TCS (tax collected at source, India)

Indian income tax that a bank or seller collects from the payer at the time of a transaction, as a prepayment of the payer's tax. Under the Income-tax Act, 2025, section 394 (formerly section 206C), an authorised dealer collects it on remittances by resident individuals under the Liberalised Remittance Scheme above a threshold, at a higher rate for most purposes and a lower rate for education and medical treatment. TCS is collected on a resident's remittance abroad; TDS is deducted by a payer from income paid to someone.