Upload Date

31/05/2025

Category-1

Every person, being a seller, shall at the time of debiting the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer, whichever is earlier, collect from the buyer of any goods of the nature specified in column (1) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (2) of the said Table, of such amount as income-tax:

Nature of Goods Rate (in %)
Alcoholic liquor for human consumption 1
Tendu leaves 5
Timber or any other forest produce (not being tendu leaves)] obtained under a forest lease 2
Timber obtained by any mode other than a forest lease 2
Timber obtained by any mode other than a forest lease 2
Scrap 1
Minerals, being coal or lignite or iron ore 1

Category-2

Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as "licensee or lessee" ) for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax:

Nature of contract or licence or lease, etc. Rate (in %)
Parking lot 2
Toll plaza 2
Mining and Quarrying 2

Category-3

Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle or any other notified goods (effective from 01-01-2025) of the value exceeding Rs. 10,00,000, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 1% of the sale consideration as income-tax.

Note: The Central Board of Direct Taxes (CBDT) has notified the following 10 goods, which shall be subject to 1% TCS under section 206C(1F) effective from 22-04-2025. [Notification No. 36/2025]

  1. Wristwatches
  2. Art items such as antiques, paintings, and sculptures
  3. Collectibles, including coins and stamps
  4. Yachts, rowing boats, canoes, and helicopters
  5. Sunglasses
  6. Handbags and purses
  7. Pair of shoes
  8. Sportswear and equipment like golf kits or ski wear
  9. Home theatre systems
  10. Horses used for racing or polo

Category-4

Every person, being a authorised dealer, shall collect tax at the rate of 5% from the remittance under the Liberalized Remittance Scheme of the RBI:

Notes:

(a) No TCS is required if amount of remittance doesn’t exceed Rs. 10 lakhs.

(b) Where the amount is remitted for any purpose other than education or medical treatment, the tax shall be collected at the rate of 20% of amount remitted in excess of Rs. 10 lakh.

Category-5

Every person, being a seller of an overseas tour programme package, shall collect tax at the rate of the rate of 5% on payments up to Rs. 10 lakhs and amounts exceeding Rs. 10 lakhs will be subject to 20% TCS.

Category-6

Every person, being a seller who receives any amount as consideration for sale of any goods, shall collect tax at the rate of 0.1% if the aggregate value of such sale in any previous year exceeds Rs. 50 lakh.

Note: this provision is not applicable w.e.f. 01-04-2025.

Collection of Tax at Higher Rate for non-filers of Return**

The Finance Act, 2021 has inserted a new section 206CCA for collection of tax at higher rate if collectee failed to furnish return for specified period. This provision shall apply and the tax shall be collected at the higher rates prescribed under this provision if the following conditions are satisfied:

a) The collectee has not furnished the return of income for the assessment years relevant to the previous years immediately prior to the previous year in which tax is required to be collected;

b) The due date to file such return of income, as prescribed under Section 139(1), has expired; and

c) The aggregate amount of tax deducted and collected at source is Rs. 50,000 or more in said previous year.

The tax shall be collected at the higher of the following rates:

(a) Twice the rate specified in the relevant provision of the Act; or

(b) 5%.

Note 1: The provisions of section 206CCA doesn’t apply to:

a) A non-resident who does not have a PE in India.

b) A person who is not required to furnish the return of income for the assessment year relevant to the said previous year and is notified by the Central Government.

Note 3: If both the provisions of section 206CC and section 206CCA are applicable, that is, collectee has neither furnished his PAN to the collector nor has he furnished his return of income for the specified period, the tax shall be collected at the rates provided in section 206CC or section 206CCA, whichever is higher

** The provisions of section 206CCA are omitted w.e.f. 01-04-2025

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