Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) are important provisions under the Income Tax Act, 1961. Businesses and individuals making specified payments such as salaries, rent, professional fees, commission, interest, or purchase of goods are required to deduct TDS, while sellers of certain goods/services must collect TCS at prescribed rates.

TDS/TCS compliance involves four major responsibilities: deduction/collection of tax at the applicable rate, timely deposit with the government, issuance of certificates (Form 16/16A for TDS and Form 27D for TCS), and filing of quarterly returns. The main forms include Form 24Q (salary TDS), Form 26Q (other TDS), and Form 27EQ (TCS returns).

Due dates for filing returns are quarterly (30th June, 30th September, 31st December, and 31st March) with the specified timelines for deposit of tax, generally by the 7th of the following month. Non-compliance may lead to penalties, interest, and disallowance of expenses.

Regular TDS/TCS compliance ensures smooth credit availability to deductees/collectees, avoids litigation, and maintains business credibility with statutory authorities.