TDC, TCS & ITR Compliance Retainership Service in India

Overview of TDS, TCS, and Business ITR Compliance in India

Tax Deducted at Source (TDS), Tax Collected at Source (TCS), and Business Income Tax Return (B-ITR) are crucial direct tax compliance obligations for every firm, LLP, or company operating in India, as per the Income Tax Act and Rules. TDS involves deducting tax on specified payments such as salary, interest, rent, dividends, etc., at rates prescribed in Sections 192 to 196D.

Under Section 206C, Tax Collection at Source (TCS) applies to the sale of goods falling under categories A, B, C, and D, including alcoholic liquor, minerals, motor vehicles exceeding Rs 10 lakhs in value, etc.

Non-compliance with TDS/TCS provisions attracts interest and penalties, including prosecution. Failure to deduct or deposit TDS results in disallowance of the deductible amount under section 40(a)(ia), leading to additional income tax liability with interest.

Additionally, TDS is now applicable to property transactions, where the purchaser is required to deduct 1% TDS on the sales consideration and deposit it with the government, along with filing returns and issuing certificates to the seller.