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CA Vishnu Ram
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Enlightened
Asked: 2022-02-11T21:27:57+05:30 In:

What are the TCS rates?

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What are the TCS rates?
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    1. Enlightened Chartered Accountant

      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.

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