Question
What is the difference between TDS and TCS?
Answer
Bottom line: TDS is deducted by the payer on certain payments; TCS is collected by the seller on certain sales.
1. TDS
The payer withholds tax on salary, contractor, rent or professional payments and deposits it against your PAN.
2. TCS
The seller collects extra tax on specified receipts — for example 1% on scrap under 206C(1), or on foreign remittances above ₹10 lakh under LRS (206C(1G)).
3. A recent change
The old TCS on sale of goods above ₹50 lakh (206C(1H)) was withdrawn from 1 April 2025.
Work out any deduction with our TDS Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.