Understanding TCS Payment and Its Due Date – April 7, 2025

Tax Collected at Source (TCS) is an important compliance requirement under the Income Tax Act, applicable to specific transactions where sellers collect tax from buyers at the point of sale. Businesses and individuals liable for TCS must ensure timely deposits to avoid penalties.

For March 2025, the due date for TCS payment is April 7, 2025. In this blog, we will explore TCS payment, its applicability, compliance requirements, and the consequences of missing the deadline.

What is TCS (Tax Collected at Source)?

TCS is a tax collected by the seller at the time of sale of specified goods or services. The collected tax is then deposited with the government. The concept of TCS is primarily to track high-value transactions and ensure tax compliance.

Some key transactions where TCS is applicable include:

  • Sale of motor vehicles above ₹10 lakh
  • Sale of scrap, minerals, or forest produce
  • Foreign remittances under the Liberalized Remittance Scheme (LRS)
  • E-commerce transactions under Section 206C(1H)

Due Date for TCS Payment – March 2025 Transactions

Businesses collecting TCS in March 2025 must deposit it with the government by April 7, 2025. Failing to do so may attract interest and penalties under the Income Tax Act.

Who Needs to Pay TCS?

  • Businesses or individuals responsible for collecting tax at the source
  • E-commerce platforms collecting TCS from sellers
  • Dealers selling specified goods under TCS provisions

Process of TCS Payment

  1. Collecting TCS – The seller collects the applicable TCS amount from the buyer.
  2. Deposit to Government – The collected TCS must be deposited through the Income Tax Department’s online portal or designated banks before the due date.
  3. Filing TCS Returns – After making the payment, businesses must file TCS returns (Form 27EQ) on a quarterly basis.

Consequences of Missing the Due Date

If a business fails to deposit TCS within the due date, the following penalties may apply:
✅ Interest Charges – 1% per month or part of the month on the outstanding TCS amount.
✅ Penalty under Section 271CA – The Assessing Officer may levy a penalty equal to the unpaid TCS amount.
✅ Prosecution Risk – Continuous non-compliance may lead to legal action.

How Taxla Services Can Help?

At Taxla Services, we assist businesses with seamless tax compliance, including TCS calculation, payment, and return filing. Avoid penalties and legal hassles by ensuring timely TCS payments with our expert guidance.

📞 Contact us: +91 9600076134 / 6374812546
📧 Email: auditsiva2@gmail.com
🌐 Website: www.taxlaservices.com

For all your tax-related needs, trust Taxla Services – your reliable tax compliance partner.

#TCSPayment #TaxFiling #TaxCompliance #IncomeTax #TaxlaServices #Finance #BusinessCompliance



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