods exceeding ₹50 lakhs.

The seller is responsible for collecting the tax and depositing it with the Government.

🔍 Example: A seller selling scrap worth ₹5 lakhs must collect TCS from the buyer and deposit it before the due date.

TCS Payment Due Date

Penalty for Late TCS Collection or Payment

As per Section 206C(7):

• 1% interest per monthon the defaulted amount from the date it was required to be collected/paid to the actual date of payment.
• Interest must be deposited before submitting the TCS return.

E-Filing of TDS & TCS Returns (Online)

For all corporates and Government entities, e-filing of TDS and TCS returns is mandatory. Other entities may choose between online or offline filing.

Using a professional TDS return filing service or TDS/TCS return filing software ensures timely and error-free compliance.

Need Help with TDS/TCS Filing or Compliance?

At LegalTax Coin, we help businesses across India simplify their TDS and TCS compliance—from deduction and collection to return filing and interest calculations.

“Compliance is not a burden—it’s a competitive advantage.”

✅ Why Choose Us?

• Expert tax consultants with years of experience
• Timely reminders for TDS/TCS due dates
• Accurate filing using best-in-class tools
• One-stop support for notices, penalties, and interest calculations

📩 Reach out to us at ________________ to stay ahead on your tax compliance.
Or book a free consultation call today to streamline your TDS/TCS processes with expert support!