TDS, TCS and Advance tax are methods for recovery and collection of taxes adhering to the principle 'pay as you earn'. These measures regulate the generation of revenue for Government coffers at the earliest possible time point. Recovery of taxes via TDS, TCS and Advance tax ensures security to the Government from the risk of losing tax in case the taxpayer's financial position worsens by the time the assessment gets finalised. Another objective of these provisions is to put check on tax evasion. Provisions relating to TDS, TCS and Advance tax are therefore of paramount importance for revenue and equally so for assessees from compliance point of view. While appreciating the legal and procedural aspects relating to TDS, TCS and Advance tax provisions, the relevant Statutory Provisions, Rules, Forms, Circulars, Notifications, Instructions and Case Law are all equally important. The TDS and TCS Compliance becomes quite tedious, complex and cumbersome giving rise to numerous controversial situations as regards interpretation and application of the related provisions. Anyone concerned with TDS or TCS is required to keep his eyes open to totality of the substantive and procedural aspects. Further, TDS and TCS provisions being practice specific and generally procedural in nature, lead to frequent interactions of tax advisors with their clients and the department, requiring consultations of TDS specific law along with the latest procedural aspects.

The present book provides a complete theory as well as practice guide aimed at meeting out the TDS, TCS and Advance tax obligations alongwith apt analytical study of statutory provisions. It forms a class by itself for it is concise yet comprehensive, practical without ignoring basics of theoretical aspects including related case law, and also to the point for a quick and easy consultation, enabling the readers to inter alia derive precise, accurate and correct informations without loss of their valuable time.

The Finance Act, 2022 has inserted a new section 194R in the Income Tax Act w.e.f. 1-7-2022 with a view to provide a new obligation regarding deduction of tax at source on benefit or perquisite arising while carrying out business or exercising profession. The scope and implications of section 194R are very wide and likely to give rise to many controversies as regards applicability of this new provision. The present Book incorporates a new Section F in Part II of Book 1 containing a detailed commentary on TDS under section 194R with a view to providing quick solution regarding various issues arising while complying with TDS obligation under section 194R.

The entire subject matter is divided into three Books --

Book 1


Tax Deduction at Source (TDS)

Book 2


Tax Collection at Source (TCS)

Book 3


Advance Tax

Book 1 is divided in Five Parts each respectively, dealing with --

Part I


TDS Ready Referencer

Part II


TDS in Regard to Certain Payments



Section A


TDS from Salary Related Payments [Sections 192, 192A]



Section B


TDS from Interest and Dividend [Sections 193, 194, 194A]



Section C


TDS from Winnings from Lottery online gaming, Horse Races, Etc. [Sections 194B, 194BA, 194BB]



Section D


TDS from Payment to Contractors [Section 194C]



Section E


TDS from Certain Specified Payments



Section F


TDS on Benefit or Perquisite [Section 194R]

Part III


Non-Residents Specific TDS Obligations [Sections 194E, 194LB, 194LC, 194LD, 195, 196A, 196B, 196C and 196D]

Part IV


Miscellaneous TDS Specific Provisions

Part V


Consequences of Violation of TDS Provisions

This book, stands updated in the light of all the amendments brought about by the Finance Act, 2023. Further, practically speaking all judicial decisions, Circulars, Notifications, etc., as available upto 30th April, 2023 have also been scanned through and, if needed, incorporated at the relevant places so as to make it up-to-date in all its dimensions and aspects.

Presentation of Charts, Tables, etc. wherever needed, will work as a ready referencer. Real life Queries and Case Studies providing solutions of various practical problems associated with TDS and TCS are spread over the entire text at their related places which further enhance the practical utility of this Book.

I have tried to make it an error-free and quality publication. I shall however be grateful for any valuable and constructive suggestions from my esteemed readers.



8 MAY 2023