What is Tax Collected at Source (TCS): Tax Collection - Tax Craft Hub

Tax Collected at Source (TCS) is a mechanism under the Indian Income Tax Act wherein the seller collects tax from the buyer at the point of sale. This tax is applicable to specific goods and services, such as alcoholic liquor, tendu leaves, timber, minerals, and scrap, among others. The collected tax must be deposited with the government, and the seller is responsible for this remittance. TCS aims to ensure tax compliance and reduce tax evasion by capturing transactions at the source. The buyer can claim the TCS amount as a credit against their overall tax liability while filing their income tax return.

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