TCS Payment Due Date for March 2025 – Important Reminder

As per the provisions of the Income Tax Act, 1961, Tax Collected at Source (TCS) is required to be deposited by the collector within a specific time frame. For the month of March 2025, the due date for depositing TCS by entities (other than Government offices) is 07th April 2025.

✅ What is TCS (Tax Collected at Source)?

TCS refers to the tax collected by a seller from the buyer at the time of sale of specific goods or provision of services, as specified under Section 206C of the Income Tax Act. The seller is then obligated to deposit this tax to the government.

🧾 Who is Required to Collect TCS?

The following persons/entities are required to collect TCS:

• Traders/dealers of goods specified under Section 206C (e.g., alcohol, scrap, minerals, timber, etc.)

• E-commerce operators collecting TCS under Section 52 of the CGST Act

• Sellers receiving consideration exceeding ₹50 lakhs from a buyer in a financial year under Section 206C(1H)

• Leasing/licensing entities, parking lot owners, toll plaza contractors, etc.

🔍 Key Sections Under Which TCS is Applicable:

SectionNature of TransactionRate206C(1)Sale of scrap, minerals, alcohol, etc.1% / 5%206C(1C)Lease of parking lots, mining, toll plazas2%206C(1F)Sale of motor vehicle exceeding ₹10 lakhs1%206C(1H)Sale of goods exceeding ₹50 lakhs per buyer0.1%

Note: These rates are subject to change as per amendments by the Government.

🗓️ Due Date for Deposit – Why 07th April Matters

• The TCS collected in the month of March 2025 must be deposited to the credit of the Central Government on or before 07th April 2025.

• Failure to do so results in interest liability and may attract penalty under Sections 201(1A) and 271CA.

📤 How to Deposit TCS

1. Generate Challan No. ITNS 281 via TIN-NSDL or e-Filing Portal

2. Choose Code 6CA for TCS payment.

3. Deposit using Net Banking/Debit Card/RTGS/NEFT.

4. File Form 27EQ (Quarterly Return of TCS) after depositing tax.

⚠️ Consequences of Non-Compliance

• Interest: 1% per month or part of the month under Section 201(1A)

• Penalty: Equivalent to the amount of tax collected but not deposited (Section 271CA)

• Disallowance of Expenses in Income Tax computation

• Prosecution: In extreme cases under Section 276BB

📌 Summary

• Due Date: 07th April 2025

• Applicable For: Collectors of TCS (non-Governmental)

• Related To: TCS collected during March 2025

• Compliance: Mandatory to avoid interest, penalty, or legal action

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