TCS ON SCRAP SALE..

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Discussion is about TCS rate on scrap sale for FY 2026-27 and applicable section. Views mention Section 394 of Income Tax Act, 2025 with 1% rate, while another reference suggests Code 1073 under Section 394(1) at 2%. Clarification needed on final applicable rate and classification.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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01 April 2026 TCS RATE ON SCRAP SALE FOR F.Y.2026-2027 AND UNDER WHICH SECTION NEEDS TO BE COLLECTED?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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01 April 2026 Applicable Section: Tax must be collected under Section 394 of the Income Tax Act, 2025. This new Act replaces the Income Tax Act, 1961, starting April 1, 2026.
Revised Rate: A uniform rate of 1% applies to scrap sales.