TCS Calculator

TCS (Tax Collected at Source) is a tax collected by the seller from the buyer at the time of sale of specified goods or services under Section 206C of the Income Tax Act. Unlike TDS where the payer deducts tax, in TCS the seller collects an additional amount as tax from the buyer and deposits it with the government. TCS applies to transactions like sale of liquor, tendu leaves, timber, scrap, minerals, motor vehicles above ₹10 lakh, overseas travel packages, and sale of goods above ₹50 lakh (Section 206C(1H)). The collected TCS can be claimed as a credit by the buyer while filing their Income Tax Return.

TCS rates under Section 206C vary by category: Alcoholic liquor for human consumption — 1%, Tendu leaves — 5%, Timber obtained under forest lease — 2.5%, Timber by any other mode — 2.5%, Forest produce other than timber and tendu leaves — 2.5% (1% for SC/ST), Scrap — 1%, Minerals (lignite, coal, iron ore) — 1%, Motor vehicle above ₹10 lakh — 1%, Overseas travel package — 5%, Sale of goods above ₹50 lakh (Section 206C(1H)) — 0.1%, E-commerce transactions (Section 206C(1F)) — 0.5% (increased to 1% from October 2025). If the buyer does not provide PAN/Aadhaar, TCS is collected at double the applicable rate or 5%, whichever is higher.

Section 206C(1H), introduced from October 1, 2020, mandates that a seller whose total turnover exceeds ₹10 crore in the previous financial year must collect TCS at 0.1% on sale of goods exceeding ₹50 lakh to a buyer in the current financial year. TCS is collected only on the amount exceeding ₹50 lakh. For example, if goods worth ₹80 lakh are sold, TCS applies only on ₹30 lakh (₹80 lakh minus ₹50 lakh threshold). This section does not apply to imports, e-commerce transactions (covered under 206C(1F)), or transactions where TDS is already deductible. The buyer must have a PAN for the 0.1% rate; otherwise, 1% TCS applies.

Section 206C(1F) requires e-commerce operators to collect TCS at 1% (increased from 0.5% effective October 1, 2025) on the net taxable value of goods or services supplied through their platform by e-commerce participants. This applies to operators whose gross merchandise value exceeds ₹50 lakh in the previous financial year. TCS is collected at 1% (0.5% for transactions with PAN but before Oct 2025) on the sale value after deducting returns and cancellations. E-commerce operators like Amazon, Flipkart, and Swiggy collect this TCS from sellers before remitting payments, and sellers can claim the TCS credit while filing their ITR.

TCS (Tax Collected at Source) and TDS (Tax Deducted at Source) are both advance tax mechanisms but differ in key aspects. TDS is deducted by the payer (buyer/service recipient) before making payment, while TCS is collected by the seller/service provider from the buyer at the time of sale. TDS applies to payments like salary, rent, professional fees, and interest, whereas TCS applies to sale of specified goods like scrap, minerals, motor vehicles, and overseas packages. TDS rates are specified under Sections 192-206AA, while TCS rates are under Section 206C. Both TDS and TCS can be claimed as tax credit while filing the Income Tax Return.

The TCS Calculator helps businesses and individuals accurately compute the Tax Collected at Source on various transactions. Simply select the TCS category (scrap, motor vehicle, overseas travel, sale of goods above ₹50 lakh, e-commerce), enter the transaction amount and buyer details (PAN available or not), and the calculator instantly shows the TCS amount, net receivable, and total payable. This tool is essential for sellers to determine the correct TCS to collect, for buyers to know their TCS credit, and for e-commerce operators to comply with Section 206C(1F). It also helps in estimating total tax liability for better financial planning.

Yes, the TCS amount collected from you can be claimed as a tax credit while filing your Income Tax Return. The TCS credit is reflected in your Form 26AS and AIS (Annual Information Statement) on the Income Tax Portal. You can adjust the TCS credit against your total tax liability (advance tax, self-assessment tax, or regular tax). If the TCS exceeds your total tax liability, you can claim a refund. It is important to verify that the TCS entries in your Form 26AS match the certificates (Form 27D) issued by the collector to avoid mismatches and ensure smooth processing of your ITR.

TCS is not collected in certain situations: when the buyer is the Central Government, State Government, embassy, or a consular post; when the buyer provides a declaration that the goods are for manufacturing, processing, or production (not trading), and not for use in personal consumption (applicable for scrap, minerals, and forest produce); when the buyer is an Indian resident for the purpose of Section 206C(1H) and has a PAN; and when the transaction value is below the specified threshold (₹50 lakh for Section 206C(1H), ₹10 lakh for motor vehicles). The TCS Calculator automatically applies these exemptions based on the inputs provided.