TCS on Sale of Goods Section 206C(1H)- Income Tax Act, 1961

This discussion clarifies the applicability of Tax Collected at Source (TCS) under Section 206C(1H) of the Income Tax Act, 1961. It explains that TCS on the sale of goods becomes applicable once a single buyer's turnover exceeds Rs. 50 lakhs in a financial year. The example provided shows that until the threshold is crossed, TCS is not required, but it will be collected on all subsequent receipts from that buyer once the limit is breached.