Deduction of TDS and TCS
While paying income tax or any tax related discussion, the words TCS,TDS are heard. It is said that I got so much TDS deduction this time. But are these words correct? If TDS,TCS are cut, do they sink? Can you get them back? Let us learn about this today.
From the financial year 2023-24, any person with income below Rs 7 lakh is exempted from paying tax or filing tax returns with certain conditions. Under the old tax system, payment of advance tax was mandatory for those earning Rs 2.5 lakh or more annually. (Deduction of TDS and TCS)
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Many times TDS, TCS is deducted while paying tax. People believe that once your TDS or TCS is deducted it will not come back. But not so. TDS and TCS deducted from your salary can be recovered by doing a few things. Let’s get information about what to do, which method to use.
With all the talk about TCS lately, we decided to compare it with TDS to help you understand the key differences between the two.
TDS & TCS actually refer to separate taxes levied by the Indian Government, but many often mix up and use these terms interchangeably.
Both TDS (Tax… pic.twitter.com/vlddLGfG0h
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Tax is deducted (TDS) when certain payments are made like your salary, commission, rent, interest, professional fees, share dividend, crypto currency etc. A company or individual who is deducting TDS is called a deductor. The company or person receiving the payment is called the deductee.
Tax collected at source (TCS) is the tax payable by the 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 items on which sellers are required to recover tax from buyers.
How to recover TDS,TCS?
• If your annual income is less than 7 lakhs, you can claim TDS/TCS refund. To get this refund, you have to file an income tax return.
• After filing and verifying your income tax return, if you belong to low income group, you can file Form 15G/TCS to stop deduction of TDS and TCS.
• TDS and TCS are not applicable on your transactions. You can submit another declaration to Income Tax Department to prove your low income.
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