Core concepts
- 01TDS sections (Sec 192-196) cover salary, interest, contractor, professional fee, rent, etc.
- 02TCS (Sec 206C): collected by seller — scrap, motor vehicles, foreign remittance, overseas tour.
- 03Threshold limits and rates vary by section (e.g., 194A interest > ₹40,000 / ₹50,000 senior).
- 04Sec 206AB / 206CCA — higher TDS/TCS for non-filers of returns (twice the rate).
- 05Advance tax (Sec 208): payable if liability > ₹10,000; quarterly instalments.
Flowchart summary
TDS / TCS Compliance | Deduct -> Deposit -> Return -> Issue Certificate | 194A | 194C | 194I | 194J | 194Q | 194R | 194T (new) | TCS 206C(1) | 206C(1F) | 206C(1G) | 206C(1H) | Quarterly TDS Returns (24Q, 26Q, 27Q, 27EQ)
Exam-critical pointers
- ⭐Sec 194T (FA 2024) — TDS on partner remuneration (effective 1 April 2025) — 10% above threshold.
- ⭐Sec 206C(1H) — TCS on sale of goods @ 0.1% if seller turnover > ₹10 cr & buyer purchases > ₹50L (rescinded if 194Q applies).
- ⭐TDS on virtual digital assets (Sec 194S) @ 1% — crypto transactions.
- ⭐Section 192 — employer responsible for considering all eligible deductions when computing TDS.
Make it click