Who has to file TCS return?

Asked by: Lavern Friesen  |  Last update: March 21, 2023
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As per Income Tax Act, 1961, all corporate and government deductors/collectors are compulsorily required to file their TDS/TCS returns on electronic media (i.e. e-TDS/TCS returns). However, deductors/collectors other than corporate/government can file either in physical or in electronic form.

Is TCS return compulsory?

It is compulsory for government and corporate collectors to file TCS returns in its electronic form, form and following 2004-2005, financial year. Other collectors have the provision to file TCS returns in physical form or electronic form.

What is TCS return filing?

Form 27EQ contains all details pertaining to tax that is collected at source. According to Section 206C of the Income Tax Act 1961, this form must be filed every quarter. The form has to be submitted by both the corporate and government collectors and deductors.

Is it mandatory to file TDS TCS return in GST?

Ans: Filing of TDS and TCS Credit Received statement for every tax period is not mandatory. It is required to be filed when any amount is deducted or collected by the recipient.

Who is liable for TCS under GST?

Tax Collected at Source (TCS) under GST means the tax collected by an e-commerce operator from the consideration received by it on behalf of the supplier of goods, or services who makes supplies through the operator's online platform. TCS will be charged as a percentage on the net taxable supplies.

TCS Return Filing LIVE Training| TCS on Sale of Goods

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Is nil TCS return mandatory?

It is compulsory for a deductor to file NIL return if he has done some payments and not deducted/Collected any TDS/TCS on the amount of payment. No Deduction Details and No Challan details is not a NIL returns.

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 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.

What is TCS tax?

Tax Collected at Source (TCS) is a tax payable by a seller which he collects from the buyer at the time of sale of goods. Section 206 of the Income Tax Act mentions the list of goods on which the seller should collect tax from buyers.

What is TDS and TCS return?

TDS is the tax which is deducted on a payment made by a company to an individual, in case the amount exceeds a certain limit. 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.

Who is responsible for TDS on sale of property?

TDS has to be deducted by the buyer on the entire amount that is paid or credited to the seller when the amount exceeds Rs 50 lakh. For example, if a property is bought for Rs 70 lakh then TDS has to be deducted on the entire amount–that is Rs 70 lakh, not on just the Rs 20 lakh that exceeds the Rs 50 lakh threshold.

Is TCS refundable in ITR?

TCS paid can be adjusted against tax payable, when individuals who would have paid TCS, file income tax returns (ITR) in India.

Is it necessary to file ITR If income is below 2.5 lakhs?

If your income is below Rs 2.5 lakh per annum, you must still file the ITR for financial planning.

Is TCS collected on GST amount?

The Central Board of Direct Taxes (CBDT) has clarified that 0.1 per cent Tax Collected at Source (TCS) on sale of goods and services worth more than Rs 50 lakh a year will be levied on the total sales consideration including the GST applied.

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 can I file nil TCS return?

Steps of Nil Return filing of TDS in a summary

Step-1 Login to TRACES Deductor login with the User ID, Password and TAN of the deductor. Step-4 Then, give the reason for non-filing. Next, click on “Add Statement details”. Step-5 Acknowledge the declaration, NIL return will be successfully filed.

Is there any penalty for non-filing of nil TDS return?

As per section 234E, where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues. The amount of late fees shall not exceed the amount of TDS.

What is declaration of non-filing?

Ans: A NIL Declaration is basically a declaration for non-filing of TDS Statements for those deductors who were not liable to deduct any tax during the relevant quarter or have not deducted tax during any quarter and subsequently did not file a TDS Statement U/s 200(3) of the Income Tax Act'1961 for any quarter.

On which services TCS is applicable?


1000 through an e-commerce operator like Amazon, the Amazon would deduct tax @ 1% of the net value of Rs. 1000 i.e. Rs. 10 and remit the same to the account of Government. Thus GST TCS applies on the net value of the goods or services supplied through the e-commerce operator.

Is TCS applicable on service invoice?

This TCS is applicable only on sale of goods and not on services.

Is TCS applicable on purchase of goods?


With effect from 1.10. 2020 Finance amendment act, 2020 brings amendment in section 206C(1H) OF Income tax, 1961, which imposes TCS on seller whose turnover is more than 10 crores in preceding financial year, is liable to collect TCS on the amount exceeding Rs. 50 Lakhs.

Who will file 26QB?

The deductor i.e the purchaser of property has to file form 26QB which is a Challan cum declaration statement within 30 days from the end of the month in which payment is made. No separate TDS return is to be filed in respect of such deduction.

Who should pay TDS when buying property?

Sec 194 IA of the Income Tax Act, 1961 states that for all transactions with effect from June 1, 2013, Tax @ 1% or 0.75% should be deducted (depending upon the Date of Payment/Credit to the Seller) by the purchaser of the property at the time of making payment of sale consideration.