TDS & TCS

 

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TDS & TCS

 

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TDS

• Tax Deduction at Source

• Tax deducted on payments made by companies and individuals if the payment exceeds a certain limit

• TDS deductions are made on payments including salary, rent, brokerage, professional fees, commission, interest etc.

• A person making a specified payment over and above a certain limit can deduct TDS according to the Income Tax Act 1961

• TDS certificates have to be issued by a person deducting TDS to the assessee from whose income TDS was deducted while making payment 

 

 

TCS 

• Tax Collection at Source

• Tax collected by a seller when selling goods to a buyer

• TCS deductions are made on the sale of goods such as scrap, timber, mineral wood, tendu leaves etc

• A person selling specific goods can collect TCS according to the Income Tax Act, 1961

 

TAN is to be obtained by individuals responsible for deducting tax at source (TDS) or collecting tax at source (TCS)

 

 

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