TCS (Tax Collected at Source) Rates for FY 2024-25 The TCS rates under Section 206C of the Income Tax Act vary based on the nature of the transaction. Below is a summary of the latest applicable rates: Nature of Transaction Section TCS Rate (with PAN/Aadhaar) TCS Rate (without PAN/Aadhaar) Sale of ARead more
TCS (Tax Collected at Source) Rates for FY 2024-25
The TCS rates under Section 206C of the Income Tax Act vary based on the nature of the transaction. Below is a summary of the latest applicable rates:
| Nature of Transaction | Section | TCS Rate (with PAN/Aadhaar) | TCS Rate (without PAN/Aadhaar) |
|---|---|---|---|
| Sale of Alcoholic Liquor, Tendu Leaves, Timber, Forest Produce | 206C(1) | 1% – 5% (varies) | 5% |
| Sale of Scrap | 206C(1) | 1% | 5% |
| Sale of Minerals (Coal, Lignite, Iron Ore) | 206C(1) | 1% | 5% |
| Sale of Motor Vehicle (above ₹10 lakh) | 206C(1F) | 1% | 5% |
| Sale of Goods (if turnover > ₹10 Cr & buyer purchases > ₹50 lakh in a year) | 206C(1H) | 0.1% (on excess amount) | 1% |
| Foreign Remittance under LRS (except for education/medical purposes) | 206C(1G) | 20% | 20% |
| Foreign Tour Package Purchase | 206C(1G) | 5% | 10% |
| Education Loan financed by a financial institution | 206C(1G) | 0.5% | 5% |
| Sale of Overseas Tour Program Package | 206C(1G) | 5% | 10% |
| TCS on E-commerce Operator (Payments to Seller) | 206C(1H) | 1% | 5% |
Important Points:
✔ PAN/Aadhaar is mandatory for lower TCS rates.
✔ TCS must be collected at the time of receiving payment from the buyer.
✔ TCS must be deposited by the 7th of the next month.
✔ The buyer can claim TCS credit while filing their Income Tax Return.
A trader is liable to deduct TCS (Tax Collected at Source) on the sale of goods under Section 206C(1H) of the Income Tax Act, subject to the following conditions: 1️⃣ Applicability of TCS on Sale of Goods (Sec 206C(1H)) ✔️ The seller must have a turnover exceeding ₹10 crore in the previous financialRead more
A trader is liable to deduct TCS (Tax Collected at Source) on the sale of goods under Section 206C(1H) of the Income Tax Act, subject to the following conditions:
1️⃣ Applicability of TCS on Sale of Goods (Sec 206C(1H))
✔️ The seller must have a turnover exceeding ₹10 crore in the previous financial year.
✔️ TCS applies when the buyer purchases goods worth more than ₹50 lakh in a financial year.
✔️ TCS is applicable only on the amount exceeding ₹50 lakh.
2️⃣ TCS Rate on Sale of Goods
✔️ 0.1% of the amount exceeding ₹50 lakh (If PAN is available).
✔️ 1% if the buyer does not provide a PAN or Aadhaar.
3️⃣ When to Collect & Deposit TCS?
✔️ TCS should be collected at the time of receipt of payment from the buyer.
✔️ It must be deposited with the government by the 7th of the next month.
4️⃣ Exemptions from TCS on Sale of Goods
❌ TCS is NOT applicable if:
✅ Example:
If a trader has a turnover of ₹12 crore in the last financial year and sells goods worth ₹60 lakh to a customer, TCS will be applicable on ₹10 lakh (₹60 lakh – ₹50 lakh).
TCS Calculation:
See less👉 TCS @0.1% on ₹10 lakh = ₹1,000 (if PAN is available).