If the payment exceeds a specific limit, TDS or Tax Collected at Source is the amount deducted by a company on payments like salary, commission, rent, brokerage, etc. TCS or Tax Collected at Source is the amount collected by a seller, when you purchase an item for sale. The amount deducted by your employer as tax from your salary is TDS. The amount deducted by a seller as tax when you buy items, like a bicycle, is TCS.