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​​​​​​TCS Rates

Category-1

Every person, being a seller, shall at the time of debiting the amount payable by the buyer to the account of the buyer or at the time of receipt of such amount from the said buyer, whichever is earlier, collect from the buyer of any goods of the nature specified in column (1) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (2) of the said Table, of such amount as income-tax:

Nature of GoodsRate (in %)

  • Alcoholic liquor for human consumption1
  • Tendu leaves5
  • Timber obtained under a forest lease2.5
  • Timber obtained by any mode other than a forest lease2.5
  • Any other forest produce (not being timber/tendu leaves)2.5
  • Scrap1
  • Minerals, being coal or lignite or iron ore1

Category-2

Every person, who grants a lease or a licence or enters into a contract or otherwise transfers any right or interest either in whole or in part in any parking lot or toll plaza or mine or quarry, to another person, other than a public sector company (hereafter in this section referred to as “licensee or lessee” ) for the use of such parking lot or toll plaza or mine or quarry for the purpose of business shall, at the time of debiting the amount payable by the licensee or lessee to the account of the licensee or lessee or at the time of receipt of such amount from the licensee or lessee, whichever is earlier, collect from the licensee or lessee of any such licence, contract or lease of the nature specified in column (2) of the Table below, a sum equal to the percentage, specified in the corresponding entry in column (3) of the said Table, of such amount as income-tax:

    • Nature of contract or licence or lease, etc.Rate (in %)
    • Parking lot2
    • Toll plaza2
    • Mining and Quarrying2

Category-3

Every person, being a seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding Rs. 10,00,000, shall, at the time of receipt of such amount, collect from the buyer, a sum equal to 1% of the sale consideration as income-tax.

 

Category-4

Every person, being a authorised dealer, shall collect tax at the following rates from the remittance made out of India under the Liberalized Remittance Scheme of the RBI:

a)         At the rate of 0.5%, where the amount being remitted is towards repayment of loan, which is obtained from a banking company (including any bank or banking institution) or any other financial institution notified by the Central Government under section 80E, for the purpose of pursuing any education. If the buyer does not furnish his PAN, the tax shall be collected at the rate of 5% in accordance with Section 206CC;

b)         Where the amount is remitted for any other purpose, the tax shall be collected at the rate of 5% if the buyer has furnished his PAN, otherwise tax shall be collected at the rate of 10% in accordance with Section 206CC.

Category-5

Every person, being a seller of an overseas tour programme package, shall collect tax at the rate of 5% if the buyer has furnished his PAN, otherwise tax shall be collected at the rate of 10% in accordance with Section 206CC.

 

Category-6

Every person, being a seller who receives any amount as consideration for sale of any goods, shall collect tax at the rate of 0.1% if the aggregate value of such sale in any previous year exceeds Rs. 50 lakh.

Collection of Tax at Higher Rate for non-filers of Return

The Finance Act, 2021 has inserted a new section 206CCA for collection of tax at higher rate if collectee failed to furnish return for specified period. This provision shall apply and the tax shall be collected at the higher rates prescribed under this provision if the following conditions are satisfied:

a) The collectee has not filed the return of income for 2 assessment years relevant to the previous years immediately prior to the previous year in which tax is required to be collected;

b) The due date to file such return of income, as prescribed under Section 139(1), has expired; and

c) The aggregate amount of tax deducted and collected at source is Rs. 50,000 or more in each of these 2 previous years.

The tax shall be collected at the higher of the following rates:

(a) Twice the rate specified in the relevant provision of the Act; or

(b) 5%.

Note 1: The provisions of section 206CCA doesn’t apply to a non-resident who does not have a PE in India.

Note 2: If both the provisions of section 206CC and section 206CCA are applicable, that is, collectee has neither furnished his PAN to the collector nor has he furnished his return of income for the specified periods, the tax shall be collected at the rates provided in section 206CC or section 206CCA, whichever is higher