The government has issued new rules for TCS and TDS in view of Corona virus epidemic from 1 October. But how are these new TDS and TCS rules beneficial? Now you will be charged 0.75% tax in cases of TCS and TDS but it has some limitations. If you are in this way of limit then you will not be charged TCS and TDS.
Separate rules have been framed for TCS and TDS for e-commerce personal and businessmen. Which you need to know. Also, if you do not have PAN card and Aadhaar card, then it is also important to know in which way TDS and TCS rules will apply.
TCS and TDS to be sold over 50 lakh
Suppose you have sold more than ₹ 5000000 in this current financial year, then you have to pay 0.75 percent ECS and TDS tax. However, the government has said that these new rules will come into effect from 1 October. But there is a trick in this, if you have sold more than ₹ 5000000 for the entire year from April 1, then you must pay 0.7 5% TCS and TDS. There is no relief in this.
However if your sales are less than ₹ 5000000 then the government will give you a discount in TCS and TDS to promote business.
How will TCS and TDS rules apply for e-commerce
Now we talk about commerce here if you have an ecommerce portal and if you are selling there, then you have to pay TCS and TDS tax on selling more than ₹ 5000000. On the other hand, if you are selling your goods on an ecommerce platform individually and you are selling more than ₹ 500000, then you have to pay 0.75% TDS and TCS.
What if you do not have PAN and Aadhaar Card registered
Now the question arises here that if you do not have PAN card and Aadhaar card registered, how will TDS and TCS be applied to you? I want to advise you to register PAN card and Aadhaar card here. Otherwise, you may have to pay additional tax of up to 5% here. In such a situation, if you want to do business, then the Aadhaar card and PAN card are almost mandatory. You may have to pay up to 5% tax on TDS and TCS items. Which is much higher than 0.75%.