TCS ( Tax collected at source )

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Hussain (Querist)

04 October 2008 Can anyone tell me what is TCS ( Tax collected at source ) and what effect does it make in the income tax calculation .

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

04 October 2008 Pl visit www.incometaxindia.gov.in and read section 206C please.

Venkat Rao Marella

Venkat Rao Marella (Expert)

04 October 2008 Tax should be collected at source by specified sellers upon selling specified goods. The amount so collected on behalf of the buyer, should be deposited with the Government within a period of 1 week from the end of the month of such deduction. The amount so deducted and remitted shall be treated as remittance on behalf of the buyer and credit shall be allowed to the buyer from his tax liability. See section 206C of the Income tax Act, 1965.

Ravikumar.G

Ravikumar.G (Expert)

04 October 2008 Sce 206C:
TCS is the responsibility of the receiver of payment ie seller of particular commodities, to collect the tax from the buyer (payer) at source on the presumption that the buyer of the goods will have taxable income.

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