The responsibility to collect Tax Collected at Source lies with certain specified persons or entities as mandated by the Income Tax Act. These entities collect tax from the payee at the time of sale or provision of certain goods or services. The collected tax is then deposited with the government.
Who holds the responsibility to collect TCS for FY 2023-24
| Section | Code | Type of Goods | Rate | Collected By | Limit |
| 206C (1) | 6CA | Alcoholic Liquor for Human Consumption | 1% | Seller | - |
| 206C (1) | 6CB | Timber obtained under a forest lease | 2.50% | Seller | - |
| 206C (1) | 6CC | Timber obtained by any mode other than under a forest lease | 2.50% | Seller | - |
| 206C (1) | 6CD | Any other forest produce not being timber or tendu leaves | 2.50% | Seller | - |
| 206C (1) | 6CE | Scrap | 1% | Seller | - |
| 206C (1) | 6CI | Tendu Leaves | 5% | Seller | - |
| 206C (1) | 6CJ | Minerals, being coal or lignite or iron ore | 1% | Seller | - |
| 206C (1) | 6CK | Bullion & Jewellery | - | Seller | - |
| 206C (1C) | 6CF | Parking Lot | 2% | Person who transfer their rights or interest in parking lots to other individuals or entities for their use. | - |
| 206C (1C) | 6CG | Toll Plaza | 2% | Person who transfer their rights or interest in toll plazas to other individuals or entities for their use. | - |
| 206C (1C) | 6CH | Mining & Quarrying | 2% | Person who transfer their rights or interest in mines or quarries to other individuals or entities for their use. | - |
| 206C (1F) | 6CL | Motor Vehicle (any mode of payment) | 1% | Seller of Motor Vehicle | Less than 10 lakh |
| 206C (1E) | 6CM | Cash Sale of any goods (other than bullion/jewellery) | - | Seller | - |
| 206C (1E) | 6CN | Providing any services (other than Ch-XVII-B) | - | Seller | - |
| 206C (1G) | 6CO | Overseas Tour Program Package | 5% | Seller of Overseas Tour Program Package | Less than or equal to 7 lakh |
| 206C (1G) | 6CO | Overseas Tour Program Package | 20% | Seller of Overseas Tour Program Package | More than 7 lakh |
| 206C (1G) | 6CP | Remittance under LRS for education loan taken from financial institution mentioned under section 80E | 0.50% | Dealer who receives an amount for remittance | - |
| 206C (1G) | 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) | Dealer who receives an amount for remittance | - | |
| (a) For Education & Medical remittance | 5% | Dealer who receives an amount for remittance | Less than 7 lakh | ||
| (b) Other foreign remittance | 20% | Dealer who receives an amount for remittance | Less than 7 lakh | ||
| 206C (1H) | 6CR | Sale of Goods | 0.10% (TCS in case of Non-Furnishing of PAN/Aadhaar:1%) | Seller whose turnover is more than 10 cr in previous FY | Less than 50 lakh |
Section 206CCA - Higher Rate of TCS for Non Filer of ITR
Section 206CCA of the Income Tax Act imposes a higher rate of TCS on buyers who have not filed their Income Tax Returns for the last two financial years before the relevant financial year, if the total of TCS and Tax Deducted at Source (TDS) was more than Rs. 50,000 in each of those two financial years, and the time limit to file ITR has expired.
The higher TCS rate is either two times the regular TCS rate mentioned in the Income Tax Act or 5%, whichever is higher.
Additionally, in specific cases mentioned under Section 206C(IG), a 5% TCS rate applies when an authorized dealer arranges remittance out of India of Rs. 7 lakh or more in a financial year from a buyer of foreign currency under the Liberalized Remittance Scheme (LRS). If Aadhaar or PAN is unavailable, the TCS rate is 10%.
Due date of filing of TCS Statements
| Quarter | Due date to file TCS return in Form 27EQ | Date for generating Form 27D |
| Quarter ending on 30th June | 15th July | 30th July |
| Quarter ending on 30th September | 15th October | 30th October |
| Quarter ending on 31st December | 15th January | 30th January |
| Quarter ending on 31st March | 15th May | 30th May |
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