Advance tax, TDS, TCS — three forms of tax you pay before filing ITR

Quick frame: When you file your ITR, the IT department already has receipts for tax you paid throughout the year — under three labels. TDS is what others deducted from payments to you. TCS is what others collected on your spending. Advance tax is what you paid directly. The ITR reconciles all three against your final liability.

TDS — Tax Deducted at Source

Your employer deducts TDS from salary. Bank deducts 10% TDS on FD interest if it crosses ₹40k a year (₹50k for seniors). Buy property over ₹50L — buyer deducts 1% under section 194-IA. Pay rent over ₹50k/month as an individual — tenant deducts 5% under 194-IB.

These show up in Form 26AS and the new AIS. Every TDS entry has a TAN — validate with the TAN Validator.

Calculators:

• TDS on Property (194-IA)
• TDS on Rent (194-IB)

TCS — Tax Collected at Source

The biggest one for individuals: TCS on foreign remittance under LRS:

• 0.5% — education funded by Indian education loan
• 5% — self-funded education / medical (above ₹7L)
• 5% — tour packages up to ₹7L (lifetime in FY), 20% above
• 20% — investment / gifts / other (above ₹7L)

Compute exact: TCS on LRS Calculator.

TCS isn't a cost — it's refundable. Shows up in AIS / 26AS as a credit, claim in your ITR.

Advance tax — what YOU pay

If liability after TDS is ≥ ₹10,000, you pay advance tax in 4 instalments:

Due	Cumulative
15 Jun	15%
15 Sep	45%
15 Dec	75%
15 Mar	100%

Miss the schedule → 234C (1% × 3 months on shortfall, Q4 only 1 month). Pay <90% by 31 Mar → 234B (1%/month from Apr 1). File late → 234A (1%/month from due date). They stack.

Advance Tax Calculator handles the schedule and 234B/C interest.

Self-assessment tax

When filing ITR:

Total tax payable − TDS (from 26AS) − TCS (from 26AS) − Advance tax paid = Balance / Refund

If positive, pay before filing. Self-Assessment Tax Calculator handles this.

Who can skip advance tax

• Senior citizens (60+) without business / professional income.
• Pure-salaried whose employer TDS already covers everything.
• 44AD / 44ADA presumptive scheme — pay full liability by 15 Mar in one shot.

For freelancers: Section 44ADA. For small businesses: Section 44AD.

FAQ

Q. Form 16 shows different TDS than Form 26AS — why? A. They should match. If not, employer's TDS return is wrong. Ask them to revise. Use the Form 16 Reader to extract numbers.

Q. Bank deducted TDS on my FD — I'm below exemption. How to avoid? A. Submit Form 15G (under 60) or 15H (60+) at the start of each FY. Check eligibility: Form 15G/15H Checker.

Q. I paid 20% TCS on a foreign remittance — is that gone? A. No. Credit in your AIS — claim in ITR like any other TDS.