TCS Rate Chart: Tax collected at source (TCS) under Income Tax is the tax payable by a seller which he collects from the buyer at the time of sale. Section 206C of the Income-tax act governs the goods on which the seller has to collect tax from the purchasers.
Time of collection of TCS Earlier is earlier of the following period-
- At the time of debiting the amount payable by the buyer; or
- At the time of receipt of the amount from the buyer.
TCS Rate Chart for FY 2022-23
| Section | Nature of Payment | Rates |
|---|---|---|
| 206C (1) | Sale of Scrap | 1% |
| 206C (1) | Sale of Tendu Leaves | 5% |
| 206C (1) | Sale of Timber obtained under a forest lease or other mode | 2.50% |
| 206C (1) | Sale of Any other forest produce not being Timber or tendu leaves | 2.50% |
| 206C (1) | Sale of Minerals, coal lignite, Iron ore by a trader | 1% |
| 206C (1) | Sale of Alcoholic Liquor for Human Consumption | 1% |
| 206C (1C) | Lease or license of the Parking lot, toll plaza, mining & quarrying | 2% |
| 206C (1F) | Sale Value of Motor vehicle whether in cheque or in any other mode of receipt Exceeding Rs. 10 Lakhs per transaction | 1% |
| 206C(1G) | Foreign remittance through Liberalised Remittance Scheme (LRS) of exceeding Rs. 7 Lakh in a financial year if the remitted amount is out of loan obtained from any financial institution u/s 80E to pursue any education | 0.5% |
| 206C(1G) | Foreign remittance through Liberalised Remittance Scheme (LRS) of exceeding Rs. 7 Lakh in any other case | 5% |
| 206C(1G) | Selling of overseas tour package | 5% |
| 206C(1H) | Sale of goods (Other than those being exported) of value exceeding Rs. 50 Lakh where total Sale/ gross receipts/turnover from business exceeds Rs 10 Crore during immediately financial year | 0.1% |
However, there is no reduction of rates for Non- Residents. Also, where PAN or Aadhaar is not furnished, tax is required to be deducted or collected at higher rate due to non-furnishing of PAN or Aadhaar. For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%
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