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Tax Collected at Source(TCS)| Due dates of payment and filing of TCS statements.

TCS - Collection, Payment, Return, Consequences in case of default

(TCS) Tax Collected at Source.

tax collected at source TCS

Who is liable to furnish TCS statement

Every person who is responsible for the collection of tax at source(TCS) shall be required to furnish its quarterly statements with respect thereof.

Form for filing TCS statements

Quarterly TCS statements shall be furnished in Form No. 27EQ

​​​​​​TCS Rates

Nature of Goods%
Alcoholic liquor for human consumption1
Tendu leaves5
Timber obtained under a forest lease2.5
Timber obtained by any mode other than a forest lease2.5
Any other forest produce (not being timber/tendu leaves)2.5
Scrap1
Minerals, being coal or lignite or iron ore1
Parking lot2
Toll plaza2
Mining and Quarrying2

 Every person, being a seller, who receives any amount as consideration for the sale of a motor vehicle of the value exceeding Rs. 10 Lakh shall, at the time of receipt of such amount, collect from the buyer of such vehicle, a sum equal to 1% of the sale consideration as income-tax.

Every person, being a seller of an overseas tour programme package, shall collect tax at the rate of 5% if the buyer has furnished his PAN.

In case of non-availability of PAN of the buyer, Section 206CC will get attracted and tax shall be collected at the rate of 10% instead of 5%.

 Due dates for Payment of TCS:

Tax collected at source shall be deposited to the credit of Central Government:

 In case tax is collected by an office of the Government In case tax is collected by non- Government person
(a) Where tax is paid without production of an income-tax challan, on the same day when tax is collected. or
(b) Where payment of tax is accompanied by an income-tax challan, on or before 7 days from the end of the month in which tax is collected.
within 7 days from the end of the month in which tax is collected.

Mode of Payment TCS:

Taxes collected at source shall be deposited to the credit of the Central Government in following modes:

1) E-Payment: E-Payment is mandatory for:

a) All the corporate assesses;

b) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable. ​

2) Physical Mode: By furnishing the Challan No. 281 in the authorized bank branch

Note:​​

When tax is collected by a government office, it can remit the amount to the Central Government without the production of an Income-tax challan and by making only book adjustments. In such a case, it has to furnish Form No. 24G to NSDL with a prescribed time-limit.

Consequences in case of default are made in the payment of TCS

If a collector fails to collect TCS or after collecting the same fails to deposit it to the credit of Central Government’s account then:

  • a) Interest: If the person responsible for collecting tax at source does not collect it or after collecting fails to pay it to the Government, he shall be liable to pay simple interest at the rate of 1% per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid and such interest shall be paid before furnishing the quarterly statement for each quarter.
  • b) Penalty: If any person fails to collect the whole or any part of the tax, then such person shall be liable to pay by way of penalty under Section 271CA, a sum equal to the amount of tax which such person failed to collect.
  • c) Prosecution: If a person fails to pay to the credit of the Central Government the tax collected by him, he shall be punishable with rigorous imprisonment for a term which shall not be less than 3 months but which may extend to 7 years and with fine.

Due date of filing of TCS statements

Statement of collection of tax under proviso to sub-section (3) of section 206C.

The due dates for filing quarterly TCS statements are as follows: –

PeriodDue dates
Quarter ended 30th June15th July of the Financial Year
Quarter ended 30th September15th October of the Financial Year
Quarter ended 31st December15th January of the Financial Year
Quarter ended 31st March15th May of the Financial Year immediately following the Financial Year in which collection is made.

Furnishing of TCS statement electronically

The quarterly TCS statement shall have to be furnished electronically in any of the following mode:

  • a) Furnishing the statement electronically under digital signature; or
  • b) Furnishing the statement electronically along with the verification of the statement in Form 27A or verified through an electronic process.

How to pay TCS Challan No. 281/ITNS 281 online

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