How can I claim TCS in income tax?

Asked by: Prof. Rosalia Lehner  |  Last update: March 12, 2023
Score: 4.3/5 (6 votes)

Every tax collector has to submit a quarterly TCS return i.e in Form 27EQ in respect of the tax collected by him in a particular quarter. The interest on delay in payment of TCS to the government should be paid before filing of the return.

How can I claim my TCS amount?

Thus, for availing GST TDS/TCS deducted by the deductors/collectors all the deductee need to file 'TDS/TCS credit received' tab on the portal. The deducted amount will appear in Cash Ledger which can be used for payment of balance amount of tax after setting off with the Input tax credit.

How can I get tax exemption in TCS?

Total Tax Exemption: The buyer has to declare in a Form 27C that he is eligible for total exemption from paying TCS. The declaration has to specify and prove that the goods that have been declared are intended for the purposes of processing and manufacturing and not trading.

Who can claim TCS credit in income tax return?

TCS (tax collected at source) could have been paid by you if the motor vehicle you purchased was worth more than Rs 10 lakh. Credit of TCS during the year has to be claimed in your ITR in a manner similar to that for TDS.

Can I claim TCS on purchase?

The government has introduced a new section 206C (1H) through Finance Act 2020 to extend the TCS provisions to the seller of goods. As per this provision, a seller whose turnover is above Rs 10 crore is required to collect tax, when he receives more than Rs 50 lakh from one buyer during a financial year.

TCS (Tax Collected at Source) Full Details with Rate, Refund of TCS, Section 206 CA Sumit Sharma

18 related questions found

Can TCS be claimed as refund?

Yes, TCS can be claimed as refund in bank account. In this scenario, in most of the cases, GST liability will always be lower than ITC because the GST on Commission / courier charges of Flipkart, Amazon etc. will be 18%, apart from ITC on purchases, expenses etc.

What is TCS tax with example?

Tax Collected at Source or TCS -Example

If a buyer is purchasing a car that costs Rs 10.01 lakhs then an amount of Rs 10,010 would be payable as TCS. This amount would need to be submitted to a particular branch of the bank which has been given permission by the government for receiving such payments.

Do TCS employees need to file ITR?

If you still have not filed your income tax return (ITR) for FY 2020-21, then you will have to pay higher TDS, TCS from April 1, 2022, in case total TDS, TCS was Rs 50,000 or more in FY 2020-21.

What happens if TCS is not collected?

b) Levy of 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.

What is TCS tax refund?

If your client's refund is less than expected and you see a coinciding TCS TREAS 449 offset, this means that the tax payers refund has been reduced to repay a debt collected through the Treasury Offset Program. This program is designed to collect delinquent debts that are owed to states and federal agencies.

How do I claim TCS collected by ecommerce?

Which form can one use to file TCS returns. e-Commerce operators have to file GSTR-8 by 10th of the next month in which the tax was collected. This return will only be filed once the tax collected has been deposited to the respective credit of the government.

When can TCS be claimed?

TCS returns would be filed on quarterly basis as per due-dates provided in Income-tax law and as applicable from time to time. As per currently prevailing time-limits, TCS certificates shall be issued within 15 days from due-date of filing quarterly TCS returns.

What is the new rule of TCS?

The new rules cover those whose aggregate tax deducted at source (TDS) or tax collected at source (TCS) during a fiscal year is Rs 25,000 or more. In the case of senior citizens, the aggregate of Rs 50,000 will apply.

How is TCS calculated?

TCS to be calculated on sales return (sales return order or sales credit memo) For example, sales return from customer for INR 10,000 on which 1% TCS is applicable for Nature of collection “Scrap”.

Why do we deduct TCS?

TCS is the tax which is collected by sellers while selling something to buyers. TDS deduction is applicable on payments such as salaries, rent, professional fee, brokerage, commission, etc. TCS deduction is applicable on sales of goods like timber, scrap, mineral wood, and so on.

Is TCS applicable if TDS is deducted?

As per this clause TCS is not required to be collected if buyer is liable to deduct TDS and deducted TDS. After going through both the provisions it is abundantly clear that TDS is primary and TCS is secondary.

How can I file TCS employee Quora tax return?

Same as how other IT employees working in non-TCS, non-Infosys, etc companies file. you have to visit the income tax returns official website, keep your form 16 handy ( you can download it from your employer portal) login into the income tax department website, open your form 26 compare 16 and 26 forms.

Who is liable to collect TCS?

1 What is TCS tax? TCS (Tax Collection at Source) is a tax that is payable by the seller after collecting the same from the buyer at the time of sale of the goods.

Who can collect TCS under GST?

Section 52 has been inserted under the CGST law for all e-commerce aggregators to bring TCS in GST. e-Commerce aggregators are made responsible under the GST law for deducting and depositing tax at the rate of 1% from each transaction.

Should TCS be deducted on GST amount?

2020 has clarified that no adjustment on account of GST is required to be made for TCS collection u/s 206C(1H) as the collection is made with reference to receipt of an amount of sale consideration. Thus, TCS is to be collected on the sales amount inclusive of GST.

What is TCS deposit?

Tax collected at source (TCS) is the tax collected by the seller from the buyer on sale so that it can be deposited with the tax authorities. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the buyers.

Is TCS on LRS refundable?

There is no provision as such to refund the amount of TCS to the buyer by the booking agent. The buyer would be required to claim it back in their income tax return at the time of filing their income tax return.

Will TCS reflect in 26as?

Form 26 AS is a consolidated statement that provides the complete details of the following: Tax Deducted at Source (TDS) Tax Collected at Source (TCS)

How do I show TCS in invoice?

How to create an invoice/purchase with TCS?
  1. Create a new tax account 'TCS', mention percentage as 1.18% instead of 1% because this 1% is computed on net value after CGST and SGST. ...
  2. Create a new Tax Group 'GST@18% + TCS' with SGST@9%, CGST@9% and TCS.
  3. Select this tax group while creating the invoice.