Under the scheme ‘Electronic Filing of Returns of Tax Collected at Source Scheme, 2005’, the corporate and Government deductors have to pay electronically or physically to NSDL.
It is mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish their TDS returns in electronic form (e-TDS return). From F.Y. 2004-2005 onwards furnishing TDS returns in electronic form is also mandatory for government deductors in addition to corporate deductors.
It is mandatory for corporate and government deductors to furnish their TCS returns in electronic form (e-TCS return) from F.Y. 2004-2005 onwards.
TDS and TCS
TDS refers to Tax Deduction at Source. The third parties deduct tax at source and then deposit it at pre-determined bank branches.
TCS means collection of tax at source by the seller (collector) from the buyer (collectee/payee) of the goods (specified u/s 206C of Income-tax Act, 1961, like timber obtained under forest lease, scrap, any other forest produce not being timber or tendu leaves, etc.)