Do you know what is the difference between TDS and TCS? Who has to fill which? Today we are going to give you information about this. Tax deduction at source (TDS) and tax collection at source (TCS) are the two methods of collecting tax. TDS stands for Deduction at Source. TCS stands for Tax Collection at Source. In both cases, there is a need to file a return. We are telling you about them.
Explain that the Income Tax Department has announced the last date for filing income tax returns and some ITR forms have also been made available online, and offline. If you fail to file ITR within the due date, then the Income Tax Department can impose a hefty penalty. According to the Income Tax Department, July 31, 2023, has been announced as the last date for salaried individuals and taxpayers whose accounts are not required to be audited. To this date, taxpayers can file ITR online or offline.
What is TDS?
If someone has any income, then after deducting tax from that income, if the remaining amount is given to the person, the amount deducted as tax is called TDS. The government collects tax through TDS. It is deducted from different types of income sources like salary, interest, or commission received on any investment, etc. The onus of paying TDS is on the person or entity (company) making the payment. If the TDS deducted from your salary is more than your total tax liability, then it is refunded through ITR Filing.
What is TCS?
TCS is a tax collected at the source. It means tax collected at the source (tax collected from income). This tax is imposed on the transaction of certain types of goods. Like liquor, tendu leaf, timber, scrap, minerals, etc. While taking the price of the goods, tax money is also added to it and deposited with the government. After collecting it, the work of depositing it is done by the seller or the shopkeeper only. This is controlled in section 206C of the Income Tax Act.
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