Please remember, TCS is not a tax payment. It’s deducted in advance from your foreign remittances, which can be settled when you file your tax return with the government.
This means, TCS can be used by an individual to adjust the net tax liability while filing annual Income Tax Return. You must make sure that your tax document reflects this amount.
If you don’t know the rates at which tax is collected on foreign remittance in India, then you can read our earlier article “TCS rates on foreign remittances transactions”.
To check whether TCS is deposited against your PAN, you can refer following four documents;
- Form 26AS,
- Annual Information Statement (AIS),
- Tax Information Statement (TIS),
- Form 27D (TCS certificate).
Form 26AS can be accessed from your income tax account. You will find the deducted TDS and TCS amount in it with the amount remitted and the person who has deducted the tax.
AIS is a more comprehensive document than Form 26AS. “TIS” is a summary of Annual Information Statement (AIS).
Above three statements can be viewed from your income tax account. You can download it for your use.
Form 27D is a certificate issued by the person who has deducted TCS from your remittance. It’s a document that you should collect from your tax deductor as a proof that the entity responsible for TCS collection has deducted and deposited tax with the government.
Form 27D is similar to Form 16 (TDS certificate) issued by the employer and Form 16A (TDS certificate) issued in case of tax deducted from income other than salary.
You need to make sure that the TCS amount deducted from the remittance is the same in all these four documents.
In case of any discrepancy, you need to contract the tax deductor for rectification of the mistake. Tax deductor can file a TCS correction statement to rectify the mistake.
There is no time limit and no penalty levied for filing a correction statement. Your TCS deductor can file a correction statement anytime.
In case, your TCS deductor is unable to rectify before your filing tax return date, then you can file your return before the due date of 31st July with the available data to avoid a late filing fee of 5,000 rupees. Once the data is corrected by the tax deductor, you can revise your return to include the correct TCS amount reflecting in above four forms.
The other option you have is to file your income tax return on or before 31st December with the correct data by paying 5, 000 rupees.
If the tax deductor is unable to rectify before 31st December, then the last option is to go for a rectification request. Such request must be filed within a period of 4 years from the end of the financial year in which the intimation order under section 143(1)/Section 154 order with respect to the original ITR is passed.
