Time and Mode of payment of TCS to Government Account under Section 206C [Section 206(3) and Rule 37CA]

1. Time of Payment of TCS to Government Account

2. Mode of Payment of TCS to Government Account

1. Time of Payment of TCS to Government Account

All sums collected in accordance with the provisions of section 206C(1), or (1C) shall be paid to the credit of the Central Government as under.

1. Where tax is collected by an office of the Government

   1. on the same day where the tax is so paid without production of an income-tax challan; and

   2. on or before seven days from the end of the month in which the collection is made, where tax is paid accompanied by an income-tax challan.

2. In any other case

   Within One Week from the last day of the month in which the TCS Collection is made.

2. Mode of Payment of TCS to Government Account

(A) Where Office of the Government makes the Payment without production of Challan

(1) In case of an office of the Government where tax has been paid to the credit of the Central Government without the production of a Challan i.e. through book entry [Rule 37CA(3)]

Where tax has been paid to the credit of the Central Government without the production of a challan, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the collector reports the tax so collected and who is responsible for crediting such sum to the credit of the Central Government, shall submit a statement in Form No. 24G to the agency authorised by the Principal Director of Income-tax (Systems) in respect of tax collected by the collectors and reported to him.

(2) Time limit for furnishing statement in Form No. 24G [Rule 37CA(3A)] Statement in Form No. 24G shall be furnished—

1. on or before the 30th day of April where the statement relates to the month of March; and

2. in any other case, on or before 15 days from the end of relevant month.

(3) Manner of furnishing statement in Form No. 24G [Rule 37CA(3B)]

Statement in Form No. 24G shall be furnished in the following manner, namely:-

1. electronically under digital signature in accordance with the procedures, formats and standards specified under sub-rule (4); or

2. electronically along with the verification of the statement in Form 27A or verified through an electronic process in accordance with the procedures, formats and standards specified under sub-rule (4).

(4) Principal Director General of Income-tax (Systems) to specify the procedures, formats, for the purposes of furnishing and verification of the Statements of TCS [Rule 37CA(4)]

The Principal Director General of Income-tax (Systems) shall specify the procedures, formats and standards for the purposes of furnishing and verification of the statements and shall be responsible for the day-to-day administration in relation to furnishing of the information and verification of the statements.

Penalty for failure to deliver a Statement of TCS prescribed under section 206C(3A) [Clause (m) to sub-section (2) of section 272A]:

Clause (m) has been inserted sub-section (2) of section 272A to levy penalty for failure to deliver or cause to be delivered a statement within the time as may be prescribed under section 206C(3A). The amount of penalty shall be Rs.100 per every day during which the failure continues.

However, the amount of penalty for failure in relation to statement under section 206C(3A) shall not exceed the amount of tax deductible.

(B) Where the Tax (TCS) is to be deposited accompanied by Income Tax Challan:

The tax collected under sub-section (1) or sub-section (1C) or sub-section (1D) [(ID) omitted w.e.f. 1.4.2017] or sub-section (1F) of section 206C shall be deposited to the credit of the Central Government by remitting it within the time specified in clause (b) of sub-rule (1) or in sub-rule (2) into any branch of:

(i) the Reserve Bank of India, or

(ii) the State Bank of India, or

(iii) any authorised bank.

(C) Where Tax (TCS) is to be deposited Electronically by Person referred to in rule 125(1):

The amount collected shall be electronically remitted into the Reserve Bank of India or the State Bank of India or any authorised bank accompanied by an electronic income-tax challan.

Who is required to make electronic payment of tax [Rule 125(1)]

The following persons shall pay tax electronically on or after 1.4.2008:—

1. a company; and

2. a person (other than a company), to whom provisions of section 44AB are applicable.