Financial Year Period for Foreign Company TDS TCS Threshold

Hey Rutuja!

For Foreign Company TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) threshold calculations, the financial year period generally follows the Indian financial year calendar, i.e., 1st April to 31st March of the next year.

So, all TDS/TCS thresholds for foreign companies are calculated based on the income or transactions occurring within the financial year April 1 to March 31.

If you are deducting TDS or collecting TCS for payments to foreign companies or foreign remittances, you aggregate amounts during this FY period for threshold applicability.