Article contains updated TCS Rate Chart for For Assessment year 2020-21 (Financial year 2019-20) and Assessment year 2021-22 (Financial year 2020-21) updated with latest changes made by press release dated 13th May, 2020 and Finance Act, 2020. It further explains newly inserted TCS Provisions of Section 206C(1G)(a) – TCS on foreign remittance through Liberalised Remittance Scheme (LRS), Section 206C(1G)(b) – TCS on selling of overseas tour package and Section 206C(1H) – TCS on sale of any goods [except goods on which TCS applicable as per Section 206C (1), 206C (1F) and 206C (1G)].
Finance Minister has has made various changes in TDS provisions vide Finance Act, 2020 and Introduces two New TCS Sub-Sections i.e. Section 206C(1G) and 206C(1H) which provides TCS on foreign remittance through Liberalised Remittance Scheme (LRS) and on selling of overseas tour package TDS as well as TCS on sale of goods over a limit. Post these changes some of our readers has asked us to come up with a TCS Chart applicable for Financial Year 2020-21. Hence, here we come up with TCS rate chart for Assessment Year 2020-21 (Financial Year 2019-20) and Assessment Year 2021-22 (Financial Year 2020-21) which is updated with changes announced by finance Minister on 13th May 2020.
Section | Particulars | TCS Rates (in %) (AY 2020-21) | TCS Rates (in %) (Upto 13th May, 2020) | TCS Rates (in %) (From 14th May, 2020 to 31st March, 2021) |
206C(1) | Sale of the following: | |||
a) Alcoholic Liquor for Human Consumption | 1% | 1% | 1% (No Change) | |
b) Tendu leaves | 5% | 5% | 3.75% | |
c) Timber obtained under a forest lease | 2.5% | 2.5% | 1.875% | |
d) Timber obtained by any mode other than under a forest lease | 2.5% | 2.5% | 1.875% | |
e) Any other forest produce not being timber or tendu leaves | 2.5% | 2.5% | 1.875% | |
f) Scrap | 1% | 1% | 0.75% | |
g) Minerals, being coal or lignite or iron ore | 1% | 1% | 0.75% | |
206C(1C) | Grant of lease or license of the following: | |||
a) Parking lot | 2% | 2% | 1.5% | |
b) Toll Plaza | 2% | 2% | 1.5% | |
c) Mining and quarrying (Other than mining and quarrying of mineral oil, petroleum and natural gas) | 2% | 2% | 1.5% | |
206C(1F) | Sale of the motor vehicle of the value exceeding Rs. 10 lakh whether payment is received by cheque or by any other mode | 1% | 1% | 0.75% |
206C(1G)(a) | TCS on foreign remittance through Liberalised Remittance Scheme (LRS)
(This Section is inserted by Finance Act, 2020 which is proposed to be applicable from 01/10/2020) (Please refer Note 1 for in depth explanation of this new section) |
NA | 0.5%: Where remittance is a repayment of loan obtained for the purpose of pursuing any education.5% In any other case.(wef 01.10.2020)(10% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
0.5%: Where remittance is a repayment of loan obtained for the purpose of pursuing any education.5% In any other case.(wef 01.10.2020)(10% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
206C(1G)(b) | TCS on selling of overseas tour package
(This Section is inserted by Finance Act, 2020 which is proposed to be applicable from 01/10/2020) (Please refer Note 2 for in depth explanation of this new section) |
NA | 5%
(10% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
5%
(10% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
206C(1H) | TCS on sale of any goods [except goods on which TCS applicable as per Section 206C (1), 206C (1F) and 206C (1G)]
(This Section is inserted by Finance Act, 2020 which is proposed to be applicable from 01/10/2020) (Please refer Note 3 for in depth explanation of this new section) |
NA | 0.10%
(1% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
0.075%
(1% for non PAN or Aadhaar cases) (W.e.f. 01/10/2020) |
Notes:
Some more in depth clarification on this section to avoid doubts at the time of actual implementation:
(Article is been compiled by CA Sandeep Kanoi and CA Prapti Raut and updated with changes announced by finance Minister on 13th May 2020 )
TCS is application for MEIS scrip sale ( More then 50 Lakhs ).
If yes what is percentage of TCS
from 1st April -2021 we can collect the TCS on Sales / we have to hold up to Sales value Rs 50 Lks
Dear Sir,
In case of Work Orders. There will be combine of goods & services.
How can we apply TCS on sales in this case.
We can’t generate separate bills for Goods & Services it will be lump sum work.
Kindly clarify the same.
Thank you
Manu Chakravarthy
I m petrol pump owner ,Is TCS is applicable for diesel and petrol, should be collect from customer ?,at what %,is it refundable for income tax payer ?
In My 26AS TCS deduction is mentioned under 206CQ BY ICICI Bank could anyone explain me what is it?
Sir,,
What is current position of TCS on Sale of Jewellery and Bullion. What is the threshold for these two sales. Specially if Cash Sale
Kindly tell me to whom excess 7 lakh transaction limit applicable for buyer or seller.
Is it as right under mentioned points:
1) TCS @ 0.075% on Sales of any goods if aggregate Sales value exceeds fifty Lakh during the FY 2020-21 and w.e.f 01-10-2020.
Please suggest .
Thanks.
1. TCS U/S 206C(1H) ON AGGREGATE RECEIPT FOR ALL SALES TO ONE PARTY OR SINGLE SALE AMOUNT TO THE PARTY RECEIPT?
2. AND TCS COLLECTED BILL RAISED AFTER 01-10-2020 OR APPLICABLE IT FOR PERIOD OF 01-04-2020 TO 30-09-2020????
The TCS of 5% under LRS of RBI, can be taken as Credit for the subsequent year’s Tax liability of the Remitter ? Suppose in the next year, his taxable income falls below the minimum prescribedd limit, will he be receiving this amount as “REFUND” after filing the tax return.??? Please explain
What is TCS rate for E-commerce Operator for Sales against sales of good.
Sir, After budget is there any changes in TCS rate % for jewelry purchase and for bullion purchase. Kindly clear my doubt and do the needful for me.
What is the calculation of tcs for coal on .01.02.2020 after budget
TCS collected on invoice level or at the time of payment (accounting) ?
Dear Sir,
Please clarify the following points;
1) TCS applicable on entire sale or only sales in excess of Rs. 50 Lakh.
2) TCS is to calculated on sales including GST or excluding GST.
3) Is TCS u/s 206(1H) also applicable on export sale?
Thanks.
Please Send / Post Income Tax Return Forms
I T R 1 SAHAJ , And IT R 4 for Assessment
Year 2020 – 21 , Which May Be Helpful For
Many To Prepare The I T Returns .
Thanks.
Nice one sir. .thanks a lot