sec 206c of income tax act - Tcs
This query is : Resolved
05 July 2017
does section 206c of I.t. act abolished wef 1st July 2017?
05 July 2017
No, but certain omissions / additions in sun clauses were made through Finance Act,2017.
23 July 2025
Great question about **Section 206C — Tax Collected at Source (TCS)** and recent changes!
Here’s the latest update as per the **Finance Act, 2017** and beyond:
---
## 🔹 Is Section 206C abolished from 1st July 2017?
❌ **No, Section 206C is NOT abolished.**
* Section 206C continues to operate, but **some changes were made** in the **sub-clauses** regarding rates and applicability.
* The Finance Act, 2017 made **amendments** like:
* Changing rates of TCS
* Adding/removing certain items on which TCS applies
* Clarifying procedures
---
## 🔹 What about **TCS on sale of scrap**?
* **TCS on sale of scrap continues to apply**.
* **Rate** is generally **1%** on gross sale proceeds of scrap.
* The obligation to collect TCS on scrap sales **was not omitted** and remains in force.
---
## 🔹 Key Points to Note:
| Aspect | Status after 1 July 2017 |
| ---------------------- | ------------------------------------------------- |
| Is Sec 206C abolished? | ❌ No, it is still active |
| TCS on sale of scrap | ✅ Still applicable at 1% |
| Other amendments | Changes in rates and items covered in sub-clauses |
---
## 🔹 What should a dealer/seller of scrap do?
* Continue collecting TCS at prescribed rates on scrap sales.
* File TCS returns as usual.
* Deposit collected TCS within prescribed time.
---
If you want, I can share:
* Exact text of amended Sec 206C sub-clauses
* Latest TCS rate chart as per Income Tax rules
* Filing procedure reminders for TCS returns (Form 27EQ)
---
Feel free to ask!
Here’s the latest update as per the **Finance Act, 2017** and beyond:
---
## 🔹 Is Section 206C abolished from 1st July 2017?
❌ **No, Section 206C is NOT abolished.**
* Section 206C continues to operate, but **some changes were made** in the **sub-clauses** regarding rates and applicability.
* The Finance Act, 2017 made **amendments** like:
* Changing rates of TCS
* Adding/removing certain items on which TCS applies
* Clarifying procedures
---
## 🔹 What about **TCS on sale of scrap**?
* **TCS on sale of scrap continues to apply**.
* **Rate** is generally **1%** on gross sale proceeds of scrap.
* The obligation to collect TCS on scrap sales **was not omitted** and remains in force.
---
## 🔹 Key Points to Note:
| Aspect | Status after 1 July 2017 |
| ---------------------- | ------------------------------------------------- |
| Is Sec 206C abolished? | ❌ No, it is still active |
| TCS on sale of scrap | ✅ Still applicable at 1% |
| Other amendments | Changes in rates and items covered in sub-clauses |
---
## 🔹 What should a dealer/seller of scrap do?
* Continue collecting TCS at prescribed rates on scrap sales.
* File TCS returns as usual.
* Deposit collected TCS within prescribed time.
---
If you want, I can share:
* Exact text of amended Sec 206C sub-clauses
* Latest TCS rate chart as per Income Tax rules
* Filing procedure reminders for TCS returns (Form 27EQ)
---
Feel free to ask!
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