What is the difference between TDS and TCS?

                                         Difference Between TDS & TCS

TAX DEDUCTED AT SOURCE	TAX COLLECTED AT SOURCE
TDS is the amount deducted before the payment of money by the employer to the employee, payment of rent, etc.	TCS is the amount collected at the time of selling specified items as stated by the tax department of the government of India.
TREATED AS
Tax Deducted at Source is treated as an expense to the company.	Tax Collected at Source is treated as an income to the company.
APPLICABLE FOR
TDS is mainly applicable to salary payments, interest payments, rents, the professional fee paid, lotteries, etc.	TCS is mainly applicable on alcoholic beverages, forest products, timber selling, mines and quarries, toll plaza, etc.
APPLICABLE WHEN
TDS is applicable if the expenses cross the specified limit as prescribed by the tax department of the government of India.	TCS is applicable if the sale of the certain goods which are specified by the tax department of the government of India.
EXAMPLES
Mr.A has to pay the salary of RS.1000 to the Mr.B tax rate is 10%, then Mr.A will pay 900 to the Mr.B as a salary and the remaining 100 is deposited with the government.	Mr.X sold goods to Mr.Y for RS.1000 and here the TCS rate is 3%, then Mr.X collects Rs.1030 from Mr.Y and he keeps R.s.1000 and deposits Rs.30 with the government.

Almost every country in the world have tax systems embedded in their governance and India is one of the countries which follows both the systems of Tax Collected at Source (TDS) and Tax Deducted at Source, whereas many countries in the world only follow Tax Deducted at Source (TDS) system.