TDS & TCS Rates and Compliance for FY 2024-25 & 2025-26: Filing & Amendments

A TDS is a mechanism where a specified percentage of income is deducted by the payer at the time of making payment to the payee. This deducted amount is then deposited with the government. It's a way of ensuring tax collection at the source of income.

A TCS is a mechanism where the seller collects tax from the buyer at the time of sale of certain specified goods and deposits it with the government. It's similar to TDS but collected by the seller.

A The key difference is who deducts or collects the tax: TDS is deducted by the payer, while TCS is collected by the seller. They apply to different types of transactions and at different points in the transaction process.

A TDS and TCS help prevent tax evasion, ensure a regular flow of tax revenue to the government, and allow tracking of financial transactions.

A Any person making specified payments (such as salary, rent, professional fees) exceeding certain thresholds is required to deduct TDS. This includes individuals, businesses, and organizations.

A TDS is deducted on payments including salaries, rent, professional fees, interest, commission, and payments to contractors.

A TDS rates vary depending on the type of payment and the payee's tax status. Refer to the Income Tax Department website for the latest rates.

A TDS returns (Form 24Q, 26Q, 27Q, 27EQ) are filed quarterly, providing details of TDS deducted and deposited.

A The due dates for TDS returns are:
Quarter 1 (April-June): July 31
Quarter 2 (July-Sept): October 31
Quarter 3 (Oct-Dec): January 31
Quarter 4 (Jan-March): May 31

A A TDS certificate is issued by the deductor to the deductee, showing the amount of TDS deducted. Form 16 is for salary TDS, and Form 16A is for non-salary TDS.

A Failure to deduct or deposit TDS can lead to penalties, including fines and interest.

A Specified sellers of certain goods (such as alcohol, timber, scrap) are required to collect TCS from the buyer.

A TCS is collected on the sale of various goods as specified by the Income Tax Act.

A TCS rates vary depending on the type of goods. Refer to the Income Tax Department website for the latest rates.

A TCS returns (Form 27EQ) are filed quarterly, providing details of TCS collected and deposited.

A The due dates for TCS returns are the same as for TDS returns (July 31, October 31, January 31, May 31).

A A TCS certificate is issued by the seller to the buyer, showing the amount of TCS collected.

A Failure to collect or deposit TCS can lead to penalties, including fines and interest.

A TDS/TCS returns are filed online through the Income Tax Department's e-filing portal.

A Form 26AS is an annual tax statement showing TDS/TCS credits, tax paid by the assessee, and other tax-related information.

A You can download Form 26AS from the Income Tax Department's e-filing portal.

A TDS/TCS must be deposited by the 7th of the following month in which it is deducted or collected.

A Errors can be rectified through revised returns.

A Penalties vary depending on the delay and the nature of non-compliance.

A Refer to the Income Tax Department's website or consult with a tax professional for the latest rates.

A Detailed regulations are available on the Income Tax Department's website.

A Reconciliation involves comparing the TDS/TCS deducted or collected with the amounts shown in Form 26AS.

A The Income Tax Department's website is the official source for notifications and circulars.