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.
Self-generated assets are those which: Are not purchased or acquired for a price Are created or developed over time by the assessee's own effort or business activities Common Examples: Goodwill of a business Brand name Tenancy rights Route permits Loom hours Right to manufacture or carry on a profesRead more
Self-generated assets are those which:
Are not purchased or acquired for a price
Are created or developed over time by the assessee’s own effort or business activities
Common Examples:
Goodwill of a business
Brand name
Tenancy rights
Route permits
Loom hours
Right to manufacture or carry on a profession
Section 55(2)(a) says that “Cost of acquisition” of self-generated assets like goodwill, trademark, brand name, tenancy rights, etc., shall be taken as Nil if it is self-generated.
Similarly, Section 55(1)(b) provides that “The cost of improvement” shall also be Nil, if the asset is self-generated.
Capital Gain = Full Value of Consideration – (Cost of Acquisition + Cost of Improvement + Expenses on Transfer)
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