Income Tax
TCS (Tax Collected at Source)
Tax collected by the seller from the buyer at the time of sale of specific goods/transactions.
Full Definition
Tax Collected at Source (TCS) is collected by sellers from buyers on specified transactions — liquor, scrap, forest produce, LRS remittances, overseas tour packages and e-commerce transactions. The seller deposits TCS with the government and issues Form 27D to the buyer. The buyer claims TCS credit in their ITR. TCS on LRS remittances (Section 206C(1G)) is collected at 20% for amounts above ₹7 lakh per year (for education and medical purposes, 0.5%).
More Income Tax terms
ITR (Income Tax Return)
Annual declaration filed with India's Income Tax Department reporting income, deductions and tax paid.
AY (Assessment Year)
The year in which income earned in the previous financial year is assessed and taxed.
FY (Financial Year)
The 12-month period from April 1 to March 31 during which income is earned and recorded.
PAN (Permanent Account Number)
Unique 10-character alphanumeric identifier issued by the Income Tax Department to every taxpayer.
TAN (Tax Deduction Account Number)
10-character number required by entities that deduct or collect tax at source (TDS/TCS).