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​​​Due date for deposit of TCS to the credit of Central Government:

Tax collected at source shall be deposited to the credit of Central Government in accordance with the following provisions:

 

  • 1) In case tax is collected by an office of the Government:
    • Where tax is paid without production of an income-tax challan, on the same day when tax is collected.
    • Where payment of tax is accompanied by an income-tax challan, on or before 7 days from the end of the month in which tax is collected.
  • 2) In case tax is collected by non-government persons, within one week from the last day of the month in which tax is collected.

Mode of deposit TCS:

Taxes collected at source shall be deposited to the credit of the Central Government in following modes:

  • 1) E-Payment: E-Payment is mandatory for:
    • a) All the corporate assesses;
    • b) All assesses (other than company) to whom provisions of section 44AB of the Income Tax Act, 1961 are applicable. ​
  • 2) Physical Mode: By furnishing the Challan No. 281 in the authorized bank branch

Note:​​

When tax is collected by government office, it can remit the amount to the Central Government without production of an Income-tax challan and by making only book adjustment. In such a case, it has to furnish Form No. 24G to NSDL with prescribed time-limit.

Consequences if default is made in payment of TCS

A collector would face the following consequences if he fails to collect TCS or after collecting the same fails to deposit it to the credit of Central Government’s account:

  • a) Levy of interest: If the person responsible for collecting tax at source does not collect it or after collecting fails to pay it to the Government, he shall be liable to pay simple interest at the rate of 1% per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid and such interest shall be paid before furnishing the quarterly statement for each quarter.

 

  • b) Levy of Penalty: If any person fails to collect the whole or any part of the tax, then such person shall be liable to pay by way of penalty under Section 271CA, a sum equal to the amount of tax which such person failed to collect.

 

  • c) Prosecution: If a person fails to pay to the credit of the Central Government the tax collected by him he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.