Looking for the latest TCS rates in India for FY 2025-26? Here’s the complete and updated list of Tax Collected at Source (TCS) rates applicable from 1st April 2025 to 31st March 2026, including all relevant sections of the Income Tax Act, thresholds, recent removals, and rate changes as per the latest Budget announcements. Whether you’re searching for TCS on overseas remittance, foreign tour packages, sale of motor vehicles, or scrap sales, this guide covers everything you need to know about TCS applicability, rates, and exemptions for Financial Year 2025-26.
Final TCS Rates Applicable for FY 2025-26 (1 April 2025 to 31 March 2026)
Section
Nature of Receipt
Threshold / Applicability
Rate
Notes
206C(1)
Alcoholic liquor for human consumption
No threshold
1%
—
206C(1)
Tendu leaves
No threshold
5%
—
206C(1A)
Timber obtained under a forest lease
No threshold
2%
—
206C(1A)
Timber obtained by any mode other than under a forest lease
No threshold
2%
—
206C(1A)
Any other forest produce (excluding tendu leaves and timber)
No threshold
2%
Rate rationalized to 2% from earlier 2.5%
206C(1B)
Scrap
No threshold
1%
—
206C(1C)
Parking lot, toll plaza, mining, quarrying
No threshold
2%
—
206C(1E)
Minerals (like coal, lignite, iron ore)
No threshold
1%
—
206C(1F)
Sale of motor vehicle
Value exceeding ₹10 lakh
1%
Applicable on each sale, not aggregate
206C(1)
Cash sale of goods (other than bullion/jewellery)
Cash receipt exceeding ₹2 lakh
1%
Threshold applies for aggregate cash receipts on a single day
206C(1G)
Remittance under Liberalised Remittance Scheme (LRS) and Overseas Tour Package
As per below
—
Detailed breakdown provided below
Removed
206C(1H) – Sale of goods (turnover > ₹10 crore, sales > ₹50 lakh)
—
Removed
Applicable till 31 March 2025; removed from 1 April 2025
Removed
206CCA – Higher TCS for specified persons (non-filers of ITR)
—
Removed
Applicable till 31 March 2025; removed from 1 April 2025 to reduce compliance burden
✅ Detailed Breakdown of Section 206C(1G) – FY 2025-26
Nature of Remittance
Threshold (per FY, per PAN)
TCS Rate
Notes
Education (funded by loan u/s 80E)
Exceeding ₹10 lakh
0%
Fully exempt from TCS
Education (other than above)
Exceeding ₹10 lakh
5%
Applicable only on excess
Medical Treatment
Exceeding ₹10 lakh
5%
Applicable only on excess
Overseas Tour Package
₹10 lakh
5% up to ₹10 lakh; 20% above ₹10 lakh
Tiered rate structure applies
Other LRS (Investments, property, gifts, etc.)
Exceeding ₹10 lakh
20%
—
⚠️ Important Notes:
PAN/Aadhaar not furnished → Higher TCS of twice the rate or 5%, whichever is higher.
206C(1H) Removed → No more TCS on sales of goods exceeding ₹50 lakh (reduces overlap with Section 194Q TDS).
206CCA Removed → No requirement for higher TCS on non-filers of ITR from FY 2025-26 onwards.
Educational Remittances via Loans (Sec 80E) → Fully exempt from TCS from FY 2025-26.
