TCS
Also called Tax collected at source
Tax collected at source: tax a seller or your bank collects from you at the time of payment, counted as tax you've already paid.
TCS, or tax collected at source, is tax collected from you when you pay, rather than cut from money paid to you like TDS. The common case for investors is a large foreign remittance under LRS. It isn’t lost money: you claim it in your return. See how to invest in US stocks from India.
Questions people ask
What is the full form of TCS?
TCS stands for tax collected at source. The person receiving your payment, such as your bank on a foreign remittance, collects a small tax from you and deposits it with the government in your name.
What is the difference between TCS and TDS?
TDS is cut by someone paying you, like a bank on FD interest. TCS is collected by someone you're paying, like your bank when you send money abroad. Both count as tax you've already paid.
Can I get TCS back?
Yes. The law treats TCS as tax paid on your behalf. It shows in your Form 26AS, and you claim it in your income tax return, where it reduces the tax you owe or comes back as a refund.
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