TDS and TCS deduction collection duration doubt

Dear Chartered persons ,

The TDS and TCS are deduct and collect for previous year or current year the payment made ???

for an example 1 St Q Apr to June from this April to June month if I had any payment means under the rules of TDS only the three months should I have to deduct the TDS????


TDS and TCS deducted on the colleced

Previous Fy ??
current year ???
Quarterly basis of current year??
Replies (2)
Quick Summary
This discussion clarifies when TDS and TCS should be deducted or collected. The key takeaway is that these deductions generally apply to payments made or credited in the current financial year. While the specific rules and thresholds vary depending on the nature of the payment, TDS is typically deducted at the time of credit or payment, whichever comes first. TCS is collected upon receipt of sale consideration. Both require timely payment to the government and filing of returns.

TDS Deduction Rules:

  1. Threshold Limit: TDS is applicable if the payment made or credited during the month exceeds a threshold limit. The threshold limit varies based on the nature of the payment, and ranges from Rs. 30,000 to Rs. 1 crore.

  2. Rates of TDS: The rates of TDS also vary based on the nature of the payment. The rates can range from 1% to 30% depending on the type of payment and the status of the payee.

  3. Time of Deduction: TDS must be deducted at the time of credit or payment, whichever is earlier.

  4. Payment and Filing: TDS deducted during the month must be paid to the government by the 7th of the following month, and TDS returns must be filed by the 10th of the following month.

TCS Collection Rules:

  1. Threshold Limit: TCS is applicable if the sales during the month exceed a threshold limit of Rs. 50 lakhs.

  2. Rates of TCS: The rate of TCS is generally 1% of the sale amount. However, there are some exceptions where the rate is higher or lower.

  3. Time of Collection: TCS must be collected at the time of receipt of the sale consideration.

  4. Payment and Filing: TCS collected during the month must be paid to the government by the 7th of the following month, and TCS returns must be filed by the 10th of the following month.

It's important to note that the specific TDS and TCS rules can vary based on the nature of the payment, the status of the payee, and other factors.

It can be for previous year and current year both. In some cases it is deducted at the time of payment or credit whichever is earlier and in some cases at the time of payment.

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