WorkIndex/Section 394 TCS Under New Act
New Act/TCS guide

Section 394 TCS Under New Act
Tax collection at source planning

Section 394 is treated as the new Act TCS reference for businesses that collect tax at source and need buyer-level records, challans and return reconciliation.

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Last fact-checked: 2026-05-30
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Fact-check notes

Last fact-checked: 2026-05-30

Tax caution: AY 2026-27 covers FY 2025-26 and continues under the Income-tax Act, 1961. New Act, new section and new form references should be verified against official utilities before filing.

Research note: This page uses Batch 15 competitor-gap research and supplied forward-looking 2026 topics. Treat future-dated form or section references as planning notes until official utilities confirm them.

Use this page as preparation guidance. A professional should verify the active law year, notification, portal utility and source records before filing or taking a tax position.

New Act/TCS guide

What this covers

Section 394 is treated as the new Act TCS reference for businesses that collect tax at source and need buyer-level records, challans and return reconciliation.

  • Covers TCS planning for specified sales, LRS-like cases and collector reporting workflows.
  • Buyer PAN, invoice value, rate and collection date must be reliable.
  • TCS return and certificate data should reconcile with sales records.
  • Refund/adjustment cases need careful documentation.
Use cases

Who this is for

  • Seller collecting TCS on specified goods.
  • Dealer or travel business checking TCS controls.
  • Finance team reconciling TCS credit complaints.
  • CA filing TCS returns.
Records

Documents and data to verify

  • Buyer details and invoices.
  • TCS rate and section mapping.
  • Challans and return acknowledgements.
  • Credit notes and cancellations.
Care points

Common mistakes to avoid

  • No buyer PAN validation.
  • Mismatch between sales and TCS returns.
  • Late deposit after collection.
  • Unclear treatment of refunds or cancellations.
Action

How to proceed

  • Confirm the applicable financial year, assessment year, taxpayer type, state and portal status before acting.
  • Reconcile portal data with books, AIS/Form 26AS, GST returns, contracts, invoices, bank statements and source documents.
  • Prepare a written computation, checklist, filing note or response with assumptions clearly stated.
  • Download acknowledgements, challans, workings and evidence after filing or submission.
Questions people ask

FAQs

Can WorkIndex help with this?

Yes. Post the facts and documents; relevant experts can quote for filing, advisory, reconciliation, registration, appeal support or ongoing compliance.

Is this page final legal advice?

No. Use it to prepare. A professional should verify the active law year, notification, portal utility and records before filing or taking a tax position.

What should I mention while posting?

Mention the year, state, form, deadline, amount involved, documents available, portal status and whether you need filing, correction, advisory or representation.

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