E-tax understand that Income tax plays an important role in financial tax planning directly as well as indirectly. Unlike, Advance tax which is one of the direct sources of tax, Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are indirect sources of tax for government. Both are charged at the source of income itself.
As per the Income Tax provisions, if amount of payment exceeds the permissible limits, then the person (deductor) who makes payment of a specified nature to another person (deductee), is liable to deduct TDS from such payment and deposit the same with government. TDS is applicable on payments such as salaries, professional fees, interest, rent, commission and so on. Under the provisions of Income Tax, a seller who makes a sale of a specified nature to a buyer, is required to collect TCS from such sale proceeds and deposit the same with government. TCS is applicable on sales of goods like liquor, timber, scrap, minerals, and so on. TCS is charged only on sales and not on production or manufacturing.
Non/late deduction and/or deposit of tax shall attract per month interest liability and non/late filing of return shall attract per day penalty and prosecution (imprisonment).Our Compliance Process Covers: