Rates of TCS for FY 2020-21

Income tax Rates Updates

Normal TCS rate for financial year 2020-21 were changed w.e.f 14th may 2020 by reducing normal rates by 25%. But this reduction of tcs rates was not applicable to all type of transactions and some transactions like sale of liquor shall continue to attract normal rate of TCS. Further some new transactions were also brought under the preview of TCS w.e.f 01-10-2020. A complete list of TCS rate along with related transactions for financial year 2020-21 (AY-2020-21) is provided in the table given below.–

TCS Rate Chart for FY 2020-21 (AY 2021-22)

SectionNature of transactionTCS rate applicable from 1-4-20 to 13-5-2020 (Normal rates)TCS rate applicable from 14-5-20 to 31-3-2021 (Reduced rates)
206C(1)Sale of Alcoholic liquor for human consumption1%1% (no reduction)
206C(1)Sale of Tendu Leaves5%3.75%
206C(1)Sale of Timber obtained under a forest lease2.5%1.875%
206C(1)Sale of timber obtained by any mode other than under a forest lease2.5%1.875%
206C(1)Sale of any other forest produce not being timber or tendu leaves2.5%1.875%
206C(1)Sale of scrap1%0.75%
206C(1)Minerals, being coal or lignite or iron ore1%0.75%
206C(1C)Grant of licence or lease etc of Parking lot2%1.5%
206C(1C)Grant of licence or lease etc of Toll Plaza2%1.5%
206C(1C)Grant of licence or lease etc of Mining or quarrying2%1.5%
206C(1F)Sale of a motor vehicle of the value exceeding Rs. 10 Lakh1%0.75%
206C(1G)
(w.e.f.
01-10-2020)
Remittance under Liberalised Remittance Scheme of Reserve Bank of India exceeding Rs. 7 Lakh (a) If the remittance is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education0.5% (w.e.f 1-10-20)0.5% (no reduction)
206C(1G)
(w.e.f.
01-10-2020)
Remittance under Liberalised Remittance Scheme of Reserve Bank of India exceeding Rs. 7 Lakh (b) if the remittance is other than mentioned in (a) above.5% (w.e.f 1-10-20)5% (no reduction)
206C(1G)
(w.e.f.
01-10-2020)
Sale of the Overseas Tour Package5% (w.e.f 1-10-20)5% (no reduction)
206C(1H)
(w.e.f.
01-10-2020)
Sale of goods in excess of Rs. 50 Lakh in a year by a seller whose turnover is more than Rs. 10 Crore0.1% ((w.e.f 1-10-20)0.075%

Note:-

(1) TCS Rate if valid PAN not furnished:-

As per section 206CC, if the buyer does not furnish his PAN (or Aadhaar No.) to the seller, then the rate of TCS shall be higher of-(a) twice the prescribed rate, or(b) 5 per cent
except for TCS on Sale of goods in excess of Rs. 50 Lakh in a year by a seller whose turnover is more than Rs. 10 Crore for which 5 per cent is substituted with 1 per cent.

(2) Surcharge on TCS:-

  • Surcharge is not to be added in rate of TCS in case of resident individual/ HUF /Firm/LLP/ AOP / BOI/Domestic Company.
  • In case of Non-resident & Foreign company, Surcharge is to be added in the rates of TCS at the following rates.
    Non Residents other than company (if income exceeds Rs. 50 Lakh but not exceeds Rs. 1 Crore) 10% Non Residents other than company (if income exceeds Rs. 1 Crore) 15% Non Resident companies if income is between Rs. 1 Crore and 10 Crore 2% Non Resident companies if income is greater than Rs. 10 Crore 5% Surcharge on Co-operative Society & Firms in case of Non-Residents (if income exceeds Rs. 1 crore) 12%

(3) Education Cess & SHEC on TCS:-

  • EC & SHEC is not to be added in rates of TCS in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company.
  • Education Cess @ 2% & SHEC @ 1% is deductible at source in case of non-residents and foreign company.

(4) Finance Act 2017, has removed the requirement of collection of tax at source in case of receipt of cash for sale of more than Rs.5 Lakhs in case of Jewellery and Rs. 2 Lakhs in case of Bullion, other goods.

(5)As per Section 206C(7), If the person responsible for collecting tax does not collect the tax or after collecting the tax fails to pay it as required, he shall be liable to pay simple interest at the rate of One per cent per month or part thereof on the amount of such tax from the date on which such tax was collectible to the date on which the tax was actually paid and such interest shall be paid before furnishing the quarterly statement for each quarter.

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