Tuesday, 10 December 2013

Difference between TDS and TCS

TDS :-Tax deducted at source arises when we are making the PAYMENTS which are covered under the purview of TDS

Example :-Payment of salary above the AVERAGE limit (194B)
               Payment of professional charges (194J) etc.

Note :- At the time of TDS Payer has to pay lesser amount than the actual amount

TCS :- Tax collected source arises when we are dealing with the transactions which are covered under section 206C(1) of income tax act 1961

Example :-Sale of scrap,Sale of alcoholic liquor etc.

Note :-At the time of TCS seller is used to collect higher amount than the invoice amount

However in both the cases tax amount will be remitted in govt.account








                

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