1. Legal Basis
- Section 206C(3): Mandates deposit of Tax Collected at Source (TCS)to the Central Government within specified timelines.
- Rule 37CA: Prescribes the due dates, modes, and proceduresfor TCS payment.
2. Key Compliance Requirements
A. Due Dates for TCS Deposit
| COLLECTOR TYPE | DUE DATE |
| Government Offices | · Without challan: Same day of collection.
· With challan: Within 7 days from month-end. |
| Other Collectors (e.g., businesses, individuals) | · 7th of the next month (e.g., August 7 for July collections) |
B. Mode of Payment
- Electronic Payment: Mandatory for all deductors (except government offices without challan).
- Methods:
- Internet banking (RBI/SBI/authorized banks).
- Debit card.
- Challan Used: Form 26QB(for property) or Form 26QC (for rent) if applicable.
- Methods:
C. Government Offices
- Must submit Form 24G(monthly statement) to the Principal Director of Income Tax (Systems):
- Due Date:
- March collections: By April 30.
- Other months: Within 15 daysof month-end.
- Due Date:
3. Penalties for Non-Compliance
| DEFAULT | CONSEQUENCE |
| Late Deposit | Interest @ 1% per month (from due date to payment date). |
| Non-Deposit | Penalty = TCS amount + interest. |
| Incorrect Filing | ₹10,000–₹1,00,000 penalty (Section 271H). |
4. Practical Workflow
- Collect TCS: At the time of sale/payment receipt.
- Deposit via E-payment: Use NSDL/ITD portalwith valid TAN.
- File Quarterly Return (Form 27EQ): By the 15th of next monthpost-quarter.
- Issue TCS Certificate (Form 27D): Within 15 daysof return filing.
5. Recent Updates (2024–25)
- E-invoicing Integration: TCS must reflect in invoices for GST compliance.
- Budget 2025: No changes to deposit timelines but stricter validations for PAN/TAN linkage.
Key Takeaways
✔ TCS must be deposited by the 7th of the next month (e.g., August 7 for July).
✔ Government offices follow separate rules (same-day/challan-based).
✔ E-payment is mandatory (except for govt. without challan).
✔ Penalties apply for delays (1% interest + fines).
