CBDT Exempts RBI from TCS Requirement under Section 206C(1F) of the Income Tax Act

Last updated: 18 October 2024

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The Central Board of Direct Taxes (CBDT) has issued a notification exempting the Reserve Bank of India (RBI) from collecting tax at source (TCS) on payments it receives. This exemption specifically applies to Section 206C(1F) of the Income Tax Act, which typically requires TCS on the sale of motor vehicles over Rs 10 lakh. The change aims to simplify financial transactions involving the RBI and ensure smoother compliance for businesses and tax professionals interacting with the central bank.

In a significant update, the Central Board of Direct Taxes (CBDT) has issued Notification No. 115/2024, dated October 16, 2024, exempting the Reserve Bank of India (RBI) from the requirement of tax collection at source (TCS) under Section 206C(1F) of the Income Tax Act, 1961. This exemption applies to payments received by the RBI and is effective from the date of the notification's publication in the Official Gazette. Section 206C(1F) mandates the collection of tax at source on the sale of moto

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FAQ :

The CBDT has exempted the Reserve Bank of India (RBI) from the requirement to collect tax at source (TCS) on payments it receives.

This exemption is related to Section 206C(1F) of the Income Tax Act, 1961.

Section 206C(1F) typically mandates the collection of tax at source on the sale of motor vehicles valued at over Rs 10 lakh.

The exemption benefits the Reserve Bank of India by removing the TCS requirement on payments it receives. It also aims to simplify compliance for entities interacting with the RBI.

The exemption is effective from the date of the notification's publication in the Official Gazette.

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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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