TCS should be treated on par with TDS and credit for TCS to be given from assessed tax for calculation of interest u/s 234B

Collection of tax at source by the seller is similar to deduction of tax at source by the payer. Such tax collection at source is paid to the government on behalf of the purchasers of these goods.

Thus, such tax collected at source is to be treated on par with tax deducted at source and therefore, credit for TCS should be given from tax on assessed income to compute shortfall in payment of advance tax and for calculation of interest under section 234B - ITO v. LAKSHMI SRINIVASA WINES, NALGONDA [2012] 20