The 60-second version
Section 206CA imposes penalty equal to TCS not collected under Section 206C — returning NRIs running dealerships must file 27EQ on time and deposit TCS by due date to avoid 206CA.
206CA penalty equals uncollected TCS — interest under 206C(7) runs from due date
Section 206CA penalizes failure to collect TCS under Section 206C — penalty amount equals tax not collected, subject to reasonable cause under Section 273B.
Returning NRIs who miss 206C(1H) or 206C(1G) collection must pay TCS with interest under Section 206C(7) and file revised 27EQ.
Seller TCS lane: Section 206C(1H) guide for collection mechanics.
TCS failure matrix
| Provision | Consequence | Remedy |
|---|---|---|
| 206CA | Penalty = uncollected TCS | Pay + revise 27EQ |
| 206C(7) | Interest on delay | Challan with interest |
| 273B | Reasonable cause | AO waiver request |
| 206CCA | Higher rate missed | Collect at correct rate |
Corrective flow
Identify gap
Uncollected TCS invoices.
Pay TCS
Challan + interest.
Revise 27EQ
Correct statement.
Issue cert
TCS certificate to party.
273B
Reasonable cause if applicable.
Flow
206CA kit
- TAN active.
- Missed invoices.
- Challan.
- Revised 27EQ.
- 273B submission.
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Prosecution
Willful failure may attract prosecution under Section 276BB — treat 27EQ deadline as hard compliance date.
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0 of 4 checked
206CA vs 206C(7)?
206CA is penalty; 206C(7) is interest on delayed TCS deposit — both may apply.
273B relief?
Reasonable cause may waive penalty — document system failure or buyer PAN refusal.
vs 206C(1H)?
206C(1H) is collection rule; 206CA is penalty for not collecting.
RNOR?
TCS collection obligation applies if you are the liable collector under 206C.
Revise 27EQ?
File correction statement after paying missed TCS with interest.
206CCA?
Higher TCS rate if buyer is specified non-filer — see 206CCA guide.
Your tax year is already running.
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