Tabular Summary based on the Key Provisions:
| Aspect | TDS (Tax Deducted at Source) | TCS (Tax Collected at Source) |
| Relevant Sections | Chapter XVII-B, e.g., Sections 192, 194, 206AA | Chapter XVII-BB, e.g., Sections 206C, 206CC, 206CCA |
| Applicable On | Payments like salaries, interest, rent, fees for professionals, etc. | Sale of specified goods (e.g., alcohol, tendu leaves, scrap, minerals) |
| Deductor/Collector | Person making specified payments to a resident | Seller receiving payment for specified goods |
| Rates | Prescribed by Income Tax Act, subject to changes in Finance Acts | Specified in the Act, often percentage-based (e.g., 1% for scrap) |
| Non-Filer Impact | Higher TDS for non-filers under Section 206AB | Higher TCS for non-filers under Section 206CCA |
| PAN Requirement | Mandatory; otherwise higher rates under Section 206AA | Mandatory; otherwise higher rates under Section 206CC |
| Time of Deduction | At the time of credit/payment, whichever is earlier | At the time of debiting amount or receipt of payment, whichever is earlier |
| Filing Returns | Form 26Q, 27Q for reporting | Quarterly statements in prescribed forms |
| Consequences of Default | Deemed assessee-in-default; penalties and interest apply | Deemed assessee-in-default; penalties and interest apply |
Section-Wise Tabular Summary of the TDS and TCS Provisions:
TDS Provision :
| Section | Particulars | Applicable On | Rate | Threshold Limit | Key Notes |
| 192 | TDS on Salary | Salaries paid to employees | As per slab rates | Basic exemption limit | Deduction considering employee’s declaration (Form 12BB). |
| 194 | TDS on Dividends | Dividends by companies | 10% | ₹5,000 | Applicable to resident shareholders only. |
| 194A | TDS on Interest (except securities) | Interest by banks, financial institutions | 10% | ₹40,000 (₹50,000 for senior citizens) | Not applicable to certain exempted entities. |
| 194C | TDS on Contracts | Payments to contractors/sub-contractors | 1% (individual/HUF), 2% (others) | ₹30,000 per contract/₹1,00,000 annually | Applicable to contracts including supply of labour. |
| 194H | TDS on Commission/Brokerage | Commission or brokerage | 2% | ₹15,000 | Excludes insurance commission covered under Section 194D. |
| 194I | TDS on Rent | Rent for land, building, plant, or machinery | 2% (plant/machinery), 10% (land/building) | ₹2,40,000 annually | Includes sub-letting cases. |
| 194J | TDS on Professional Fees | Fees for professional/technical services | 10% (general), 2% (technical) | ₹30,000 annually | Applicable to consultancy services as well. |
| 194Q | TDS on Purchase of Goods | Payment to resident for goods exceeding limit | 0.1% | ₹50,00,000 annually | Deductor must ensure supplier’s compliance. |
| 206AB | Higher TDS for Non-filers | TDS for non-filers of ITR in specified cases | Twice the rate or 5%, whichever is higher | NA | Non-filers as defined in the Act. |
TCS Provision:
| Section | Particulars | Applicable On | Rate | Threshold Limit | Key Notes |
| 206C(1) | TCS on Specified Goods | Alcohol, tendu leaves, scrap, minerals | 1%-5% | No limit | Rate depends on the type of goods sold. |
| 206C(1F) | TCS on Sale of Motor Vehicles | Sale of motor vehicles exceeding limit | 1% | ₹10,00,000 | Applicable to all sellers. |
| 206C(1G) | TCS on Overseas Remittance | Remittances under LRS, overseas tours | 5%-20% | ₹7,00,000 (for education/medical cases) | Higher rates for others. |
| 206C(1H) | TCS on Sale of Goods | Sale of goods (exceeding limits) | 0.1% | ₹50,00,000 | Seller turnover must exceed ₹10 crore. |
| 206CCA | Higher TCS for Non-filers | TCS for non-filers of ITR | Twice the rate or 5%, whichever is higher | NA | Similar applicability to Section 206AB. |
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