What is TCS (Tax Collected at Source)? — Meaning, Definition & Example
Definition
TCS is a tax collected by the seller from the buyer at the time of sale of specified goods. TCS applies to: foreign remittance above ₹7 lakh (5-20%), sale of motor vehicles above ₹10 lakh (1%), scrap sale (1%), minerals/timber (various rates). TCS is adjustable against final tax liability.
Sending ₹10 lakh abroad for education? TCS of 5% on amount above ₹7 lakh = ₹15,000 collected. This ₹15,000 is adjustable when you file ITR.
🇮🇳 TCS (Tax Collected at Source) in Hindi / हिंदी में
TCS (टैक्स कलेक्टेड एट सोर्स) — TCS विक्रेता द्वारा निर्दिष्ट वस्तुओं की बिक्री के समय खरीदार से एकत्र किया जाने वाला कर है।
TCS (Tax Collected at Source) (Hinglish) — TCS seller dwara buyer se specified goods ki sale ke time collect kiya jaane wala tax hai. Foreign remittance, vehicles, scrap pe lagta hai. ITR mein adjust ho jaata hai.