Tax collected at sources

1) When tax has to be collected at Source?

Tax has to be collected at source by the seller, while debiting the amount payable by the buyer to buyer's account (or) at the time of receipt of such amount from the buyer in cash or by issue of cheque/draft or by any other mode, whichever is earlier.

2) On what amount is the rate of tax collection to be applied?

The rate of tax should be applied as a percentage on the purchase price.

3) Does the person collecting tax at source have to issue any certificate?

Within 10 days from the date of debit or receipt of the amount, the person collecting tax should issue a certificate of tax collected.The Certificate shall be in Form No.27D

4) Is it possible to file returns on computer media?

The return of tax collection at source may be filed on computer media such as floppies, disc, magnetic cartridge tapes, CD-ROMs etc. Now e-filing of return is mandatory.

5) What are the due dates for filing of returns of collecting tax at source?


For the period ending March 31st                                    30th April
For the period ending September 30th                           31st October