Chandani Nawalkha
Quick Summary
There are close to 32 items of income/payments on which tax is deductible at source (TDS) and 11 items on which tax has to be collected at source (TCS). However, this position has now been changed after the introduction of a new sub-section (1H) in Section 206C of the Income Tax Act vide Finan
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
Section 206C(1H) was introduced to collect tax at source on the sale of goods, applying to sellers whose annual turnover exceeds ₹10 crore.
TCS applies when the sale consideration received from a buyer exceeds ₹50 lakh in a financial year.
The rate of TCS is 0.1% of the sale consideration exceeding ₹50 lakh. This was 0.075% up to 31st March 2021.
This provision came into effect from 1st October 2020.
No, Section 206C(1H) does not apply to transactions in securities and commodities traded through recognised stock exchanges or cleared by recognised clearing corporations.
The ₹50 lakh threshold is calculated based on the sale consideration received from a buyer from the beginning of the financial year (1st April 2020), and TCS is applicable on amounts received on or after 1st October 2020 that exceed this limit.
CAclubindia
