FAQ Section
What is Tax Deducted at Source (TDS)
A certain predetermined percentage of tax is deducted by the payer at the time of making payments to the receiver, and this amount is then credited to the government. TDS is applicable to a wide range of income categories such as salaries, interest on fixed deposits, rent, commissions, etc under different Sections. TDS helps prevent tax evasion and understanding it is crucial for both payers and receivers of income in India.
What is the due date for a tax deductor to deposit TDS to the Government?
Tax deducted at source has to be deposited to the credit of the Central Government within the following due dates:
- In case the amount is credited or paid in the month of March - On or before 30thApril following the month in which the deduction is made (i.e., March).
- In any other case - Within seven days from the end of the month in which the deduction is made.
What is Tax Collected at Source (TCS)
Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale and deposit the same within stipulated timelines with the tax authorities. Section 206C of the Income-tax act provides in depth details the goods on which the seller has to collect tax from the buyers.
What is the due date for a tax collector to deposit TCS to the Government?
-within 7 days from the last day of the month in which the tax was collected (monthly).
-If fails to pay with in the stipulated time, with 1% Interest for the month or a part of the month.
