TDS & TCS
This query is : Resolved
10 July 2010
Dear Sir,
what is TCS ?? how it is difference from TDS ?? and what is the form,due date etc for TCS ??
Thanks
Krishna
what is TCS ?? how it is difference from TDS ?? and what is the form,due date etc for TCS ??
Thanks
Krishna
Rahul Gupta
(Expert)
10 July 2010
Difference between TDS and TCS
TDS and TCS are two exactly opposite scenarios.
The former is the deduction from the income of the recipient while the later is the amount accumulated by the company or others in the form of tax. So in other words TDS is a form of expense while TCS is a form of income.
In India the tax is deducted at source (TDS) on the following grounds:
* Salaries
* Rent received from properties
* Payment received on Commission or brokerage
* Interest received on bonds and securities.
* Interest received from fixed deposit.
* Other sources of income are also included in it as in payment received from other professional services apart from salary.
On the other hand it is the responsibility of the seller or the company to deposit the Tax Collected at Source.
Under Section 206C, every item that a seller sells is liable for some percentage of tax. For example even if a seller sells a scrap it is entitled for a tax of 1% on the selling price.
Following are the goods when sold in the market must be subjected to TCS and these collected taxes must be deposited in the Income Tax departments at the end of the financial year:
* Alcohol and Tendu leaves
* Timber from the leased forest
* Any other product obtained from the leased forest apart from the wood.
However apart from the above mentioned articles the TDS collected from the employees are also termed as the tax collected as source (TCS) which needs to be deposited to the Income Tax department at the end of each and every financial year.
It is important to note that while working on tally9 at its advanced level we need to categorize the TDS and TCS distinctly as both of these items needs to be reflected in the company accounts as per the rules of Income Tax Act 1961.
Source Link > https://ekikrat.in/Difference-between-TDS-and-TCS
TDS and TCS are two exactly opposite scenarios.
The former is the deduction from the income of the recipient while the later is the amount accumulated by the company or others in the form of tax. So in other words TDS is a form of expense while TCS is a form of income.
In India the tax is deducted at source (TDS) on the following grounds:
* Salaries
* Rent received from properties
* Payment received on Commission or brokerage
* Interest received on bonds and securities.
* Interest received from fixed deposit.
* Other sources of income are also included in it as in payment received from other professional services apart from salary.
On the other hand it is the responsibility of the seller or the company to deposit the Tax Collected at Source.
Under Section 206C, every item that a seller sells is liable for some percentage of tax. For example even if a seller sells a scrap it is entitled for a tax of 1% on the selling price.
Following are the goods when sold in the market must be subjected to TCS and these collected taxes must be deposited in the Income Tax departments at the end of the financial year:
* Alcohol and Tendu leaves
* Timber from the leased forest
* Any other product obtained from the leased forest apart from the wood.
However apart from the above mentioned articles the TDS collected from the employees are also termed as the tax collected as source (TCS) which needs to be deposited to the Income Tax department at the end of each and every financial year.
It is important to note that while working on tally9 at its advanced level we need to categorize the TDS and TCS distinctly as both of these items needs to be reflected in the company accounts as per the rules of Income Tax Act 1961.
Source Link > https://ekikrat.in/Difference-between-TDS-and-TCS
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